In the last couple of
MIDAS commentaries I have done what I could to insult the mainstream gold world
as much as possible for their ineptness and cowardly approach to dealing with
the blatant manipulation of the gold price. Might as well make it a Trifecta
and up the ante at the same time.
What is so grating is
that the mainstream gold world dolts refuse to acknowledge the obvious modus
operandi of The Gold Cartel. The cabal bums are so organized they repeat
their manipulation techniques over and over again, like the $6 Rule � like
taking gold down in the Access Market IMMEDIATELY after a concerted price-capping
effort during the day.
Last evening Dallas time was a
perfect example. Gold was shoved 80 cents to a buck lower not long after gold
closed on Comex. The dollar then strengthened a tad later on. When I woke up
this morning, the dollar was slightly lower, yet gold had weakened further,
called down $1.40 going into the Comex open.
Contrarily, the S&P
futures contract almost ALWAYS opens higher after a decent sell-off. Even
Richard Russell has noted how the S&P�s are almost always called higher
these days and have been for years now. The Gold Cartel is the one at work
suppressing the price of gold. It is The Working Group on Financial Markets
(PPT) who is propping up the US
stock market and influencing its price action.
On that note Goldman
Sachs and JP Morgan Chase pressed bullion right off the bat this morning,
however, sizeable orders from physical market buyers showed up as the price
took out $433. After a brief rally, The Gold Cartel attacked again, following
up on their price-capping selling of the past week, even though both the
pound and yen were modestly higher. Today�s battering had nothing to do with
the dollar. It was all about The Gold Cartel forcing the gold price lower
because the euro gave back a piddling of its recent gains.
Today�s outrageous
manipulation is a classic example of what I have conveyed to Caf� members for
years. The key to the gold price action is how The Gold Cartel uses the
action of the dollar to rig the price. They go into capping mode on various
gold up days in an organized un-American fashion, and in violation of all the
US
anti-trust laws. Then, they simultaneously strike to take the price lower
when the word goes out from cabal headquarters to do so. Gold has traded this
way for years. Can it be any more obvious? If you can�t see what is going on
here, you couldn�t have the brainpower of a gnat or a "grapefruit."
Perhaps I am being too kind? Meanwhile, the fact that commodity prices have
gone berserk is completely ignored by the dullards in the mainstream gold world.
PRICE ACTION MAKES MARKET COMMENTARY. Seems not much matters anymore to US
financial markets. US
deficits, crummy dollar, soaring real inflation, etc. What does matter is
spin and market manipulation.
Gold and silver traded
like heavy stones sinking in water the entire trading session. Rallies were
non-existent. Only cash market pricing, as gold sank towards $430, saved the
day. The gold open interest rose, as fully expected, to 287,801, up a
sizeable 4271 lots. This reflects spec buying and Gold Cartel selling to cap
the price, as brought to your attention by MIDAS yesterday. Spec longs who
bought after Tuesday morning�s limit up day gold pop are now all losers.
The silver open interest
fell by 3584 contracts to 101,630 as specs ran for the hills, as did mega
long Morgan Stanley. No surprise there either.
The CRB rose once again,
this time a mere .26 to 305.26, even though crude oil, beans, gold, and
silver were lower. Once upon a time, pre-Gold Cartel and its price
manipulation scheme, this chart would have had gold and silver rocketing:
April CRB
http://futures.tradingcharts.com/chart/RB/45The bonds continued their dipsy-doodle,
falling another 6/32 to 112 29/32.
The dollar recouped
modestly, rising .29 to 82.80 and the euro fell .57 to 131.16. The yen bucked
the trend for the day and rose to 104.32.
_______________________________________________________________________________________
The John Brimelow Report
Heavy Turkish buying; Heavy selling by ???
Tuesday, March 01, 2005
Indian ex-duty premiums : $6.18, PM $6.03, with world gold at $434.50 both
times. Comfortable for legal imports. The Reserve Bank has been actively
repressing the rupee, regrettably, from the point of view of gold�s friends.
Turkish imports for
February, posted this morning on the Istanbul
Gold Exchange�s website, were huge. At 29.411 tonnes, they were the third
highest in the 9 2/3 years the Exchange records, despite $US weighted average
prices, according the Exchange, being the 4th highest. February
imports were 11.7% up on January and 35% above Feb �04: $US gold was
down 0.3% and up 4.7% respectively. Turkish Lira prices were -3.2% and +2%.
No doubt this quantity
reflects a powerful response to the effort to break gold down in the first
week of the month: but overall it is clear that the propensity of the Middle East to import gold has shifted. No wonder gold
refused to break $400.
