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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Phil Jones who wrote (13938)	10/20/2000 3:19:56 PM
From: Richnorth	Read Replies (1) \| Respond to of 14627

If you believe, the following is heartening news from Le Metropole (GATA):- Le Metropole Members, Yesterday, I was interviewed by Alec Hogg in South Africa who has the top rated financial radio show in that country called "Classic Business." This piece was posted at www.miningweb.com as a result of that interview. Posted: 2000/10/19 07:00 PM GMT+2 Gold to smash through $600/oz when rebound comes - Murphy The Gold Anti-Trust Action Committee (GATA) believes gold will burst through $600 per ounce as financiers who have engineered bullion's price finally lose control. Gata's president Bill Murphy says the gold market is in an explosive situation and that the catapult in price should have taken place last year when gold rallied to about $330 per ounce. "Alot of the producers have reduced their forward positions and the situation is explosive. Except, this time, it will have to go further than $600 because of the suppression of the price an extra year," he says. At the time of the last major surge in the gold price, some of the world's governments got together to make sure gold was suppressed, Murphy alleges. This is owing to some 10 000 tons of gold which has been sold short by bullion banks and which cannot be delivered upon should the gold price recover. "We know for a fact that the chairman of Lonmin told an associate of ours that certain governments got together to make sure the price of gold came right back down again because they realised after the Washington Accord what they had unleashed," said Murphy. Murphy disclosed further alleged government wrangling: "We even know some of the terms where bullion dealers were given thirty tons of gold to lease into the market on a three-year pay back basis which is very generous," he added. He is referring to events last year in which Lonmin and another company, Cambior, were revealed to be hundreds of millions of dollars underwater with their forward sales programmes. Murphy also believes the US government has taken up some of the "exposure" in the market after gold producers reduced their forward sales. In February this year, a number of gold producers including Placer Dome, said they would rely less on gold hedging. "I must say that some of the exposure has been taken on by the United States government, specifically the exchange stabilisation fund which is a secret fund here in the US". The exchange stabilisation fund, which reports directly to congress and the president, has huges losses and gains which Murphy says is related to the fund's secret manipulation of the gold price. But nefarious anti-gold forces cannot prevail forever. Murphy added that the rebound in the gold price will be caused by an unforseen catalyst. Signs to watch out for are volatility in the gold price. But it was likely to be a stock market debacle, an explosion in the oil price or a world event that would actually trigger gold's recovery. "Something will cause them (the bullion banks) to lose control such as the entry of a massive physical buyer entering the market such as the Asian official sector," said Murphy. Murphy's comments come against a backdrop of gold market sluggishness. The gold price spiked a week ago, touching $278 per ounce, after tensions in the Middle East gathered and the oil price increased. Equity weakness in the US was another factor. However, the gold price eased back a day later: "Think about it, we went up $84 and came right down again. What kind of free market does that?". "Why isn't gold just staying up as inflation starts to surge all over the world. It's going down," he said. Gold is currently trading at $270.40 per ounce, a level where it has shown good resistance for a number of weeks. By: David McKay Le Patron Note: David McKay is referring to Ashanti when he says that Lonmin was hundreds of millions of dollars underwater in its forward sales programmes. <A HREF="http://www.LeMetropoleCafe.com/entrance.cfm">Le Metropole Cafe</A> All the best, Bill Murphy Le Patron www.LeMetropoleCafe.com