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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (6583)	1/30/2004 10:58:51 PM
From: Chispas	Respond to of 110194

Tonight Chris Powell, about Norweigan gold sales.. "Useful light is shed on the week's events by one of Bill Murphy's readers at LeMetropoleCafe, Mihaly. "He points out that the annual report of Norway's central bank reveals that 94 percent of the 33.6 tonnes of gold the bank had at the end of 2002 had already been lent out -- that is, sold. So the Norwegian gold sales just announced did not add fresh supply to the market. Given the insignificance of the amount of gold involved here, this was effectively manufactured news. The bank's annual report can be accessed on the bank's Internet site here: "http://www.norges-bank.no/english/publications/annual_report/ "The information is in Note 3 on Page 71. "Of course the noted gold bear greatly enjoyed yesterday, which he accurately points out was reproduced across a range of commodities. He is concerned to suggest that the pattern of the Bundesbank's comments on gold indicate malign intent. In view of the Norwegian information this is certainly plausible. "Nevertheless, it is clear that keeping gold down here is going to require large fresh supplies of physical gold." Mihaly has another goodie for us: "The 2003 report of the Reserve Bank of Australia .... rba.gov.au ... shows on Page 85 that Australia has loaned out all 1,465 tonnes of its gold. That's not really a surprise but something else is, on Page 31 under 'Reserves Management': "'Foreign currency reserves assets and gold are held primarily to support intervention in the foreign exchange market. In investing these assets, priority is therefore given to liquidity and security, in order to ensure that the assets are always available for their intended policy purposes.'" What these two informative tidbits mean: First the Norwegian news. Norway's gold has already been sold. Gone. The Norwegian central bank's press release was disingenuous, suggesting that the bank had just dumped central bank gold and there was more to come. The announcement was made to correspond with the trashing of the gold price a few days later. Nothing is that coincidental when it comes to the gold market. The announcement reveals the depths to which Western central banks will go to coordinate their statements and activity to trample the gold price. "Conspiracy" is much too small a term to describe the price-suppression scheme. The Norwegian news supports GATA's claims that central bank gold loans are three times those acknowledged by the gold industry and the Gold Cartel apologists. The Norwegian gold loans were not included in any of the official gold reserve numbers. More than 90 percent of Norway's gold reserves have been counted among total central bank gold reserves even though they were no longer in the vault. How many other central banks have done the same deceitful accounting? For whatever reason, the Norwegian gold loans now suddenly are to be recorded as sales and not loans -- that is, Norway will not ask for its gold back. Asking for its gold back would put upward pressure on the gold price. This sort of revelation adds support to GATA's belief that Germany is in the same boat as Norway, only Germany's gold loans are hundreds of tonnes greater. This suggests that a big percentage of Germany's gold is lent out too and that, to avoid complications, the Bundesbank also wants to record its gold loans as sales. Thus any German gold sales would have no impact on the gold price; they would be nothing more than accounting entries. Second, the Australian revelation. The Australian central bank report says it all. Gold is used "to support intervention in the foreign exchange market." GATA calls it market manipulation, just like what we saw yesterday. The stark language used in this Australian government is more evidence that GATA has been right all along.