Manipulation Of US Financial Markets Has Gone Bonkers

November 6 – Gold $820.70 up $13.60 - Silver $15.24 up 57 cents

"Whatever you do, you need courage. Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising that tempt you to believe your critics are right. To map out a course of action and follow it to an end requires some of the same courage that a soldier needs. Peace has its victories, but it takes brave men and women to win them" ... Ralph Waldo Emerson

GO GATA!!!!

Is this gold move a big deal? No … $1350 bid would be a big deal. Right now there is little belief, understanding, or enthusiasm over the moves in gold and silver. Most observers are looking cross-eyed at the price rises and remain clueless as to what is happening and why.

Café members who have been around for some time know exactly what the deal is … and it is so simple to comprehend … the price of gold (and silver) was artificially suppressed by a bunch of white collar, Mafia-like crooks. These bums are now losing control of their rig because they are running out of enough available central bank gold to meet the burgeoning demand.

To understand what is going on (a review has always helped me), one only need read the brilliant commentary of Frank Veneroso at the GATA African Gold Summit in Durban, South Africa on May 10, 2001. Frank nailed it, not only saying what would happen, but when. For newer Café members, here it is (the gold price was $256 per ounce at the time):

Facts, Evidence and Logical Inference

A Presentation On Gold Supply/Demand, Gold Derivatives and Gold Loans

By

Frank A. J. Veneroso

First, we take our conservative numbers--- our lower rather than our higher estimates of gold lending. Here we project how long this process can go on if we assume no growth in demand and no decline in supply and conclude it will take a decade to empty the vaults. In this alternative projection we have assumed some growth in demand and some decline in supply. It will take about 7 years to empty the vaults.

If we use our more aggressive numbers, we have less in those vaults and it is flowing out at a faster rate; consequently, it takes less than seven years to empty the vaults.

So whatever is happening in the gold market--- whatever is keeping the gold price down---if our numbers are correct, it can't go on that much longer, because we know not every central bank will lend or sell all it's gold. In fact, if our analysis is correct, the official sector knows what is coming. If the official sector is rational, it knows what will happen to the gold price when this large flow that is depressing the price abates and ultimately ends---the price will go up by a lot. Therefore, some rational central banks will not sell and lend down to the last ounce. Instead they will start to buy. So regardless of what has been happening in the gold market, if our data is correct, then, within a couple of years, whatever the official sector is doing, it will terminate and the gold price will rise.

What are the implications of all this dry statistical analysis for the claims of GATA? To our mind, it is very simple. There is much evidence that the consensus data on supply and demand is wrong and that the supply coming from the central banks is higher than the consensus estimates. In our opinion, the fact that the central banks do not acknowledge this but simply keep affirming the consensus data---despite abundant evidence to the contrary---represents considerable support for the allegations of GATA that there may be something deliberate and intentionally clandestine about the large flows of official gold that have been depressing the gold price.

http://www.lemetropolecafe.com/pfv.cfm?pfvID=1525-END-

However, the real key to understanding this market today was presented by the speakers at Gold Rush 21. For a piddly $20 this information has been available for over two years to the general public. The gold price at the time of GATA’s historic conference was $436. One attendee at the conference was Andrey Bykov, an economic consultant to President Vladimir Putin of Russia. Andrey, who passed up the mainstream Diggers and Dealers gold conference in Perth Australia to come to ours, told me it was the finest conference he ever attended. Two days after the conference gold exploded, then rose $300 per ounce in the next 9 months before correcting, even though the dollar only dropped from 89 to 87.

To view the 2 minute trailer of that conference go to www.GoldRush21.com.

At Gold Rush 21, Sprott’s John Embry, Wits Gold’s Adam Fleming and I (among others) predicted gold would rise to $3,000 to $5,000 per ounce … and explained why it would do so.