The ECB reported today
that two subordinate Central Banks sold gold last week (a third bought coin);
the net proceeds were E99Mm. This suggests about 9.4 tonnes, the highest this
year. At an estimated 31.7 tonnes, the ECB zone sales in February are about
equal to Turkey�s
imports.
With world gold showing
no resilience this morning, ("�spot gold was well offered by
dealers" � Mitsubishi) TOCOM essentially stepped out of the market. On
volume only equal to 13,014 Comex (-57%) open interest was static (up 338
Comex); the active contract was down 11 yen and world gold went out $1.60
below NY. (Yesterday NY traded 47,718 lots; open interest jumped another
4,271 lots � 13.28 tonnes.)
Yesterday, according to
ScotiaMocatta, gold
"436.10/436.60 in New York and made a
steady climb...A new high for 2005 (437.90/438.40) was posted before drifting
back off on local selling. Selling from overseas sources then started to
weigh on the market causing a sell off�"
The net effect of this
was that it took over 13 tonnes of net buying to raise the gold price $1.50.
In the past four business days, Comex has added 15,570 contracts of open
interest (48.7 tonnes) to add $3.10 to the April contract... Plainly, there
is a large seller about.
The Gartman Letter has
noticed this:
"�there was selling
yesterday at $437-438 which proved quite formidable; however, rather than
direct gold selling we suspect this was simply profit taking correlative with
the strength in the US dollar�. We look for short term support at the
$431.50-433.00 level today and we doubt that that support shall be
broken."
Profit taking, of course,
would reduce, not increase, open interest. As Mitsui-Sydney ingenuously
remarked this morning:
"�offshore buying
meant gold was firm all day, pressuring resistance & some good size
traded. Overnight it was pretty similar, however the flows were lighter. The
question now is, with so much pressure being applied to the topside, what is
holding gold back?"
Gold seems to be back in
the 2001-2004 mode, with successive levels being ferociously defended, but
eventually being overcome by rising physical offtake. That is what the
Turkish data implies. From that perspective, the key development in gold this
year has been the loss of downward momentum developed by the Great
Liquidation of January.
The noted gold bear joins
with a number of commentators � Gartman, Don Hays, various Neoconservative
political writers, to proclaim peace is breaking out in the Middle
East. This observation seems fashionable � or popular - at
present. I doubt he is naive enough to believe it.
JB
_______________________________________________________________________________________
CARTEL CAPITULATION WATCH
As usual the US stock
market rebounded after a spanking. The DOW recouped most of yesterday�s
losses, gaining 64 to 10,830. The DOG did better, jumping 19 to 2071.
Liquidity is the name of the game. At some point reality is going to set in
and this market is going to come hurtling down. Hard to know what will be the
catalyst and when, however, it is coming. Denial and spin only goes so far.
With inflation and interest rates on the rise, corporate profits are going to
be squeezed. The rigging of the gold price to mask the true inflation
barometer in the US
will only go so far in this environment.
Platts:
New York (Platts)--1Mar2005/351 pm EST/2051 GMT
Analysts
were at a loss to explain the decline in gold, even as Iraqui violence
escalated� �END-
These analysts need to
sign up for a www.LeMetropoleCafe.com membership. It would prevent them from
remaining clueless.
_______________________________________________________________________________________
US economic news:
09:59 Jan.
Construction Spending reported 0.7% vs. consensus 0.4%
Prior
reading revised to 1.2% from 1.1%.
* * * * *
10:00 Feb. ISM Prices
Paid reported 65.5 vs. consensus 67.5
Prior
reading 69.
* * * * *
Feb.
ISM Manufacturing reported 55.3 vs. consensus 56.9
Prior
reading was 56.4.
* * * * *
Marsh Has $676 Mln Loss, Cuts
Dividend and 2,500 Jobs - March 1 (Bloomberg) -- Marsh & McLennan Cos.,
the world's largest insurance broker, slashed its dividend and planned
2,500jobs cuts after reporting a $676 million loss from settling NewYork
Attorney General Eliot Spitzer's bid-rigging accusations. -END-
March
1 (Bloomberg) -- Japanese household spending had the biggest increase in nine
months in January and the world's second- largest economy created the most
jobs since 1992, adding to evidence a recession is ending.
Spending by households
headed by a salaried worker rose 8.2 percent from December, seasonally
adjusted, the statistics bureau said today in Tokyo. The economy added 470,000 jobs,
helping the unemployment rate hold at a six-year low of 4.5 percent.
An improving job market
and higher year-end bonuses boosted confidence among consumers, prompting
them to spend more at Takashimaya Co.'s department stores and Skylark Co.'s
restaurants. Japan needs a rebound in consumer demand, which makes up half
the economy, to wean it from dependence on exports and corporate investment
for growth.
