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"The way I see it,
if you want the rainbow, you gotta put up with the rain." … Dolly Parton
GO GATA!!!
The reason for this rare, extra commentary over a weekend is to
focus on a couple of points which really stand out in their particular significance
and are worth pondering
in terms of what is coming down the road for financial markets.
The first is what we
jumped all over on PLANET GATA from
the get-go about the JP Morgan hedge
trade flap gone wrong. It made NO sense from the very beginning to any of us that such a
commotion was made over a $2 billion loss on a trade, for whatever reason, when they had
just reported yearly gains of $18 billion. Clearly,
Mr. Dimon’s public pronouncement,
that caught the attention
of the entire investment
world, was only paving the way for future announcements that will be much
more dramatic. All he was doing when
he inferred the losses MIGHT get worse was protecting
himself, as best he could, by going on the record.
The latest news on JPM…
14:31 JPM JP Morgan Chase struggling
to unwind ill-placed bets - WSJ
While breaking no
real news, this story notes that
the bank's losses could eventually prove to be even
bigger than the $5B some people familiar with the matter have been predicting (see linked comment). The losses could potentially deepen if the company sells its positions into a market that has turned against said positions.
The article notes that while
the bank has said that it will
take its time unwinding the positions, this does not necessarily guarantee smaller final losses than trying
to close out the trades sooner,
as the market could turn sharply against the bank in the near term.
Reference Link: Wall Street Journal
http://online.wsj.com/article/SB100014240527023038796045774126
13778263918.html
14:50 JPM CFTC latest federal agency to begin investigating JPMorgan Chase - NYT DealBook
NYT Dealbook reports, citing people
briefed on the matter, that the Commodity Futures Trading Commission opened an enforcement case on Friday examining
the bank's trading loss. The CFTC joins the SEC and FBI in investigating possible wrongdoing
at the bank. Gary Gensler, the agency's chairman,
is expected to disclose the investigation when
he testifies on Tuesday before the Senate Banking Committee.
Dealbook says that the CFTC will potentially examine whether the
bank’s trading affected the market for credit derivatives, for which it has jurisdiction.
Reference Link: NY Times - http://dealbook.nytimes.com/2012/05/18/c-f-t-...-jpmorgan-loss/
* * * * *
This
latest investigation into
JP Morgan might be a big deal for the GATA camp. This is
actually quite complicated, but very intriguing. The CFTC has been investigating
JPM’s role in the silver market manipulation scheme for what will be four years soon. FOUR YEARS! Good friends, like Dave from Denver, have nothing but loathsome talk about the CFTC, for good reason. GATA’s rationale (speaking for myself) about this ridiculous investigation is that the CFTC really has uncovered the scam, but because it is
backed by the US Government,
they are flabbergasted
about what to do, so they do nothing.
The reason they have not closed the case is because they are petrified the silver market might blow up down the road. Think
about if you were them. They want
this to go away, but if
the silver market does blow up, and there is some
kind of "Force Majeure" declared in silver by JPM, the
CFTC would not only look like fools, but, perhaps it might
be said they were more than negligent.
Thus, they have done nothing.
Well, all of a sudden,
Lo and Behold
a new factor enters the silver
scam investigation, which
directly affects Morgan’s
constant claims to the CFTC that their huge silver
short position is hedged.
Ya mean like hedged in an economic sense as per their claims re the latest credit derivatives market trade was a hedge? This just might force the CFTC to demand JP Morgan prove their claims their silver short position is really a hedged one. This is what I suspect might occur due to the growing scrutiny over Morgan’s trading activities. The CFTC people, except
for Bart "Elliot Ness" Chilton, are sycophants and have toed the company line … but there is a point when
FEAR makes that no longer
viable. They are not going
to go to jail for taking
one for the team. My guess
is we are getting close to that Tipping Point.
As the JP
Morgan hedged losses mount and become
"official," the heat on them is going
to mount. They will be scrutinized
every way imaginable. How
can all the class action lawsuits
against them, and blatant evidence against them via just what Andrew Maquire has sent to the CFTC via their
role in the silver scam, be ignored?
We have already
been informed, as of a week
ago, that the Morgan losses on their "hedge trade" fiasco could be as high as $15
billion, or more. Already, even
the WSJ is alluding that their losses
are higher than $5
billion. This is MEGA! As we
have discussed on PLANET GATA, this
is not just about Morgan,
but confidence in the entire financial
system. If the $70 trillion derivatives book at Morgan goes NUCLEAR, we could have a financial market
TITANIC event which might be right around the corner.
GOOD GRIEF!
Now, for the weekend edition,
number two re the understandable, but nauseating, commotion over the Facebook IPO on Friday, which was heralded
by CNBC all week.
First, the background…
*The Dow is going down day after day,
not with any fanfare, but
all rallies are sold. In very
quiet and subdued selling,
general investors inherently know something is wrong and are acting upon that instinct.
*Europe is falling apart
we know, but little is being said
about how the US financial system is in parallel with Europe. How bad is this? Just the state of California budget deficit goes from something
like $8 billion to a staggering
$16 billion and it creates
almost no commotion. Huh?