One more thing, the Russian bit was no fluke. The Russians, unlike the so-called mainstream gold world, have followed GATA very closely. A Chris Powell dispatch in 2004:

(GATA) Russian central banker cites GATA, says gold market may be less than free

10:13p ET Sunday, October 3, 2004

Dear Friend of GATA and Gold:

Movements in the price of gold are sometimes "so enigmatic" and central banks and bullion banks are so involved with it that the gold market may be less than free, the deputy chairman of the Bank of Russia says.

The deputy chairman, Oleg V. Mozhaiskov, made the remarks in a speech at a meeting of the London Bullion Market Association in Moscow in June, but the LBMA and other participants in the meeting suppressed it, refusing repeated requests to release a copy. After months of negotiation, the Bank of Russia last week supplied the Gold Anti-Trust Action Committee with an English translation, which is appended.

http://www.lemetropolecafe.com/pfv.cfm?pfvID=4133

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On the growing gold demand and why The Gold Cartel is gagging … only two weeks ago MIDAS reported the following:

October 25 - Gold $767 up $5.40 - Silver $13.82 up 35 cents

My contact within the Istanbul Gold Exchange has told me that the exchange itself is "running" out of physical at breakneck speeds. So much so that they have started to solicit major and mid tier gold mining companies world wide with the hope of securing some more physical before the markets get wind of it. Says quite a bit, doesn’t it, when the world’s 3rd largest importer of gold is scrambling to find physical to meet the massive demand coming out of that area. I smell a commercial signal failure around the corner.....

-END-

Now this:

Dear Mr. Murphy!
The following might be of interest for your next Midas and explain some things going on in the world of gold. This is based on a mail I received from a reader of my German language gold website www.hartgeld.com

My translation:

"Today I had a conversation with a friend who works for a broker-house in Dubai:

Because stock and bond markets moved sideways in recent weeks, but the USD sinks quite rapidly and precious metals rise, I asked him about his opinion as a professional:

He told me, the sheiks currently don't throw dollars on the market. BUT HE HAS THE ORDER TO BUY ALL GOLD WHICH APPEARS ON THE MARKET, BY USINGUS-DOLLARS FOR THE PURCHASES. The same order is valid for stocks of selected companies (even if they are in the US), but they buy no government bonds."

My commentary:

This might explain the current unsatiable demand for gold and a rising price despite all gold cartel efforts. But who buys the Treasuries sold off/not bought? Helicopter Ben?

Gold and silver market situation in Europe:

Especially in Germany the market is on fire. Silver in larger quantities is almost impossible to get in Germany and Austria. Gold becomes more difficult to get, but is still available. Also the financial media became quite gold-friendly in recent weeks.

In other countries of Europe, like Switzerland, France, Italy the interest in PMs is markedly lower.

There is a certain irony, that it is very difficult to get information about the situation in other EU countries. The reason is the language barrier. PM investors can only tap information in their own language area and from the US/UK (because most people understand English).

PS:
Last weekend I visited the annual precious metals fair in Munich, Germany (I have heard your speech there last year) and talked to several PM vendors and mining companies:

No one knows what the really sell: lifeboats for the collapse of the fiat-money-system. They all think they sell metals or coins. So they are totally unaware of the real potential in PMs.

This verifies repeated observations in Midas, that almost no one in the "professional gold world" really knows what their product is for.

Best Regards from Vienna, Austria
Walter K. Eichelburg

The PM Fix soared to $822.50. Demand for physical gold is on fire.

The big picture news could not be better. In the meantime The Gold Cartel gave us the usual drill … same ole crap. Gold spent most of the day up $15 to $16, meaning it was capped after the initial dramatic surge, as gold breaks away from $800 after yesterday’s test. Then it dipped a couple of bucks on the close.

The gold open interest shot up another 11,543 to 551,022, which gives you some idea of how much The Gold Cartel was on gold’s case yesterday with all US financial market turmoil. Who knows how much it went up today.

