Hutch you are still having difficulty in understanding Bill Murphy, Chairman
of Gold Anti Trust Action (GATA).
I hope the following increases your awareness of this non profit organization
that is looking into the possibilities that corruption has taken place in the
gold markets for many years. The Gold Anti Trust Action (GATA) has a web site
that I wish you would visit, as it is clear to me thru reading your recent posts
that you have received anti gold bug information to cast doubt upon what this
activity is doing. Please visit: gata.org
With the understanding that your post is read by others, I will present now
to both you and other readers that need the opposite view of what you think
about the man Bill Murphy who is Chairman of Gold Anti Trust Action (GATA).
[Start. Bill Murphy talks about GATA activity.]
Thursday Feb 24
Hello everyone, Bill Murphy here,
Brutal!
The collusion crowd made sure gold did not break its downtrend line as they
continue their scheme to hold down the gold price. Their tactics have worked
again so far as some of the black box technical specs that were long are now
pitching those longs and maybe even going short.
These crumbun "goons" are very good at demoralizing any investor who dares
show interest in the gold market.
This is a real pain in the butt. Yet, there is a good old saying,
"he who laughs last, often ends up laughing best."
As Chairman of The Gold Anti-Trust Action Committee, I am officially
putting "Hannibal Lecter", the "Hannibal Cannibals" and a certain sector
of U.S. officialdom on NOTICE. It is time for the truth to come out.
The gold lease rate is almost ZERO.
Mitsui has the one month gold lease rate at 0.05 / 0.35.
With a potential of another gold spike occurring at any time,
gold borrowers say no thanks.
Not all is despair.
Goldman Sachs was spotted taking in the "fences" today.
It might be a very bullish, big picture action.
When gold traded at $320, GS bought 290 puts and paid for them by selling
370 calls. That trade should have been a big winner as the price of gold
has dropped by $20 and is closing in on the 290 strike price.
Surprise, surprise. Today, GS was spotted taking OFF that trade IN SIZE
and it had only netted them around a mere 30 cents. And, they were seen
undoing the trade on Comex which is not their normal option trading style.
We think this is bullish because the call prices are not coming down
with the fall in the gold price. Extraordinary! The option volatilities
remain high. The big boys know that the gold market could explode to the
upside at any time. Call premiums remain very high, and at the same
time, few want to borrow gold. It is no fluke why this phenomena is
occurring. Gold is a ticking time bomb!
The bank shares are headed south because something is very wrong in
financial land. I have gone over my thoughts on this so often for so
long I won't go there again today except to point out once again that
the bullion dealers are financial institutions. If chaos rears its ugly
head in the banking world, it is only common sense it will effect the
thinking about their gold loans, as it will effect policy on ALL loans.
We know that if there is a rush to call in a decent number of gold loans
by the banks, it will most likely cause a gold buying panic that could
shock the uninformed financial community. It does not take an Einstein
to understand this one. Outstanding gold loans: 10,000 tonnes or so.
1999 gold mine supply: 2560 tonnes. Oh boy!
Will it come to this?:
When asked about the Tokyo Commodities Exchange's decision this week
to cap the price of futures contracts, Trevor Pitts (Standard Bank's
Platinum Marketing Manager) said it was done "in order to save the shorts."
This is a revolting development. The gold market is manipulated for
the shorts for years and NO exchange does ANYTHING. Then a market explodes
due to dramatically bullish supply/demand considerations and the shorts
change the rules for their own benefit. Just as they did to the Hunts on
the big silver run up in 1980.
It is TIME for the short crowd to be INVESTIGATED and that is just what
may finally happen. GATA has been working behind the scenes at the highest
levels of the US Senate and US House of Representatives. We have been asked
to submit a one to two page bullet point summary of our take on what has been
going on in the gold market, backed up by various documents. In our bullet
point summary, it was suggested to us by FRIENDS of certain Senators and
Congressman to request a Congressional investigation into the gold market.