Getting back into
the GATA aspect of this is
that the US financial markets are all about market
manipulation. You need to go nowhere
further on what the real
deal about US financial markets
than this headline…
Banks spend big to prop up Facebook shares on
first day of trading
By GARETT
SLOANE and MARK DECAMBRE
Last Updated:
8:15 AM, May 19, 2012
Posted: 11:34 PM, May 18, 2012
It was another Wall Street bailout — but this time
the banks had to cough up the cash. Facebook’s
underwriters propped up
the social-network’s trading
debut yesterday, as the shares threatened to crash through the initial public offering
price of $38. The banks working on the massive $16 billion IPO, including Morgan Stanley, JPMorgan
Chase and Goldman Sachs, did their
duty by buying up large
blocks of Facebook stock toward the end of the day to support the price.
Facebook shares opened up 11 percent at $42.05, and traded as high
as $45, before running out of steam,
disappointing investors hoping for a big first-day pop. The shares closed up just 0.6 percent at $38.23.
Without the bank bailout, Facebook’s IPO would have been a loser on the day,
Wall Street insiders said.
The heavy buying, however, cut into the banks’ already meager fees on the deal. The underwriters
agreed to accept a smaller cut — just 1.1 percent of the $16 billion Facebook raised in the IPO — in order
to land the high-profile assignment.
After splitting
$176 million in fees, the firms
likely spent more than they made in fees by buying the swooning stock. Sam Hamadeh,
CEO of research firm Privco, believes the banks spent around
$380 million on Facebook stock.
"On the heels of JPMorgan’s $2
billion ‘hedging’ trading
loss, tThe underwriters have used up all
the fees they made on the
Facebook deal just to buy
and prop up the stock to prevent
a busted IPO," said Hamadeh.
Another source said that the banks took a substantial hit yesterday, which started strong despite glitches that delayed Nasdaq trading in Facebook shares by
30 minutes past their 11 a.m. scheduled debut.
While there was plenty of finger-pointing yesterday, many blamed the bankers for setting the price too high to allow for upside. The IPO share priced at the high end of the
$34 to $38 range, which had
been raised from an
initial range of $28 to $35.
The bankers were wary of pricing the shares too low,
leaving money on the table and leading
to an outrageous first-day
pop. They were shooting for a modest first-day gain in the range of 5 percent to 10 percent.
Still, some observers heaped scorn on Facebook insiders who dumped their
shares, saying it was a red
flag that weighed on the
stock.
Facebook had increased the number of shares being sold in the IPO by 25
percent, to 425 million, with most
of the additional float coming from early
investors looking to cash
out.
The company’s sky-high valuation also made some investors queasy. At $38 a share, Facebook is valued at $104 billion — even though it
only made $3.7 billion last year.
Facebook’s big day was a drag on other tech stocks. Trading in shares of Zynga was halted
yesterday after a sharp drop, and the stock closed
down 13.4 percent at $7.16. China’s
social network RenRen was
also down more than 20
percent, to $4.93.
gsloane@nypost.com
-END-
My take on this, from my
Behavioral Finance background on how our financial system really operates, is the effort to hold up the
Facebook IPO was an effort to hold
up the stock market as a whole.
For the BF folks, perception is everything.
That is why they do what they do. The Counterparty Risk Management Policy Group (do a Google if new to you), led by the same firms that
held up the Facebook share
price, does not exist for no reason. One of their mandates is to promote market stability and that is what they
just did. That Group works closed with the Plunge Protection Team
(Working Group on Capital Markets)
to support the US stock market at
various times.
What we saw in the price rises of gold and silver at the end of the week was stunning and totally out of the natural order of the gold/silver price manipulation scheme. It was a wowser! My smeller tells me, because the dramatic rally was so
pronounced, that we are headed for some serious fireworks in the financial arena.
The Gold
Cartel could be in deep trouble now because their honcho, JP Morgan, is in deepening trouble. This is no minor event in terms of the gold/silver market manipulation scandal.
All hands on deck to prepare for the financial market commotion that seems to be right around the corner!
* * *
Less than a year later GATA was contacted by a
key economic advisor to Russia’s President Putin, Andrey
Bykov, who said he would like to attend our Gold
Rush 21 conference in the Yukon. The moribund price of gold exploded out of
nowhere two days following that conference.
 
Months later:
Not for nothing, Andrey
then came to our Gold Rush 2011 conference at The Savoy Hotel this past early
August in London. How GATA further intertwines with the Russians is inferred
in the following MIDAS commentary of nearly two years ago…
March 31, 2010 - Gold $1113.30 up $8.80 -
Silver $17.52 up 21 cents.
For the first time in 11 years I have not
watched one second of CNBC while home in Dallas. Had no time. The first part
of the day was spent dealing with GATA matters which I cannot get into at
this point in time (don’t bother even asking me). Then, from 10:30 to
2:30 I spent a delightful time with Emilya Khatskevisch, a Russian TV journalist from San Francisco,
and Alexander Sasha Burkative, another Russian and
an Event Videography guy who was the cameraman (also from San Francisco).
Both came to Dallas for Channel 1 TV in Russia, formerly (love this one), The
Television Channel for The Soviet Union. It has been in business since the
1950’s and is the equivalent to NBC or CBS here in the States.
The interview is about a documentary Channel 1
is doing on gold and the dollar. It was a very long interview and Emilya asked about 30 questions, which were quite good.