One more time:

http://www.rallymonkey.com/video/kenindex.swf

The gold moon shot in process:

December gold
http://futures.tradingcharts.com/chart/GD/C7

Silver is finally doing what silver should … showing some serious oomph. The silver open interest went up 4,227 to 145,858, which is at least a 28-year high. One of these coming days we will get our $1 to $3 up day. Silver on the move:

December silver
http://futures.tradingcharts.com/chart/SV/C7

With today’s move, silver is technically SUPER BULLISH, as it has broken out, trading to the upside after an extensive consolidation period. Look at the monthly chart:

http://futures.tradingcharts.com/chart/SV/M

-END-

Crude oil finished the day up $2.72 to $96.70 per barrel.

On CNBC they said $101 oil would put it at an inflation adjusted all-time high. Gold needs to take out $2200 (minimum) to do the same. That is how much The Gold Cartel has suppressed the price all these years. Gold will take out $2200 and probably double that price.

The dollar fell another .37 to 76.02. The euro gained .77 to 145.53.

CARTEL CAPITULATION WATCH

Metals - Gold sets fresh high on inflation fears, weak dollar, safe-haven buying

November 06, 2007: 12:18 PM EST

LONDON, Nov. 6, 2007 (Thomson Financial delivered by Newstex) -- Gold surged to a 28-year high of 824.50 usd, just 3 pct lower than its record peak, as high oil prices sparked inflation jitters.

A weak dollar, which hit a series of lows against the euro today, also lent support because it made commodities denominated in the greenback cheaper for those trading in other currencies…

-END-

Then how on earth does the DOW rise 118 to 13,861 and the DOG gain 30 to 2825, while the yield on the 10-yr T note is not far from its lows at 4.37%? This is how …

It is truly mindboggling what the Working Group on Financial Markets, Exchange Stabilization Fund, Counterparty Risk Management Group, and Gold Cartel are doing to the US stock market, gold market and interest rate scene.

Clearly they are in a state of panic behind the scenes and, while losing control of the gold price, have their entire PPT ARMY propping up the market to counteract what gold is doing. Gold is the barometer of how well Wall Street is doing in many ways. So, to keep the investing public and US consumer further in the dark about how bad things really are, they move the DOW up.

The money they must be throwing into the US financial market system has to be staggering … to make sure …

"Everything is fine"…

Yet, in addition to the disappearing dollar, and soaring gold/oil prices, the news is horrendous and worsening:

BEAZER 4Q NET NEW HOME ORDERS FALL 53% TO 973

BEAZER SUSPENDS QUARTERLY DIVIDEND OF 10C

IndyMac Reports $202.7 Million Loss on Late Payments

Nov. 6 (Bloomberg) -- IndyMac Bancorp Inc., the second- largest independent U.S. mortgage lender, reported a loss five times bigger than the company forecast in September as foreclosures and late payments rose to a record.

IndyMac cut its dividend in half, eliminated more than 1,500 jobs and increased reserves for bad loans by 47 percent to help weather the worst housing slump in 16 years. The loss of $202.7 million, or $2.77 a share, compares with the 50-cents-a-share forecast the Pasadena, California-based company made on Sept. 7.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aV0m3MR6afXs&refer=home

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Fitch may cut Countrywide, changes bank outlooks

NEW YORK, Nov 6 (Reuters) - Fitch Ratings on Tuesday said it may cut its rating on Countrywide Financial Corp and also revised its outlook on several banks, including changing Washington Mutual Inc's outlook to "negative" from "stable," citing a challenging market environment.

Fitch previously had Countrywide on rating watch "evolving" meaning the rating could be raised, lowered or left unchanged. Countrywide is rated "BBB-plus," the third-lowest investment grade. WaMu is rated "A," the sixth-highest ranking. A negative outlook indicates a rating cut is likely over the next one to two years.
(Reporting by Karen Brettell; Editing by James Dalgleish)

-END-

More great financial market news:

Markets fear banks have $1 trillion in toxic debt

By Sean O’Grady, Economics Editor

Published: 06 November 2007

A new phase in the credit crunch, one of "$1 trillion losses" seems to be dawning. The crisis at Citigroup and renewed doubts about some of the world’s leading banks disquieted stock markets on both sides of the Atlantic yesterday, with the fractious mood set to continue.