-END-
_______________________________________________________________________________________
A Tale of Two CPI Cities:
First, the US spin
version:
U.S. economy still has output
gap-Fed's Moskow
WASHINGTON,
March 1 (Reuters) - The U.S. economy still has excess labor and production
capacity, Chicago Federal Reserve Bank President Michael Moskow said on
Tuesday, adding that oil price rises have yet to spill into underlying inflation.
"My
own judgment is there still are excess resources in the economy, both
certainly on the labor market side and in facilities, plants and
equipment," Moskow told reporters after a speech to a National
Association of State Workforce Agencies forum in Washington.
"So
I personally think there still is an output gap. I think it is closing and
that we are growing at about potential growth, but I don't think it has
closed at this point. But it is something we have to keep monitoring on a
regular basis."
Earlier,
he told the audience oil prices have not yet pushed up prices excluding food
and energy.
"If
you look at that core rate, you have not seen a significant increase in that
core rate over this period when oil prices have gone up," Moskow said.
"Now if it gets to the point where people believe that inflation overall
and core inflation will be higher because of that higher price of oil then
that's a very important consideration for us as monetary
policy-makers."�
-END-
Then, the real version
via a fellow Caf� member professor:
The big-brained guys at
Contrary Investor, authors of some of my most treasured Off-Wall-Street
reading, have taken on the veracity of the CPI and concluded the numbers are
boiled beyond recognition (go figure)...
http://www.safehaven.com/article-2672.htm
What is curious about
this article is they also take on the question that I have found perplexing
for years: Are people who cite the CPI numbers as accurate simply morons? Do
they think we are morons? The Contrary Investors conclude that the
answer is no, but rather some (the Feds at least) are using a "Don't ask
don't tell" policy for convenience. A couple of you prominent folks are
forced to cite bogus numbers: Is there no alternative?
Seems to me that
investors will eventually demand transparency above all else or they will
take their capital and go home (or back to Asia).
Just trying to share good
stuff culled from obscure places with folks who might care (and maybe make a
difference)...
Best regards
Dave
BTW-The smartest guy I
ever met was a bean picker with a third grade education, and some of the
biggest nimrods had PhD's in chemistry. With that said, these Contrary
Investor folks do appear to have strong credentials. (Check out the
blurb at the bottom of the article. It's kind of inspiring.)David B. Collum
Professor
of Chemistry and Chemical
Biology
Cornell University
Which takes us to the
latest development on this CPI controversy:
Bill:
I
figure I can do Moskow one better! If they can spin, so can we....
_______________________________________________________________________________________
News Alert
February
28, 2005
AP
NEWS (Houston)
Renowned
commodity trader Dan Norcini stunned the investing world today when he
asserted that elephants roost in trees. Norcini, famed for his sometimes
bewildering comments, confidently claimed that he had seen a dozen elephants
sitting in the tops of the water oak trees surrounding his estate. So assured
was he, that investors all around the world are now questioning whether he
might be true.
"Norcini is one
strange bird," quipped a pit trader in the S&P, "but he is a
smart guy and anything he says has to be given thoughtful
consideration."
News Alert
March
1, 2005
AP
NEWS (Houston)-
UPDATE
There has been a rash of
sightings of elephants roosting in trees that has left authorities shaken and
dazed.
"Calls are coming
out of the woodwork," commented a deputy sheriff who is a member of a
special task force created to handle the sightings.
The unusual development
began after a famous commodity trader, Dan Norcini, announced that he has
seen the elephants with his own eyes. While Norcini was not available for
further comment, his attorney, Talkem N. TU. Anything, with the law firm of
Doowey, Cheatum and Howe, stated that his client is completely convinced of
the matter and has no reason to fabricate such a story.
End
More from Houston's Dan Norcini:
Bill;
We
keep getting more and more of these reports detailing the squeeze that
manufacturers are under as a result of rising input costs.
Here's another one, this
time its Caterpillar. You had to wonder when they would finally cry,
"Uncle," and hike costs. This is precisely the kind of thing one
should expect to see accompany a rising CRB index and why I believe the deflation
proponents will be proven wrong. Anyone who deals in steel knows all too well
what I am talking about. It is a component in so many different manufactured
goods that it is almost pointless to even attempt to list them - automobiles,
heavy equipment, construction products, military equipment and armament,
etc...
All one has to do is to
simply think about the rising costs associated with soaring base metal prices
and plastics which have their source in crude oil to realize that Caterpillar
is not the exception; they are the rule and a sign of things to come.
It is also the very
reason why the deliberately deceitful comments made by Greenspan, Bernanke
and other various Fed governors such as the one I sent you earlier from
Moskow are so patently absurd.