She said this was her best interview. I don’t mind mentioning this
after being forced to super speed my 5 minute delivery before the CFTC. She
also said that "GATA is famous in Russia." Again, how bizarre
… the mainstream financial market press in the US won’t even
mention that we exist.
Emilya was very impressed when I showed her a four page
story in one of the most respected Russian monthly magazines which featured
GATA, with my picture and our GATA painting front and center. It was in 2002.
It’s only been 8 years since that big spread and the US financial
market press still won’t mention our name. What a joke!
Just so you know that what I am relaying to
you is not GATA hype, my good friends Jim Smith and Bill Laggner
(both highly successful money managers here in Dallas) were here for the
entire interview. We all went out to lunch at Villa O afterwards. It was most
enjoyable. I asked Emilya if she would have the
producers contact GATA when the show goes live, and, if possible, to sent us a recording of the program.
-END-
As far as GATA and the Chinese go, it is laid
out in this running MIDAS commentary over the past many years. As you will
read, GATA was on the Chinese, as they were on to us, many years ago…
September 4, 2011 - Gold $1884 - Silver $43.25
MIDAS SPECIAL - WikiLeaks/US
Embassy In Beijing Price Suppression Cable/China/GATA On The Move In Hong
Kong And London
This goes in the You Can’t Make This
Up category. First, from my Friday MIDAS commentary:
*There is increasing talk of a gold standard.
But so far none of the discussion has focused on whether the central banks
still have anywhere near the gold they say they have. GATA has long stated
they have less than half the gold the World Gold Council claims they do.
What a fiasco when the investment world learns
what GATA believes is surely the case. There is no telling what the price of
gold will do as this scenario unfolds. How ironic that the Chinese and
Russians have been following GATA, and continue to encourage gold ownership,
while the US financial market press ignores us, not even allowing our views
to be presented to the American public.
*The bit about the Russians and Chinese is not
poppycock. The number two Russian central banker spoke about GATA at an LBMA
conference in Russia in 2004…
10:13p ET Sunday, October 3, 2004
http://www.lemetropolecafe.com/pfv.cfm?pfvID=4133***
And then key economic consultant to
Russia’s President Putin, Andrey Bykov, attended our Gold Rush 21 conference in The Yukon
in 2005 and our London Gold Rush 2011 in August. Several of us in the GATA camp
were part of THREE conference calls years ago with the Chinese Investment
Corporation, one of the Chinese sovereign wealth funds.
Never get tired of watching the 2 minute+
trailer of Gold Rush 21 which gives some insight into what Andrey Bykov took back to
President Putin and The Russian Central Bank:
http://www.gata.org/node/20
THE PRICE OF GOLD EXPLODED IMMEDITATELY
FOLLOWING BOTH CONFERENCES!!!
***
Twenty-four hours later GATA's Chris Powell
sends out the following missive:
FLASH: China knows about gold price
suppression, and U.S. knows China knows
Submitted by cpowell
on 03:33PM ET Saturday, September 3, 2011. Section: Daily Dispatches
6:47p ET Saturday, September 3, 2011
Dear Friend of GATA and Gold:
China knows that the U.S. government and its
allies in Western Europe strive to suppress the price of gold, and the U.S.
government knows that China knows, according to a 2009 cable from the U.S.
Embassy in Beijing to the State Department in Washington.
The cable, published in the latest batch of
U.S. State Department cables obtained by Wikileaks,
summarizes several commentaries in Chinese news media on April 28, 2009. One
of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News
Journal), published by the Chinese government's foreign radio service, China
Radio International. The cable's summary reads:
"According to China's National Foreign
Exchanges Administration, China's gold reserves have recently increased.
Currently, the majority of its gold reserves have been located in the United
States and European countries. The U.S. and Europe have always suppressed the
rising price of gold. They intend to weaken gold's function as an international
reserve currency. They don't want to see other countries turning to gold
reserves instead of the U.S. dollar or euro. Therefore, suppressing the price
of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role
as the international reserve currency. China's increased gold reserves will
thus act as a model and lead other countries toward reserving more gold.
Large gold reserves are also beneficial in promoting the internationalization
of the renminbi."
It's hard to believe that, two years later,
China is still leaving so much of its gold with the Federal Reserve Bank of
New York and the Bank of England when even little Venezuela has publicly
figured out the gold price suppression component of the Western fractional
reserve banking system and is attempting to repatriate its gold from the Bank
of England and various Western bullion banks:
http://www.gata.org/node/10281
http://www.gata.org/node/10286
It is already a matter of record that China
dissembled about its gold reserves for the six years prior to the public
recalculation of its gold reserves in April 2009 that prompted the commentary
in Shijie Xinwenbao. At
that time China announced that its gold reserves were not the 600 tonnes it had been reporting each year for the previous
six years but rather 76 percent more, 1,054 tonnes:
http://www.gata.org/node/9545
ZeroHedge, which seems to have broken the story of the
Beijing embassy cable this evening, comments:
"Wondering why gold at $1,850 is cheap,
or why gold at double that price will also be cheap, or, frankly, at any
price? Because, as the following leaked cable explains, gold is, to China at
least, nothing but the opportunity cost of destroying the dollar's reserve
status. Putting that into dollar terms is, therefore, impractical at best and
illogical at worst. We have a suspicion that the following cable from the
U.S. embassy in China is about to go not viral but very much global, and
prompt all those mutual fund managers who are on the golden sidelines to dip
a toe in the 24-karat pool."