http://news.independent.co.uk/business/news/article3132507.ece

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REUTERS 3-MONTH DOLLAR LIBOR RISE THE BIGGEST ONE-DAY INCREASE SINCE SEPT 27

REUTERS BBA LIBOR 3-MONTH DOLLAR RATES FIXED UP AT 4.89750 PCT VS 4.87500 PCT MONDAY

REUTERS BBA LIBOR 3-MONTH STERLING RATES FIXED AT 6.2800 PCT VS 6.28125 PCT MONDAY

REUTERS BBA LIBOR 3-MONTH EURO RATES FIXED AT 4.58563 PCT, LOWEST SINCE AUG 16

REUTERS DOLLAR INDEX DROPS BELOW 76.0 TO RECORD LOW AMID BROAD GREENBACK DECLINE

REUTERS DOLLAR EXTENDS LOSSES, PUSHING EURO TO ALL-TIME HIGH ABOVE $1.4565

0:28 Options frenzy exacerbating oil surge - FT
The FT reports that heavy investor interest in oil call options is contributing to the surge in crude as the banks that sell the options have to to hedge their exposure by buying oil in the spot market. According to the paper, the options frenzy is evidenced by the fact that open interest in Nymex December 2010 call options at $100 a barrel rose to 24,903 contracts on Monday, double the level at the start ofthe year, while open interest at $120, $160 and even $250 a barrel has also surged, albeit from significantly lower levels.
Reference Link (subscription required)
* * * * *

The US economic news stinks all the way around:

21:28 Banks tightening lending standards - WSJ
Citing the Federal Reserve's latest senior loan officer survey, the Journalr eports that more banks are tightening lending standards for home buyers, even those with good credit. Roughly 40% of the banks said they tightened terms for prime borrowers in the prior three months, up 15% from the previous survey in July. In addition, about 60% of banks saidthat they tightened standards on home mortgages classified as "nontraditional," up from 40% in the July survey. The paper adds that the survey also found that banks are raising borrowing costs for larger businesses, as 20% of domestic banks said they tightened standards on loans to large and medium-size firms, up from about 10% in the prior survey.

* * * * *

Hmmm…

U.S. Fed banks to hike fees, cut electronic charges

WASHINGTON, Nov 6 (Reuters) - The U.S. Federal Reserve said on Tuesday it was raising overall fees for priced services to banks by about 3 percent in 2008, increasing charges for paper check processing but cutting them for electronic payment services.

The Fed said in a statement that Federal Reserve Banks project they will recover 101.1 percent of their priced services costs in 2008 and achieve full cost recovery for the fourth consecutive year. This compares to an estimated 2007 cost recovery of 101.5 percent and a 2006 recovery of 108.8 percent.

The Reserve Banks plan to raise check service fees by 5 percent while cutting fees by 8 percent for electronic payment services…

-END-

Greenspan, King see more pain for banks, U.S.

LONDON, Nov 6 (Reuters) - Central bankers past and present warned on Tuesday of more pain to come for the U.S. economy and that banks worldwide could take several months yet to reveal full losses from U.S. subprime mortgage lending.

Former Federal Reserve Chairman Alan Greenspan and billionaire investor George Soros said the downturn in the U.S. housing market had yet to take its full toll on growth.

Bank of England Governor Mervyn King said banks would take some considerable time to flush out total losses related to mass defaults on U.S. mortgages leant to people ill-equipped to pay.

"We have several more months to get through before the banks have revealed all the losses that have occurred, and have taken measures to finance their obligations that result from that, but we're going in the right direction," King told the BBC….

After my rant was in the can, James Mc sent us the following beauty:

Bill,
The financial imbalances right now are just incredible. The 10 year bond yields 4.34%, as oil approaches $100. Fannie Mae stock fetches $54 a share, while a trillion dollars of mortgages go sour. General Motors stock is $34, with gas barreling to $4 a gallon. Goldman-Sachs shares are $218 as the banking panic unfolds. Google is $733 as Pakistan descends into chaos. The notional value of all derivatives on the planet is a number so big we're unsure how much it is, let alone what to call it. It's something like 2 or 3 times a quadrillion, which puts the dollar's true value in perspective. All the while the Dow and S-P act oblivious to it all. You could go on and on about the surreal dichotomy between reality and Wall Street. One thing is for certain, imbalances never last forever.