To assert, as they have
so brazenly done, in the face of a rising CRB index and a soaring PPI (even
in spite of its inadequacy) that inflation is "well anchored" or
"contained" and that the CPI is not reflecting any pass through to end
users by manufactures should strain the credulity of even the most ignorant
of analysts. Yet, that is exactly what we do not see - on the contrary, we
see the stupid lemmings swallowing the the purple Kool-Aid and parroting the
official sector line that inflation is simply not a threat. "How do we
know that?", they confidently assert. "Why just look at the price
of gold. If it were a serious threat, gold would be reacting violently
upward." Meanwhile they shovel the yellow stuff into the market as fast as
they can find it in an attempt to meet the voracious demand and try to keep
it from exploding upward to reflect reality.
Maybe we should pass on
some advice to our friend Dennis Gartman and ask him to do himself and his
hedge fund clients a favor by putting down the Kool-Aid long enough to let
the cobwebs clear from his mind. That and some fresh air might bring him to
his senses.
Dan
_______________________________________________________________________________________
Caterpillar to increase
prices 1-5 percent
CHICAGO,
March 1 (Reuters) - Heavy equipment maker Caterpillar Inc. said on Tuesday it
will increase machinery and engine prices by 1 percent to 5 percent effective
in late spring due to rising costs of steel and other raw materials.
"This
price action, first announced to dealers worldwide this morning, is in line
with general economic conditions and industry factors," the company said
in an 8-K form filed with federal regulators. Caterpillar shares rose 1
percent in morning trading.
Caterpillar
Chief Executive Jim Owens had told Reuters Friday in an interview that the
company might raise product prices again to cover escalating prices for steel
and other raw materials.
The world's largest maker
of construction and mining equipment had raised prices by about 3 percent in
July and another 3 percent in January to offset rising costs.
Caterpillar, based in
Peoria, Illinois, has been deluged with orders in the past year due to the
economic recovery, rising commodity prices and accelerated federal tax
breaks. It has come under fire from investors, however, because it hasn't
been able to translate those sales into profits as quickly as expected due to
production bottlenecks and higher raw material costs�
-END-
_______________________________________________________________________________________
The REALLY big news of
the day came out of Dubai
� not only for GATA but the entire gold world. Read on and and I will comment
why below:
Hello Bill,
we
had the chance for a short shake hands at the New Orleans Investment conference 2 years
ago. Attached is a study about the planned unified GCC currency and gold,
which I wrote for the Gulf Research Council, in case it is interesting for
you.
All
the best from Dubai, Eckart
Dr.
Eckart Woertz
Vice
President Fixed Income and
Structured
Products
CFC
Securities Limited
P.O.
Box 2260
4/F
Al Attar Business Tower
Sheikh
Zayed Road
Dubai,
UAE
The Role of Gold in the
Unified GCC Currency
The manipulation of the
gold market since the Nineties
Various studies have come
to the conclusion that gold is severely underpriced. They expect a gold price
of at least USD 700; some estimates even reach USD 1500 and more. The chosen
approaches are manifold and include comparisons between the gold price and
money supply (M3), long term ratios of the gold price with oil and stock
markets, supply and demand figures in the gold market or the
39- See Al-Alkim, op.cit.,
chapter 3-6.
40- Ugo Fasano and Zubair
Iqbal, "Common Currency. GCC Countries Face Fundamental Choices as they
head for Monetary Union," Finance and Development 39, no. 4
(December 2002), available under www.imf.org/
external/pubs/ft/fandd/2002/12/fasano.htm, p. 2.
______________
hypothetical amount of
gold needed for a reintroduction of a gold cover clause. 41 Although the
liquidity driven stock market frenzy and serious currency crisis in some
emerging markets (Mexico, Asia, Russia) supported the US dollar in the 1990s
and thus reduced the attractiveness of gold, the sell off in gold between
1996 and 2001 that propelled it below USD 260 is highly suspicious, as it
happened during a time of increasing supply deficits in the gold market. This
has led a number of distinguished experts who are affiliated with the Gold
Antitrust Action Committee (GATA) 42 to assume that Western central and
commercial banks have manipulated the gold market since the middle of the
1990s in order to defend the paper dollar standard. Such interference is
quite reminiscent of the gold market interventions in the sixties during the
establishment of the Gold Pool. The evidence collected encompasses
comparisons between different kind of statistics and issuers, historical
probabilities and standard deviations as well as anecdotal material about
more or less obvious efforts to suppress the gold price. While this is not
the place to discuss the material in great detail,43 it is important to be
aware of the basic argument and its implications for the future gold price,
should the paper dollar standard deteriorate further.