In that regard, if anyone has ANY pertinent information on the manipulation
of the gold market, now is the time to get that information to GATA.
If you prefer to go directly to our attorneys, Berger & Montague,
that is fine. Merrill Davidoff can be reached at 215-875-3084 in Philadelphia.
Please do not contact him just to chat. Not at $500 an hour.
The XAU can't get out of its own way, closing at 61.93. Portfolio managers
realize the gold market is rigged against them and want no part of it.
GATA just received a sizable contribution from a major gold producer.
A big thank you goes out to them. The best bucks they ever spent.
I did a radio interview yesterday with Fairbanks, Alaska radio as a warm up
for my trip there in two weeks to speak in behalf of GATA at the Alaskan
Miners Association Convention.
It is hard for me to get my mind off the fact that there is a strong
probability that Congress will actually begin an investigation into
the shenanigans going on in the gold market.
I can see it now.
June 2,000
Washington, D.C.
The United States Congress
The Committee asks:
Jim Riley, commodity top dog at Goldman Sachs: Please raise your right
hand. Do you swear to tell the truth, the whole truth, and nothing but
the truth.?
Mr. Riley, could you please tell this committee about why the Financial
Times stated that your firm had a conflict of interest in advising
Ashanti Goldfields Ltd and how that conflict may have contributed to
their financial disaster. While you are at it, how is it that your name
shows up week after week in the thick of controversy in these documents
that The Gold Anti-Trust Action Committee turned over to us? Mr. Riley,
your firm's trading volume and activity in the gold market has grown
dramatically this past year. Would you please tell this committee about that?
Two more questions, Mr. Riley. Why is Goldman Sachs sometimes called
"Hannibal Lecter" and do you have any offshore accounts on your books
for the U.S. Treasury or the N.Y. Fed?
Mr. Charles Van Arentschildt, chief gold trader for Deutsche Bank.
This committee would like to know about your alerting clients
the day before the May 7 Bank of England gold sale announcement that
"the price of gold will not go above $290."
Mr. Frank Arisman, chief gold trader at J.P. Morgan. Your firm and
Goldman Sachs are co-chairs of the Counterparty Risk Management Group
formed a year ago January. Does your risk management include capping
the gold price at the same time?
Mr. Dinza Mehta, chief gold trader at Chase Bank. This committee would
like to take a look at your gold book. You report your consumer loan
book, your mortgage book, your LDC loan book, etc. Why not your gold
book? What are you afraid of disclosing? This does not pass the smell
test. This committee would like to see what you have been up to in the
gold market. Oh yes, just curious Mr. Naylor. If your firm is so "with
it" on gold analysis, how come you managed to get Newmont Mining to buy
all those puts and write all those calls on the lows last summer?
Mr. Peter Munk, Chairman of Barrick Gold. This committee appreciates
you flying in from Europe while your real estate firm is having financial
difficulties. We have looked over your operation and it appears to us
you are more of a hedge fund than a gold producer. As an aside, we are
recommending that your firm be taken out of the XAU. Your over weighted
presence in that widely reported index distorts its value as a share
proxy for the gold market.
Mr. Riley, sir. One last question. Can you tell me why EVERY TIME there
is stock market chaos, the bonds weaken, the oil price takes off,
financial market turmoil, etc. (market activity that is normally bullish
for the price of gold) that the price of gold goes down on that day?
Gentlemen:
This committee thanks you all for coming to Washington today. We will
be back in touch. It is clear that the gold market has been manipulated.
Many have suffered unnecessarily as a result of the gold price not being
allowed to rise. It also appears that certain firms have benefited
financially in significant amounts from this manipulation. That activity
was inappropriate, unethical and, possibly, fraudulent, to put it mildly.
This will require further Congressional action.
Good day.
[End. I can see it now.]
[End. Bill Murphy talks about GATA activity.] |