We are entering a financial twilight zone with endless sign posts up ahead leading to gold ownership. It is asinine for the media to focus solely on geo-political tensions with so many other bullish reasons to own gold. The days of speculating whether the dollar can get stronger are over. Housing is toast, along with the American consumer. The daily collapse of derivatives continues unabated. Central Banks are running out of available gold suppression ammo. All that's left are endless bailouts, banking disasters, and military budgets etched in granite. Of course the U.S. must inflate or die.

No market would have ignored these sign posts unless it wasn't being allowed to react. If the gold market were freely traded it would have already looked far forward and factored $3,000 or more. The difference between the current $820 and $3,000 is the suppression factor. Gold is filling that suppression gap in an accelerated manner.

The Fed now will watch the train wreck they created. With no apparent tongue in cheek the Fed noted in last week's meeting that high oil prices were a problem that could "increase inflationary pressures". Hopefully a few of their cigars got spit out when that sentence was approved. Even a doublespeaking Fed can't hide the fact that the one product they were entrusted to protect, the dollar, is close to last rites. Gold is now once again pointing its finger (I'll leave it to you to choose which one) at the culprits.

Finally, after seeing numerous reports of dwindling gold production maybe the government will need to reclassify its gold again to "really, really deep storage gold, subject to derivatives, strikes, and social unrest." It is doubtful too you will ever see any Fed reference to dwindling dollar production.
James Mc

-END-

Chuck Chuck checked in last night with more priceless commentary:

Bill:
I wasn't going to post anything today since it was obviously business as usual in mindless financial America. But I had to vent some emotion as I watched the markets recover once again in the Midas-term "Hail Mary" mode. If you think that Bill exaggerates this analogy, I wish to point out that unofficially the stock market has recovered about 15 out of the last 18 days following 3 PM. To put this into some kind of perspective I can recall and reported that the gold shares as they declined ferociously would tend to sell off at about the same kind of percentage. Both figures are quite remarkable and unexplainable except for the kind of psychology and the corruption each represents.

The other amazing point is the continuing disconnect between the financial stocks and the few highly visible stocks that capture the media's attention. These would include Google, McDonalds, Apple and Research In Motion. First, I want to report on the financial companies and what they have done since June 1st. Here are the top to today's close percentages. First, the Dow Jones is exactly the same point as it was that date. Citigroup-down 33%; Bank America down 12%; Wachovia-22%; MBIA-50%; JPM-22%; MER-38%, FNM-30%, FRE-30%, plus almost all of the housing stocks and so forth. Now here is my logic. What is more important? To have the financial sector healthy and capable to finance the economy or to have a few consumer stocks levitating while the financial sector indicates that there is a imminent contraction of credit? Isn't it logical that we have arrived at the second scenario?

And finally, we have some other kind of related flashing danger light, the persistent power of the price of gold against a increasingly scary financial situation. Until now, gold has marched lockstep with the stock market to the inflationary pressure of an exploding money supply. But now it is rising for a new reason, and a much more important one--the coming implosion of the world monetary system. It is very possible that this might end up being just a tremor not the quake, but I wouldn't bet on it. All of the above is indicating to me that the system is coming unglued as the financial and the housing stocks going in one direction-down.

This is the third time in the past 8 years that I have muttered to myself, my wife or to anyone who might listen, that they will have to break the arms of the public to stop the insane buying. Back in 2000 it was the high-techs. Then it shifted seamlessly to the housing market. Now we are reduced to Google, Apple and Research In Motion. I have this vision that one day Google will announce something that will cause the shares to halt at $750, with an indication that the stock will open 200 dollars lower. But even as they announce this, there will be hundreds of individuals or hedge funds that will beg that they might buy the stock even at $750 before the stock reopens. That is how insane this market it at this time.