Based on 2000 figures,
Frank Venoroso challenges the official statistics of Gold Fields Mineral
Services (GFMS) and the World Gold Council (WGC) and assumes that annual mine
______________________
41- Van Eeden, op. cit.;
Tim Wood, "Gold-oil link all but dead in 2004," (August 10, 2004):
www.mineweb.net /sections/energy/oilgold.htm; H. Reginald Howe,
"Dow/Gold Ratio=1 at 3000$: Don�t Laugh!," under
www.goldensextant.com/ commentary5.html; Frank Veneroso, "Facts,
Evidents and Logical Inference. A Presentation on Gold/ Supply/ Demand, Gold
Derivatives and Gold Loans," (May 2001): www.gata.org/fv.pdf; Bill Fox,
op. cit., p. 18.
42- GATA was founded in
1999, see. www.gata.org.
43- Frank Veneroso,
Reginald H. Howe, Mike Bolser and James Turk have conducted the most
important studies so far. For a thorough compilation, see John Embry and
Andrew Hepburn, "Not Free and Not Fair. The Long-Term Manipulation of
the Gold Price," Sprott Asset Management Special Report, August 2004
under: www.sprott.com.
production (2,568 t),
scrap supply (602 t) and official central bank sales under the Washington Agreement
of 1999 (400 t) are only partly covering an estimated world wide demand of
4,844t. Venoroso thinks that the supply gap of about 1,274 t and the supply
gaps of preceding years have been closed by leased central bank gold. That
leads him to the breathtaking thesis that instead of the officially
acknowledged 5,000 t on lease and swap arrangements, up to 16,000 t of a
total of 28,000 t may have actually left the vaults of central banks.
Venoroso points out that the gold carry trade that started in the 1980s
gradually went out of hand. Thereby, central banks are leasing gold to the
commercial banks for a low leasing rate of about 1%. The commercial banks
sell the gold in the market and invest the proceeds in higher yielding assets
like treasuries, thereby earning a nice spread. As the commercial banks now
have a delivery risk of physical gold to the central bank, they can hedge
themselves against a gold price rise by going long on the derivative markets.
Mining companies, proprietaries trading desks and hedge funds have taken the
short side of these trades. Thus, on a limited base of physical gold, a
gargantuan mountain of derivatives has developed. And this mountain continues
to grow, although mining companies have reduced their hedges dramatically in
recent years.44 To put it in a nutshell, the gold still exists in the books
of central banks as receivables, and on the books of hedge funds and commercial
banks as liabilities. But the actual physical gold itself has long left the
vaults and now hangs around the necks of the women of the world. These women
are the "ultimate longs" in the market while the banking system
stays out in the rain with a gigantic derivative short position of up to
16,000 t.
___________________________
44- It is estimated that
the notional value of derivative "paper gold" is 10 times higher
than yearly physical production and nearly as high as all official sector gold.
H. Reginald Howe, "Gold or Dross? Political Derivatives in Campaign
2000," August 2000, www.goldensextant.com/campaign 2000.html#anchor48727
and Howe, "Hitting the Iceberg," December 20, 2003,
www.goldensextant.com/ commentary 26.html#anchor25233.
At current prices, it is
inconceivable that this short position could be covered. A much higher gold
price would be needed. This, in turn, would not only seriously hurt the
profits of the banking system but would also endanger the already ailing
paper dollar whose liquidity is fuelling the US and world economy alike. This
is why Veneroso, Embry and others assume that an official sector of central
and commercial banks has started to manage the gold price at least since the
plight of the LTCM hedge fund in 1998, which purportedly held a huge
short-position in gold. Occurring trading patterns suggest that apart from
lending physical gold into the market, the gold price is suppressed by
derivative short selling and spread trading. Similar accusations exist in the
case of silver.45
This management will
ultimately fail, as the supply gap will increase rather than decrease.46 Gold
production is expected to decline significantly in coming years as mining
companies reduced their investments in new projects during the last decade of
suppressed prices. As a mining project needs 5-8 years to mature to
production, this will not change anytime soon. Groundbreaking new
technologies that could raise the output drastically like the discovery of
cyanidation in 1887 are not likely. And epochal new discoveries like those in
USA, Australia and South Africa in the 19th
century47 can also not be expected, as nowadays such terra
______________________
45- The case for silver
is even more compelling, as there exists a supply gap since the beginning of
the eighties and there are no central bank reserves. Silver the "poor
man�s gold", played a role in monetary systems until the 19th century
and is also an important raw material in the electronic industry. Its
long-term historic ratio to gold is 1:15, which is way above the current 1:60
and could even lead to steeper rises in price than gold. It remains to be
seen if it could regain monetary importance during the unfolding crisis of
the paper dollar standard, but as its use is not exclusively monetary we
leave it aside here. For the manipulation story of silver, see the various
articles of Ted Butler on www.investmentrarities.com/tbarchives. html. For
silver as an investment case, see Marion Butler, "The Case for
Silver," October 19, 1999: www.goldeagle.com/editorials_99/mbutler101899.html
and various articles on www.silver-investor.com .