The ZeroHedge
commentary can be found here:
http://www.zerohedge.com/news/wikileaks-discloses-reasons-behind-chinas-...
In addition to fund managers throughout the
world, this cable may be of special interest to the gold bears CPM Group
Managing Director Jeff Christian, who says he consults with most central
banks and that they hardly ever think about gold, and Kitco
senior analyst Jon Nadler, who insists that central banks have no interest
whatsoever in manipulating the gold price.
In fact, of course, gold remains the secret
knowledge of the financial universe, and its price is actually the
determinant of every other price and value in the world.
The Beijing embassy cable can be found here:
http://cables.mrkva.eu/cable.php?id=204405
And, just in case, at GATA's Internet site
here:
http://www.gata.org/files/USEmbassyBeijingCable-04-28-2011.txt
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
So much that can be covered here, but first
and foremost, GATA’s credibility and proof of our understanding of the
real gold market (one not reported on by the mainstream gold world, Planet
Wall Street, and the financial media) just took another giant leap forward.
We have been all over the Chinese buying gold story for MANY years, having
reported them buying secretly via intermediaries from our STALKER source.
It is quite intriguing and represents
GATA’s track record of how we have nailed what was really going on in
the gold market all these years, while being disparaged by the mainstream
gold world and our critics. See for yourself:
April
24, 2009 - Gold $913 up $7 - Silver $12.92 up 12 cents
GATA’s Credibility Soars On China Gold
Buying News
GATA’s credibility took another leap
forward this morning when China announced it has increased its gold reserves
to 1,054 tonnes from 600 tonnes.
For years and years and years GATA has claimed that the gold world
establishment has failed to account for surreptitious gold lending operations
by The Gold Cartel to suppress the price. For there to be greater gold supply
hitting the market, there had to be greater demand to satisfy this
undisclosed supply. As a result of Frank Veneroso’s
brilliant supply/demand work in years past, we mentioned that one of the
demand areas, that the likes of a GFMS was not accounting for, was China, and
that someday their stealth buying would be reported. Voila…
China gold reserves apparently doubled
HONG KONG (MarketWatch)
-- China has added to its gold reserves and now holds 1,054 metric tons of
the yellow metal, according to a Friday report by the Xinhua News Agency,
which cited comment by Hu Xiaolian, head of the State
Administration of Foreign Exchange.
Hu said that China's gold reserves had risen
by 454 metric tons since 2003 and that the total was being reported to the
International Monetary Fund as per the organization's rules.
A Dow Jones Newswire report said the figure
cited was nearly double China's reported gold reserves as of the end of last
month, but noted that it wasn't clear which gold reserves Hu was referring
to.
She said China's gold reserves now rank fifth
in the world among nations which publicly disclose their holdings.
Analysts said China bullion buying reflects
efforts to diversify their nearly $2 trillion stockpile of foreign exchange
reserves.
"Chinese officials have been increasingly
vocal about their concern on the U.S. dollar and the U.S. bailout policies of
late, and have actively been seeking to diversify into other assets,
especially commodities," said Martin Hennecke,
an associate director with Tyche Group in
Hong Kong…
-END-
To say that this revelation is a big deal is
an understatement … for a number of reasons…
*It is more evidence that various central
banks are increasing their gold holdings, in contrast to a number of western
banks which have been selling for more than a decade.
*China’s move debunks Planet Wall Street
and other western central bankers that gold is a barren asset and not worth
owning.
*And it enhances the notion that gold is a
valuable reserve which will encourage other central banks to follow
China’s lead.
*It surely will spook some of the sheeple central bankers who have foolishly dumped their
country’s gold reserves at bargain basement prices … especially
at a time when the West is looking at one financial crisis after another and
the world’s major currency reserve, the dollar, is looking very suspect.
A number of them are unlikely to press for further bullion sales from their
countries’ reduced reserves.
*The likelihood of China continuing to build
its reserves is extremely high. They were secretly building their gold
reserves BEFORE the latest financial crises. If this was the Chinese mindset
then, what must it be now? As is, their percentage of gold reserves is still
on the very low side.
*Because of what the US is doing with our
bailouts and fiscal deficits, the US dollar is surely on a precipice, thus
China must be looking to accumulate more gold. Therefore, this is not a sell
the news market announcement. It is just the opposite. It is a clarion
call to buy physical gold.
*That clarion call will not go unheeded by the
sophisticated big money in the world.
*This is a major new headache for The Gold
Cartel.
Derrick sends us some retro on China/gold
which was brought to your attention years
ago…
China's forex
watchdog faces dilemma on expanding gold reserves
From Xinhua News Agency
Monday, December 26, 2005
http://news.xinhuanet.com/english/200512/26/content_3971982.htm
SHENZHEN, China -- To buy or not buy? That's a
question for Chinese foreign exchange authorities. They have been urged to
expand gold reserve since the Renminbi
appreciation, but the decision is hard to make since the gold prices are
rocketing.
Some economists have been appealing to the
State Administration of Foreign Exchange to expand China's gold reserve after
the Renminbi appreciation in a bid to reduce the
country's reliance on the greenback....
