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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (3480)	5/10/1999 11:08:00 PM
From: d:oug	Read Replies (1) \| Respond to of 4066

lemetropolecafe.com GATA Gold Anti Trust Action Just as the gold market was finally stirring up serious bullish commentary all over the world, it was bushwhacked on Friday as the shorts had to call in the Bank of England,to announce that they are selling 415 tonnes of gold, to defend "Navrone". The price of gold was sent reeling by some $13. ...since the Swiss referendum to sell gold and the IMF deliberations to auction gold have not been sufficient to hold the price down ... that Rubin had to revert to Plan C. The US Congress would be unlikely to buy into this, so US puppet Britain was the quickest route to an immediate dumping. The inflation scare of the past three weeks has seen capital rotating into resource and cyclical issues. Bond prices tanked. Precious metals then start to rear their 'ugly' head.... ...Rubin, still hiding in the shadows, hits the red alert button. Key question: does he have any more ammo or is he playing his last card? ...the central banks do not want to see gold higher...gold is real money and they cannot control it...They can knock it down temporarily...all the banks can do is to try and keep gold from rising in terms of paper contracts. Beliefs of a central bank conspiracy to hold down the price of gold have been greatly strengthened by the recent action of the Bank of England. Three times, short covering rallies the past 8 weeks every single time a Central Bank announcement follows (e.g. Either G7 members backing IMF sales or intent to sell its own reserves) to halt the rally. ... the Swiss referendum to sell gold and the IMF deliberations to auction gold have not been sufficient to hold the price down in fact the price is UP that Rubin had to revert to Plan C. The US Congress would be unlikely to buy into this, so US puppet Britain was the quickest route to an immediate dumping. The inflation scare of the past three weeks has seen capital rotating into resource and cyclical issues. Bond prices tanked. Precious metals then start to rear their ugly head. Greenspan runs to the media with his canned warnings. And Rubin, still hiding in the shadows, hits the red alert button. Whatever the facts about the BOE extraordinarily timed and unique announcement, it has now turned many of the suspicions of orchestrated intervention (which have hitherto lurked in the background) into outright conviction. Funds and proprietary trading desks will duly take note and will surely be emboldened to sell more gold short, since there is now a prevailing conviction that City Hall is behind them. ...Swiss, English and US bullion banks and investment houses have such large gold borrowings that they would be in serious financial jeopardy should the price of gold rise sharply. My guess is that the reason that this has occurred is they are using the "cheap 1% gold loans to bail them out from the fallout of the financial crisis of late summer/early fall of last year ( the LTCM phenomena ) . A sharply rising gold price would crush the maneuver. The Swiss gold sale and IMF gold sale proposals to talk down the market were failing as the previous commentary has suggested. The gold market was about ready to rocket. That is what the soaring gold shares around the world were telling everyone-including U.S. officialdom and English officialdom. So they put the rabbit out of the hat and made this ludicrous BOE announcement. ... that means the gold loan time bomb will tick even louder... ...gold borrowing shorts will know the jig is up, they will cover, and the price of gold will head toward an equilibrium point of about $500. Bill Murphy ( Midas ) Disclaimer notice: Midas du Metropole does not look like an investment advisor, nor is he one. Any comments about any gold and silver shares by Midas or any of the Cafe members are for your information and entertainment only. They should not be regarded as advice and should be treated like comments passed on at any other Cafe.