46-
Rhona O�Connell, "Gold demand growth outstrips production,"
November 25, 2004, www.mineweb.net/ sections/gold_silver/393445.htm .
47- See Peter L. Bernstein,
The Power of Gold�, op.cit., pp. 219-238.
incognita of mining does
not longer exist. On the demand side, Western investment demand has not even
kicked in yet like it did in the 1970s, while retail demand in important
markets like India, Arabia
and Asia remains stable or is even rising
despite augmented gold prices. Additionally, other central banks than the
Western ones are actually buyers (e.g. China, Russia, Argentina), as they
need to diversify their dangerously one-sided currency reserves.48 That is
especially true for China, which is sitting on a huge pile of USD 500 billion
in currency reserves, while officially having gold reserves of only 1.6% of
that amount (Table 3). Actually there are repeated rumours that in recent
years China may have bought more than the 200 t that it officially
acknowledges, and the reopening of the Shanghai gold market in 2001 after
over fifty years of closure may not be accidental. Finally, Japan has
announced that it may purchase gold as well, in order to diversify its
similarly one-sided currency reserves (USD 800 BN).
The likely outcome is the
current manipulation scheme of the gold price will fail like the Gold Pool in
the sixties. Once it fails, it will be highly difficult and expensive to
accumulate a gold reserve. This is especially true for central banks that
have low gold reserves like those in the GCC countries.
Shrewd women and
unprepared Central Banks: Private and official gold holdings in the GCC
countries�
To
read this special gold report in its entirety, go to:
The Role of Gold Digital.pdf
-END-
Why is this SUCH A BIG
DEAL?
*The last market
manipulation paragraph says it all.
*This report is now
circulating all over the Arab world to the right people, including the Middle East Arab central bankers, the sheiks, the money
manager advisors, etc.
*The report acknowledges
GATA is correct in our basic assertions.
*This report enhances
GATA�s credibility enormously and ranks right up there with the Sprott Report
(http://www.gata.org/SprottPressRelease.html) and the Russian central bank paper (http://www.gata.org/RCBTakesNote.html) read at the LBMA conference last June.
*The report is also a
HOME RUN for GATA as far as Gold Rush 21 (www.GoldRush21.com) is concerned. One of the goals of GR 21 is
to get the word out to the investment world re GATA�s assertions, especially
that half the central bank gold is no longer there. Once the investment world
understands GATA is RIGHT and we know what we are talking about, there will
be a rush for gold like never seen before. This distinguished paper will go a
long way to assist GATA achieving this objective, which in turn, will help
make YOU a fortune.
*Most importantly, this
revealing document by Dr. Woertz details reasons for the wealthy Arabs and
their institutions to load their gold boat NOW. This WILL have a major impact
as far as the gold price is concerned in the weeks and months to come. John
Brimelow reports above on the "huge" gold demand emanating out of Turkey, which
represents Arab gold demand. Wait until they read this report. With $50 to
$60 oil, they have money to burn.
OK, are you happy with
what happened to gold and silver today? Are you happy with what your gold
shares are doing? Are you happy you are being fleeced day after day by a
bunch of crooks? If not, DO SOMETHING ABOUT IT. Shame on you if you have not
called up the gold company CEO�s to urge them to attend Gold Rush 21 �
especially the majors. The more shareholders these CEOs hear from, the more
likely it is they will consider attending. This paper ought to make it a lot
easier for you to persuade them why they should be there. Please send them
all a copy, even if by email. This is a MUST read for every gold company CEO.
Make sure to call them back in a week and ask them their opinion of what is
offered regarding the gold price manipulation in the paper and to back up
their own opinions should they differ.
You
might also let them know that Tami Matsufuji, President of Jipangu and
Japan's "Mr.Gold," is coming all the way from Tokyo to Dawson City
in the Yukon to attend Gold Rush 21. What could be their excuse for not
coming?
You can sit there and
moan and groan about what The Gold Cartel elitists are doing to you, or
effect a CHANGE. Up to you.Not only is the gold demand news positive coming
from the Arab world, it continues to build in India also:
Yellow Metal to be Traded
in Paper Form
Business
Standard, Mumbai
Tuesday,
March 01, 2005
http://www.business-standard.com/smartinvestor/storypage.php?
chklogin=N&autono=182101&lselect=1&leftnm=lmnu6&leftindx=6
The Union finance
minister today announced that the Securities Exchange Board of India (Sebi) and the Reserve Bank of India (RBI)
would work out the modalities for mutual funds to float gold-backed units
which would be traded on exchanges.