***
GATA has been all over the Chinese gold buying
case and we can account for it in our understanding of the true supply/demand
picture. GFMS and the World Gold Council CANNOT!
And then to shed light on the MIDAS analysis
and what lies ahead…
Bill,
I reproduce the following from a Financial Times article this morning
declaring that China's gold reserves have officially been revised to 1,054
tons from 600. You have long held the view that China was buying gold through
intermediaries and would eventually disclose part or all of these activities.
It is the end quote I append that caught my eye:
"Hou Huimin, vice general secretary of the China Gold
Association, said China should build its reserves to 5,000 tonnes.
"It’s not a matter of a few
hundred, or 1,000 tonnes. China should hold more
because of its new international status, and because of the financial
crisis," he said. "The financial crisis means the US dollar’s
value is changing fast, and it may retreat from being the international
reserve currency. If that happens, whoever holds gold will be at an
advantage." (emphasis added)
Thought you might be interested.
All my best to you and your health, Brad
And here’s a big tip o’ the hat to
our STALKER source who nailed this one, beginning
back in 2003, which just happens to be the year the Chinese now admit they
started buying.
Doing a Café search, I have yet to find
the initial presentation to The Café ... but the bottom line is our
source went to Phoenix for a meeting with six others in 2003. Our source was
there to act as a gold buyer in the future. The person who held the meeting
spoke FROM BEHIND A SCREEN, as he did not want to disclose his identity.
While speaking perfect English, our source thought at the time he might be
Chinese and did not wish that to be known.
Our STALKER source called today and I could
almost see the smile on his face through the phone. He reminded me of another
tip, i.e. it was Chinese doing the buying, and he reported it was going
through Australian banks, which have a longstanding relationship with the
Chinese.
It is with great pleasure to bring MIDAS
commentary to you re the Chinese/STALKER from more than half a decade
ago…
September 10, 2003 - Gold $379.70 down $1.80 -
Silver $5.22 unchanged
The Stalker
…Could any market trade more predictably
than gold has the past month? Every time gold rallies sharply and early in a
given day, it is capped by The Gold Cartel, sold off later in the trading
session, brought down early that evening in overseas trading, and then is
pressured all the next day by the same cabal. Over and over we see the same
trading pattern.
You see it, I see it, and SO MUST the $4.6
billion buyer, which MIDAS characterized in general as being around some $40
ago. It seems to me this "gold buying group" is playing with The
Gold Cartel. They know the cabal’s drill as well as
we do and probably devised a trading plan to take them on, not fight
them too hard on given days, and then overpower them.
This "gold buying group" must know
what GATA knows, in that the cabal has a serious vulnerability, or Achilles
Heel, when it comes to the physical gold market:…
-END-
September 11, 2003 - Gold $379.30 down 40
cents - Silver $5.30 up cents
Dramatic Gold Day / Silver On The Move / Both
Have Fireworks Potential
…Today's action was very supportive of
MIDAS' notion there is a Stalker ("gold buying group") out there
taking on the corrupt Gold Cartel. They waited for Goldman Sachs to strike, then attacked, sending gold $7 off its lows. Dramatic it
was. This is a big deal. Other traders will see how easily gold came back
after filling the gap and will encourage them to get long, especially since
the gap was filled. The huge open interest also suggests a significant move
is coming. Gold’s startling comeback suggests that move is going to be
one which takes the price MUCH higher….
-END-
September 19, 2003 - Gold $381.10 up $4.80 -
Silver $5.25 up 2 cents
The Stalker Strikes With Another Huge Gold Buy
Order!
…Gold came in stronger than expected on
the Comex opening, which is almost always a very
constructive development. It left a $1 gap and quickly shot up all morning,
topping $383 at one point. Then the requisite Gold Cartel $6 price-capping
rule went into play. That was all she wrote. The cabal regrouped and held
gold in check the rest of the trading session and then did their requisite
slam, knocking gold down a buck ON THE BELL.
These no-good low-lifes
are pitiful. Ah for the day when we can get our stretchers out, pick them off
the mat, and then dump them in the sewer!
The big news is for Café members only.
I received a call from London about The Stalker and learned a bit more about
this "gold buying group." Two goodies for you:
*In addition to the $4.6 billion order, The
Stalker is buying well in excess of another billion dollars
worth of bullion and gold coins. The MIDAS analysis over these past
months of huge new buying interests entering the gold arena looks better by
the day.
*The orders are emanating out of New Zealand
and Australia. My source believes it is Asian money and most likely CHINESE!
This is wonderful news as it would mean the
Asian (Chinese) gold buy program is competing with Indian, Turk and Arab
buying. Put them all together and it is easy to comprehend why The Gold
Cartel has not been able to flush out the massively long specs.
The Eastern buyers are always there on dips
competing against one another for a diminishing supply of gold.
It also explains why gold has been moving up
in price with a corresponding, but lagging, move in
the dollar. Gold is leading the way and doing so for the reason John Brimelow and I have articulated for so long. The key to
the gold price is the surging physical gold market taking on the corrupt and
devious Gold Cartel…
-END-
December 23, 2003 - Gold $410.65 up 55 cents -
Silver $5.71 up 2 cents
A STALKER Of A Gold/Silver Tale For Christmas
Time
…As Café members have been made
aware, the Eastern gold buyers have additional competition due to the
enormous physical market buying by THE STALKER ("gold buying
group"). Without getting into many details, I want to stress THE STALKER
is real. My source’s good friend has attended a meeting with this
"gold buying group," or his agent. I say "or" because THE
STALKER is very secretive and does not want to be known publicly, even to the
sellers from whom he is buying.
