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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (48734)	2/11/2000 6:40:00 AM
From: d:oug	Read Replies (2) \| Respond to of 116915

(GATA) Barrick CEO Oliphant blamed GATA for ABX's poor stock performance. Subj: MINI MIDAS - Gold Price Soars Date: 2/10/00 9:46:18 PM EST From: LePatron@LeMetropoleCafe.com Le Metropole members, Midas du Metropole has served A MINI MIDAS at The James Joyce Table. "A lot happening" February 10, 2000 Mini Midas So much to say. Action everywhere. For starters, gold gapped higher, stalled at $316, sold off quickly and then very steadily rose for the last half of the trading session. The move up was about as orderly as I have seen as buyers came in on every little dip. Early in the day, I received word that a bullion desk was closing down its operations because of some sort of derivative disaster. The source is an old pro and is reliable, not one to spread gossip. That does not mean he is getting the right scoop. When the rumor came back to me a second time, I sent it out to you after the close. That wasn't the only hot story out there. The continuing Ashanti saga has traders wondering whether the Government of Ghana will just nationalize those assets and stick the bullion dealers with the hedge positions that are rapidly worsening by the day. The rationale would be that the bullion dealers were responsible for the blow up and should have to pay the piper. That may not be in the cards at all. But, Ashanti's written calls with a 330 strike price are in the picture. A move above $330 would take these out of the money calls into the money and effect a stampede of buying that could turn into a buying panic as no one seems to know how the Ashanti "work out" will be resolved. It might not only panic the liable bullion dealers, but other shorts that know what is likely to happen if $330 gold is breached to the upside. Fireworks time? Just in - 8 PM CST: The Ghanian Government Launches Broadside Against Ashanti Too much to get into now. Some goodies. Their hedge book is under water to the tune of 570 million dollars with a 270 million dollar present margin call. Barclays Bank and Chase Bank were going to lend them 250 million, but pulled out of their offer about 6 weeks ago. What a mess! Adding to the bears woes were South Africa's Anglogold Ltd and Western Areas Ltd. Anglogold announced that it trimmed its hedge book by 10 tonnes in the fourth quarter and that it would "continue to deliver into its hedge" for the rest of 2000 and reiterated its positive gold price outlook. Western Areas Ltd announced that is has closed out its forward sales of gold for the next two years. A banner day. Almost. For some inexplicable reason Homestake Mining CEO, Jack Thompson, took this moment to announce that Homestake, which is mostly unhedged, "would engage in hedging." What could he be thinking of? The gold market is responding very positively to all these reductions of hedging announcements and he goes the other way at exactly the wrong time. Homestake is known for staying away from hedging and is popular because of that. Didn't Jack Thompson learn anything from Randall Oliphant, Barrick CEO, whose Monday mamby pamby press release did not go far enough for the market about its future hedge plans and sent the gold price plunging? Barrick had to back peddle and put out another more positive press release on Tuesday. Bummer, Jack. Get with the program. 100 years of practically no hedging and just when the anti-hedging tide is on a roll, your company is going to roll over. Not good, not good at all. The Bank of England denied it was going to halt its future gold sales. Why should they? They need to average down their incredible loser trade of selling gold and buying euros. The euro has gone down 10 to 15% while the gold price as soared after they brilliantly sold gold at their auctions at prices from around $255 to $289. Not good, not good at all. According to Reuters, The European Union should soon authorize the European Central Bank to double its paid in capital, ending months of behind-the-scenes wrangling and smoothing the way for a similar increase in tits reserves, EU and ECB officials said today. This could be a very constructive event for the gold market if it means that the ECB requires the European central banks to shift 747 tonnes of gold into the ECB. If that happens, the moans of gold bears will be heard all over as that gold will not be available for future sale or lending purposes. There was much action today in the all the markets, most of it gold bullish. The CRB..... The oil chart is a beauty..... Of course, there is no inflation. The bond auction was a dud and..... The bank stocks fell again as their..... The rise in the gold price has been stunning, yet the open interest on Comex is only 156,964 contracts. There are few spec longs. Not many players believe this gold rally will amount to anything. An anecdotal delight for us gold bulls. The senior North American gold shares are feeling the lack of interest too. Today was extraordinary. Gold goes up $10 and the XAU could only manage a .75 gain and finished at 68. 34. Newmont Mining gained 3/4 of a point, but Barrick Gold could not even close above unchanged and finished at 18 7/16. During the summer, Newmont and Barrick were trading at the same price. I was informed today that Randall Oliphant, Barrick CEO, blamed GATA for his companies poor stock performance. From the podium at a New York presentation today, he cited the "conspiracy forces" as the main reason that Barrick stock is performing so poorly. First Summers, then Greenspan, then "Hannibal Cannibal" Chase, now Barrick. All have responded to GATA. We can't be all bad. More on that soon. Unusual events late in the day. Right before the gold close, April was $319 bid. Goldman Sachs knocked it back down to make sure $319 was not violated to the upside. Then, there were sell imbalances on the senior North American gold shares and the XAU was hit for over a point going into the close. I guess portfolio managers are selling their gold shares to get into the high tech mania. One month gold lease rates hit a new low. No takers. The price of gold should rocket. The sharks know that a bleeding Ashanti is there for the kill, etc. The Barrick calls go in the money at $319. The specs have not bought yet. The shorts now know that the producers are serious about reducing future gold supply. Inflation is on the move. You know the rest. Who is selling? The gold market roars unless the increasingly desperate manipulation crowd enters the scene once again. Midas All the best, Bill Murphy Chairman, Gold Anti Trust Action (GATA) gata.org Le Patron, Le Metropole Cafe lemetropolecafe.com The above mention of GATA is as follows. Bill Murphy, Chairman, Gold Anti Trust Action (GATA) gata.org Also, GATA related articles can be obtained at the pay for view site. Bill Murphy, Le Patron, Le Metropole Cafe lemetropolecafe.com