These
Gold Exchange Traded Funds (GETFs) will enable households to buy and sell
gold in units for as little as Rs 100.
In
fact, it was Benchmark Mutual Fund which first mooted a scheme of this sort
around three years back but the idea did not find favour with RBI, as it felt
that the prices of gold could be manipulated and it would destabilise the
market. Sebi, incidentally, did not have any problems with the scheme.
Exchange-traded
gold funds are a step in the direction of real estate funds and other
commodity-backed funds.
Ashutosh
Bishnoi, chief marketing officer at UTI Mutual Fund, said, "The
necessary mechanism for this has to be put in place. The first step in this
direction should be to securitise gold as an asset since the funds cannot
hold them in physical form."..
-END-
_______________________________________________________________________________________
Rhody on leasing:
Hi Bill,
Gold lease
rates are still in backwardation, but only in the very near term. The rate curve is still relatively elevated
and flat suggesting continued leasing activity at above average levels.
Silver near
term rates dropped by 25% from .20% to .15%, as did two and three month terms
by .04%. Leased silver is not the source of spot silver price weakness today.
Regards,
Rhody.
http://www.kitco.com/market/lfrate.html
_______________________________________________________________________________________
This
next report on gold is one of the most worthless I have ever read. Most of
the commentary is bullish, yet concludes gold is heading back to $350. What
garbage. I only bring it to your attention because it is circulating all over
and I was asked to comment.
World economy: Commodities - Our forecast for gold
COUNTRY BRIEFING
FROM
THE ECONOMIST INTELLIGENCE UNIT
..In 2005 the gold price
will on average rise by 6% along with a continuing weakening of the US dollar
against the euro. Although much of these gains will be reversed in 2006, gold
will maintain a US$400/oz plus price range. Over the medium to longer term,
the gold price is expected to fall back to trade around US$350/oz, just below
its long-run average price�
Full report
http://www.viewswire.com/index.asp?layout=display_article&doc_id=1348077934
Compare that piece of
junk to that of the paper by Dr. Eckart Woertz in Dubai.
Anecdotal input on gold
demand coming from Joe and Jane in Canada:
Dear Bill, I just want to
tell you how much I enjoyed Monday's Midas, the best and most encouraging in
recent memory. I was especially reassured as I bought some DROOY below a buck
on Friday not completely sure at the time but glad I did in hindsight. Word
is getting around my cousin who is the food and beverage manager at the Barrie country club
tells me that precious metals are being talked about. Also I was at the local
Chrysler dealership and came across a plumbing customer of mine, a retired
successful furniture store owner who told me in passing to invest in Gold,
wow that really made my day, this guy has a network of equal peers and a
daughter who is a federal member of parliament in Ottawa. Yes Bill, I believe
our patience will pay off soon and I am looking forward to the greatest
investment opportunity (especially Silver) in the history of mankind.
Sincerely grateful, Kim.
The gold shares fell as
is to be expected. The XAU lost 1.71 to 97.20 and the HUI gave up 4.80 to
210.52, barely holding 210 support with a 209.97 low.
HUI
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=hui&sid=0&o_symb=hui&freq=1&time=8
The Gold Cartel is making
life miserable for us gold bulls. While their market rigging is often
noticeable, rarely has their price-capping manipulation been THIS obvious for
so many days in a row. Clearly, the cabal is petrified of the price of gold
moving higher when inflation in the US is so rampant. Short-term
anything can happen to the prices of gold and silver. However, the die is
cast. The market manipulating bums are on a short lease:
*with commodity prices on
a scamper and likely to continue to be on one for months to come.
*and with the worldwide demand for physical gold so stout and becoming more
so as each week goes by.
The prices of gold and
silver are going MUCH higher.
GATA BE IN IT TO WIN IT!
MIDAS
_______________________________________________________________________________________
Appendix
Early
feedback on the gold report by Dr. Eckart Woertz:
Bill,
I just read March 1st Midas. The Woertz paper is absolutely sensational. I
have lived in various countries in the Middle East
for 12 years in total. What people have to realize is that gold in the Middle East is part of the culture. When you go to the
shopping districts (Souks) there are rows and rows of shops selling gold.