Both my source and I strongly believe the gold
buying is of Chinese origin…
-END-
January 5, 2004 - Gold $423.80 up $8.60 - Silver
$6.19 up 27 cents
Gold ($423.80) And Silver ($6.19) SOAR!
…*THE STALKER input has been incredible.
Every time I get word this "gold buying group" is in the market,
gold moves higher. Just as I was writing this, I received a phone call from
"Mike," my STALKER source. He tells me THE STALKER was in the
market today and they are going after $1.4 to $1.6 billion worth of gold in
the near term…
-END-
January 15, 2004 - Gold $408.30 down $13.10 -
Silver $6.19 down 21 cents
Ouch! Gold Cartel Wins A Battle
…Good news! Just got off the phone with
my STALKER source. There was an unscheduled phone conference this afternoon
with THE STALKER’S US buyers. They have a NEW order for $800 million to
$1.2 billion to be completed between now and March. 72 tonnes
of new gold buying is nothing to sniff at! The orders are still coming out of
Australia and my source continues to believe they are for mainland
China…
-END-
January 28, 2004 - Gold $414.60 up $4.90 -
Silver $6.60 up 7 cents
Silver Closes At Six-Year High/Gold Charges Up
$5/Gold Share Massacre Orchestrated
..In my various presentations and public
commentary at the Vancouver conference I stressed the importance of what was
going on in the physical gold/silver market and laid out what has been
presented to Café members, including John Brimelow’s
unique and extremely valuable work. There was no one else at the conference
doing so. While most conference presenters stressed the weak dollar as the
most important gold factor, I stressed it was the surging physical market.
In that regard, I learned this morning THE
STALKER (probably China) just completed the last bit of its $6.8 billion
order. NOW, THE STALKER is working on its additional 800 million to
$1.2 billion dollar gold order (brought to your attention recently). I might
know more on this on Friday.
To give you some idea of how significant this
is, Norway just reported they sold 16 tonnes of gold in January (see below) and plan to dump
another 17 tonnes of bullion, which will clean them
out. The Gold Cartel and friends jump up and down about more central banks
selling their gold and make a big deal how negative it is. What The Gold
Cartel fails to tell the press and their clients is who is BUYING gold and to
what extent. Can they all be so uninformed?…
-END-
February 24, 2004 - Gold $403.90 up $5.70 -
Silver $6.59 up 13 cents
Silver and Gold Pop Very Nicely / $6 Rule
AGAIN
…Some input from a bullion/coin dealer
who has been in the business for 40 years. He has not seen the physical gold market
this tight in two decades. The physical market is in a bit of a disconnect with the price-rigged Comex.
Silver is also extremely tight according to my source and only trades in size
at a PREMIUM. You cannot buy a decent amount of physical silver without
paying up. Wait until next month!
Some STALKER feedback. We have confirmed the
buyer is from the Far East, in all probability Chinese, and they still have
$1.5 billion of gold to buy. We also know why they are buying. This is a big
picture trade, not a short-term speculation. The gold they are accumulating
is going into deep storage and not coming back into the market on rallies.
The reason is these "Chinese" fear a
complete debacle in fiat currencies in the next couple of years…
-END-
That’s enough for now. You get the
picture. The GATA camp was right on the money about Chinese gold buying while
there was nary a peep about it from the mainstream gold world, or from the
big shot bullion dealers on Planet Wall Street.
***
Going to soak the latest China news re GATA
for all it is worth, have some fun with it, and bring more of what we said
two years ago to the front and center:
September 3, 2009 - Gold $996 up $19 - Silver
$16.26 up 91 cents
Gold, Silver SOAR/Sudden Talk Of The
Town/China, GATA And Gold
Ask and ye shall receive! Both gold and silver
gapped up higher and then made a run for the upside as the day wore on.
What a difference a day makes. On Tuesday gold
was off most everyone’s radar screens, including a number of former
Café members. Despite going up NINE years in a row, tedium had set in
on gold’s inability to perform up to expectations based on financial
events … courtesy of you know who. The general public and pundits lost
interest in the gold story. It’s fascinating, as mentioned here for months,
how gold makes its boldest moves higher when investors aren’t paying
attention.
Yet by yesterday afternoon gold was suddenly
the talk of the town, lighting up the CNBC and Bloomberg scoreboards …
and there was tons more talk all day today. Bulls came out of the woodwork
and one clueless Muppet after another offered an opinion why gold was the
place to be. PRICE ACTION MAKES MARKET COMMENTARY. Most of the opinions were
one day thought-outs … coming up with the same reasons why gold is so
bullish which have been in place all summer. And naturally, not ONE mentioned
the real reason gold is on the move: The Gold Cartel is gradually losing
control of their rig.
However, one solid reason given for
gold’s lurch to the upside is CHINESE buying. Those pundits citing the
Chinese as formidable buyers are right on the money…
In Currencies: The early chatter was all about
the recent moves in metal prices (see commodity section below), particularly
gold. Speculation mounted that perhaps pressure on the Chinese state-controlled
organizations to dump dollars in favor of more concrete assets like gold were
swirling among dealing desks. Thus the USD's tone was subdued as gold hit
fresh 3-month highs towards $990/oz. The renewed chatter of Chinese reserve
diversification will add to the dollar supply and also reinforce the gold
tone.
In commodities: Dealer chatter circulating that recent move in metals might
be attributed to Chinese Sovereign Wealth Fund diversification (complemented
by selling USD) . There were numerous comments from
Chinese officials made in Q4 2008 on this topic. Back on Dec 16th the
Ministry of Industry & Information commented that China sought to
increase reserves of strategic materials. Back on Nov 18th China's PBoC was considering raising its gold reserve by 4K tons
and the prior day (Nov 13th) the HK Standard reported that China might seek
to buy gold in a move to diversify its currency reserves and the article
added that China currently holds about 600 tons of gold and could increase
this amount to as much as 4K tons.
http://www.fxstreet.com/fundamental/analysis-re
ports/european-market-update/2009-09-03.v02.html
-END-
…BUYING THE FARM
Chinese sovereign wealth fund dumping dollars
for strategic investments like gold
Reports suggest that China's main sovereign
wealth fund and other state entities are under pressure to invest in
strategic Western assets as the country tries to offload its dollars for
firmer-based wealth including gold and oil.
Author: Lawrence Williams
Posted: Thursday , 03 Sep 2009
LONDON -
Several reports are coming out of China that
there is pressure on state-controlled organisations
- notably the country's main sovereign wealth fund, China Investment
Corporation (CIC) to rapidly build investment in non-Chinese enterprises.
While the CIC itself, with apparent access to some $300 billion in funds -
and the possibility of more from the government - may be concentrating on
hedge funds and other investment entities, there is another sector for
Chinese state-owned companies looking at major investment in commodities.
Indeed with the funds available as China seems to be dumping its US dollars
in favour of more concrete assets, virtually no
minerals sector is safe from Chinese participation.
http://www.mineweb.com/mineweb/view/mine
web/en/page67?oid=88400&sn=Detail
-END-
Veteran Café members know that MIDAS
has been jumping up and down about China since 2003 when their buying
commenced and especially as of last April when they announced an increase in
their gold reserves of 460 tonnes. You also know
that GATA has had THREE conference calls with the Chinese Investment
Corporation since April of 2008. While the mainstream gold world and US
financial market press won’t give GATA the time of day, The Chinese and
Russians (Key economic consultant to President Putin, Andrey
Bykov, and the Russian Central Bank) have gobbled
up our stuff. Thus, they know what the gold market is all about and they know
where the price is going and WHY! But Planet Wall Street? … out to lunch.
In addition, over the past two weeks I heard
from TWO reliable sources the Chinese intend to buy MANY hundreds of tonnes of gold in the years ahead. So all this Chinese
gold smoke is for real. There is a fire behind the smokescreens and all the
chatter about China and gold is for good reason.
Gold is the talk of the town in Hong Kong too.
From a fellow Café member in Hong Kong last night…
Dear Bill,
In the Hong Kong Chinese newspapers and in the South China Morning Post,
there are articles reporting that a new storage facility for gold is now open
at Chek Lap Kok, at Hong
Kong’s airport. According to these articles, the Hong Kong
government’s gold bars stored in London will be shifted to Hong
Kong’s new storage space at the airport by the end of this year. (One
wonders why it should take so long to shift the gold)
The Ming Pao Newspaper, which is in Chinese,
reports that the the Hong Kong officials
responsible for the facility are discussing ways of cooperating with the
Shanghai Gold Exchange. Because of the foreign exchange rules and
restrictions in China, gold can not be as freely moved
in and out of China as in Hong Kong. Therefore, Hong Kong may act as one
facility for the delivery and storage of gold bars for the Shanghai Gold
Exchange.
Usually I send you articles for the Standard but there in
no article on this story in that journal. I do not have a subscription to the
SCMP so I can not send you the full story. However,
below is the link to the SCMP article that is in English.
Best regards,
Carolyn
-END-
Four days later I sent the following MIDAS
commentary to all the financial media I could think of (not one responded):
9/8 GATA MEDIA SPECIAL - The Reason for
Gold’s Imminent Price Moon Shot? It’s a Simple Supply/Demand
Story.
Oh well, GATA is used to being ignored and
abused … part of the territory. But, perhaps that is all about to
change, thanks to the efforts of Chris P. After the Cambridge House
investment conference in Toronto on September 14 and 15, he is off speak at
the largest investment conference in Asia, one hosted by actor George
Clooney. Then, it will be London in which he is the featured speaker at the
Pi Capital conference … sandwiched between featured speakers
former US President Jimmy Carter and the renowned George Soros. GO CP!…
Is GATA suddenly becoming almost respectable?
Submitted by cpowell
on 09:51AM ET Sunday, September 4, 2011. Section: Daily Dispatches
1:02p ET Sunday, September 4, 2011
Dear Friend of GATA and Gold:
Thanks to a friend met in London just after
GATA's Gold Rush 2011 conference there last month, your secretary/treasurer
has been invited to affect some respectability and speak at a couple of
financial conferences well outside the usual precious metals circuit.