Their windows are completely yellow with the gold jewelry on display. Middle
Easterners buy gold like Westerners buy electronic gadgets�gold is bought as
presents, wedding dowries, investment, a pick-me-up purchase when feeling
blue etc. You do not have to educate ANYONE in the Middle
East as to how valuable gold is. Even the guy who sweeps the
street hankers after gold. In the West you have a hard job convincing people
that a brick of gold is a hell of a lot better to have than a flat screen TV
or gaggle of Google shares. This report will not be mocked by the Arab press,
or joked about on Arab websites as �conspiratorial propaganda.� This will
fall on fertile ground. This is like Robert Mundell writing a paper saying
�buy Google! it is going to a million dollars per share.� No one would
hesitate because that just fits into the mindset of what an investment should
look like. John Embry�s superb piece �Not Free, Not Fair� was like throwing a
Molotov Cocktail into a huge stockpile of asbestos. This piece by Woertz will
be like throwing a Molatov Cocktail into a store of dynamite.
I have just marked March 1st
on my calendar as an historical day in this unfolding bull market.
Cheers,
Adrian
Mover Mike long term
subscriber of LeMetropoleCafe.Com posted this critique of Lawrence Kudlow today.
Tuesday, March 01, 2005
The Truth, Lawrence
Kudlow. The Truth!
And here's the dumbest
quote of the day, courtesy of Lawrence Kudlow of Kudlow's Money Politic$ Noting that the Commodity Research Bureau
index of raw material futures has not been at these levels since 1981 and
then we had 10% inflation and 2% today
Yes,
sometimes commodities flash inflation-warning signals. But other times commodities
are better used as indicators of the global economy. Today it is the world
economy that is placing higher raw material demands on commodity prices, not
inflation.
If demand is causing an
increase in commodity prices, those increased prices get passed along in all
uses of that commodity and we experience rising prices. If the price of oil
goes from $25 per barrel to $50 per barrel everything made from oil is going
to reflect that raw material. Now, technically inflation is really an
increase in the amount of money in circulation. Greenspan has increased the
money supply at a faster rate than any of his predecessors, credit creation
has exploded, yet the government tells us there is no inflation. Rather than
deny the truth, Kudlow wants us to believe something silly. He should ask
himself who benefits with official inflation at only 2%? He should look to
the prime indicator of inflation, Gold, and ask why is the government
deliberately capping the price. He should ask why gold can only go up $6.00 in
a day, but can fall any amount. Who benefits by keeping our alarm bells
silent. You and I buy things every day and we know the truth. We are
experiencing rising prices and they are rising faster than 2%.
Mike Landfair
The Korelin
Economics Report Welcomes Bob Dickinson
www.kereport.com
Bob Dickinson, Chairman
of Hunter-Dickinson, joined Paul and I on the latest edition of The Korelin Economics
Report. Helping us inaugurate our new recording studio, Bob gave our
listeners an overview of his organization, which serves as the umbrella for
eight successful publicly traded mining companies. Knowing that our audience
would want to hear the current status of the Pebble Project, the primary
asset of Northern Dynasty Minerals Ltd. (Amex: "NAK" and TSXV:
"NDM"), Bob then spent the second segment of the program discussing
Pebble and why it will probably evolve into the largest asset of its type in
the world.
Bob Dickinson, introduced
to us by Shaun and Scott Gibson of Gibson and Company � a Vancouver based
marketing firm, is one of the most interesting and respected folks in our
industry. It was a pleasure to visit with him and learn not only about his
organization, but also about his background and his passion for the resource
industry. Click on www.kereport.com and see if you don�t share our enthusiasm.
In each of our next two
segments we featured new guests. We believe that you will find both of these
individuals to be valuable additions to our program.
Joe Martin of Cambridge
House introduced us to Jim Willie, editor of The Hat Trick Letter. In the
third segment Jim gave listeners a brief tutorial on Petrodollars and
explained why talk by OPEC governments of switching to Euros as a base
currency gives US politicians the jitters.
Jeff Ferguson, a private
economist from Gig Harbor, Washington, made a strong case in the fourth segment
for his assertion that the manipulation of interest rates is the most
damaging form of government market intervention, and the major underlying
cause of business cycles. He went on to discuss the reasoning for his belief
that the economic conditions prior to the Great Depression of 1929 are here
again today. He also discussed why he feels gold stocks provide safety for
investors in the current financial environment. To read an excellent
commentary by Jeff, simply click on "complete commentary" found on
the Korelin Economics Report website.
* * * * * * *
Alexander Korelin is the
co-host of The Korelin Economics Report along with Paul Warren. This
program is syndicated nationally on Talkstar and can also be listened to on
the Internet by going to www.kereport.com and clicking on "recent programs". Guests
pay no fees to appear on the program and neither Mr. Korelin nor Mr. Warren
own any stock in the companies discussed unless it is fully disclosed.
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