The first is the CLSA Investor Forum in Hong
Kong from September 19-23, said to be the largest investment conference in
Asia. Host of this year's conference is to be the actor and human rights
advocate George Clooney:
https://www.clsa.com/about-clsa/media-centre/2011-media-releases/clsa-to...
The conference is open only to CLSA clients.
Then on October 10 your secretary/treasurer
has been invited to address the weekly Pi Capital conference, which, the
previous week, will be hearing from former President Jimmy Carter and, a
couple of weeks later, from fund manager George Soros:
http://www.picapital.co.uk/events.aspx?MasterId=176
Some current or present government officials
with responsibility for the British end of the gold price suppression scheme
may be in the audience, so it could be interesting. But this too is a
members-only event.
That GATA suddenly should be welcome, if only
tentatively, in such circles may be construed as evidence that the gold price
suppression scheme is beginning to escape derision as mere "conspiracy
theory" and starting to seem at least plausible, probable, or even fully
documented to people in a position to act on the knowledge.
In any case GATA has come a long way since its
incorporation 12 years ago. If you're encouraged by our progress and are
inclined to help sustain our work, please consider making a donation:
http://www.gata.org/node/16
We promise to try to keep making trouble with
it. Remember that the World Gold Council, which presumes to speak for both
the gold mining industry and gold investors, is said to have an annual budget
of more than $60 million, raised from assessment against the mining companies
that are its members, and most of that just goes for hanging out with
beautiful young women modeling expensive jewelry. (Somebody's got to do it,
we suppose.) But it's not merely envious to note that this does little for
the cause of establishing free markets in the monetary metals, even as GATA,
having no regular income, has no annual budget. We sustain ourselves on what
our friends can provide irregularly.
On the other hand, maybe the gold price
suppression scheme will blow up in advance of the Hong Kong and London
conferences and we can move on to trying to prove something else -- maybe
flying saucers or Bigfoot. Maybe that would get us into The Wall
Street Journal or The New York Times at last.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
***
As you can surmise from all that discourse,
the Russians and Chinese have known what GATA knows for some time and have
acted accordingly … and did so very secretly for a number of years. As
the reasons to own gold continue to mount, there is no reason to believe
their gold buying will cease anytime soon, especially as the Chinese in
particular encourage their citizens to purchase gold, and various exchanges
have precious metals exchanges have been popping up all over the place in
Asia.
You might want to keep all of this in mind
when the price of gold sells off, and one gold pundit commentator after
another predicts the demise of the gold bull market, and that it is a bubble
popping (even though the average US citizen can’t even spell gold yet).
While these pundits are negative, the Chinese and the Russians are saying, "Thank
you very much," on the dips and buying.
It just might be my long held $3,000 to $5,000
price prediction might be too conservative.
Bill Murphy
Chairman
Gold Anti-Trust Action Committee
PS:
GATA is not only a think tank group that talks
the talk, we have been WALKING the WALK for more
than a decade. Besides speaking at various conferences all over the world, we
have held four of own international conferences in an effort to get the truth
out there to the investing public about the gold and silver markets …
to counter the heinous activities of The Gold Cartel.
The four international GATA conferences:
*The GATA African Gold Summit in Durban, South
Africa on May 10, 2001, was attended by 5 sub-Saharan African nations, the
South African Reserve Bank, leading SA gold producers, the South African
unions, etc., - an event that was featured on SABC television.
*On August 8th and 9th 2005, GATA hosted Gold
Rush 21 in Dawson City, Canada, a historic conference held in the Yukon to expose
the manipulation of the gold market. One hundred delegates attended from 14
countries, including Andrey Bykov,
an economic consultant to Russian President Vladimir Putin.
*Then, on April 18, 2008 it was The GATA Goes
To Washington conference in Arlington, Virginia. 180 attendees came from 17
countries for the gathering. The conference showcased GATA’s FOIA
efforts to learn the truth about US gold reserves from the Fed and US
Treasury … which led to a lawsuit against the Federal Reserve System in
The United States District Court For The District of Columbia.
*Finally, in August of 2011 GATA hosted an
international precious metals conference at The Savoy Hotel in London to
expose the manipulation of the price of gold and silver. Four hundred people
attended from 38 countries. Many of the attendees said it was the
"finest conference" they ever attended.
GATA intends to win the day in our efforts to
expose the manipulation of the gold and silver markets. We have been
effective so far thanks to the generous contributions of so many. Nothing has
changed in that regard. CP and I intend to make the lives of the honchos of
The Gold Cartel as miserable as possible. We need your financial support to
make that happen.
Most importantly, for you the reader, as the
surreptitious activities of the gold and silver markets are exposed, the
prices of gold and silver will go bonkers. AND, the gold/silver shares will
go ballistic too. If I might say, this is one you can take to the bank: TEN
BAGGERS in the decimated gold/silver exploration/junior share sector will be
commonplace. The timing of this coming wealth bonanza has been very tricky
and overdue. BUT, it is coming ... and is the reason WHY, you:
GATA BE IN IT TO WIN IT!
Bill Murphy is the editor of “Le Metropole Café”, in which he analyses daily
the Gold Market as well as current economic affairs. If you would like to become a Trial
member and take advantage of the "free two week 'get acquainted' offer",
please target="_blank" click here
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