The central issue of our time is "what is money." Is it paper and debt or is it as we have maintained, gold? We are now receiving our test results. "Once more I will shake not only the earth but also the heavens." These prophetic words are about to come about. Chuck ikiecohen@msn.com

After all of that, and for a hoot, check out Jessie’s web site:

http://www.geocities.com/arthurcutten/jesse.html

***

In late, maybe this is the real reason the US stock market took off to the upside:

Gulf armies ready for possibility of US-Iran war

(AFP)--6Nov2007/339 pm EST/2039 GMT
The armed forces of the Gulf Cooperation Council (GCC) are prepared for the possibility of an armed conflict between the United States and Iran, Saudi Arabia's deputy defence minister said on Tuesday. In reply to a reporter's question on the preparedness of GCC states in the event of such a conflict, Abdul Rahman bin Abdul Aziz said: "This subject is under constant study between defence ministers as the countries of the Gulf have to be always ready for any emergency."

His comments came after a meeting of GCC foreign and defence ministers in Riyadh to discuss growing tensions in the region over Iran's controversial nuclear programme.

Tehran vehemently denies US accusations that it is secretly developing an atomic bomb, and insists that its nuclear project is for peaceful purposes.

The pro-US GCC consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

http://www.platts.com/Petrochemicals/Resources/

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TOCOM

Ladies and Gentlemen:
On November 5th the seven big gold shorts reduced their net short position by 5,719 standard contracts to 61,600 contracts.

http://www.tocom.or.jp/souba/gold/torikumi.html

n silver they reduced their net short position by 296 contracts to 1,155.50 contracts (old 60kg deliverable equivalent).

http://www.tocom.or.jp/souba/silver/torikumi.html

Take care,
Scott

Bill,
In the November 5 session on the TOCOM Goldman Sachs COVERED 685 short contracts to bring their net short position to 9,099 contracts. Their short position continues to diverge from the gold price as they head out of Dodge as fast as they can. Some observers have suggested that Goldman Sachs is "re-loading" to smack the gold market again. I don’t believe so. If you look at the trend they have been covering on average for 16 months. With the POG soaring one would have to wonder when they are contemplating launching this "The Empire Strikes Back" offensive. They have reduced more than 45,000 contracts from their all time high, which is more than sufficient ammunition to try to make a dent in the price! If they had been preparing to short the gold price they would have done so before now. This is the hallmark of a trader who is desperately trying to get out of a toxic position.

Cheers
Adrian

Copper bears:

Chilean Copper Commission Boosts Price Forecast on China Demand
2007-11-06 07:40 (New York)

Nov. 6 (Bloomberg) -- Chile, the world's biggest supplier of copper, raised its price forecasts for the metal on rising demand from China.

Copper will average $3.10 a pound in 2008 and between $3.20 and $3.30 a pound this year, up from $3.05 in 2006, the government-run Chilean Copper Commission said today in Santiago.

The group in August said copper will trade at an average $3.20 a pound this year and $2.70 next year.

-END-

On the stock certificate issue:

Taking Sinclairs advice I called Ameritrade and asked for the certificates of my four largest holdings. I was told that it would take about four weeks and cost $40.00 per certificate. Next day I noticed a $200.00 charge to my account. I called today and told the girl how I had been quoted $40.00 per certificate. After verifying that I was an Apex customer she said I should not have been charged and rebated the charges. It might be nice for GATA members to know that Amreitrade Apex customers can get certificates for free.
Harvey Noel

i feel like groundhog day talking to clients in europe, 99% still dont believe that the USD will collapse and gold soar, 99.5% have no exposure to precious metals. The ones that know the word gold, just know names like BHP Billiton and thats it. All say you were right but all think too late to buy !

Whats your thoughts on the transferring of shares out of custody to physically holding that is increasingly being highlighted as a must ?
Regards Viktor

Jim Sinclair is a very smart man. All I know is I took delivery of 250,000 shares of ECU silver and misplaced it. It then cost me $1900 and took 7 months to replace. If I put them in a bank, the bank will probably blow up. I am staying with my shares in 3 brokerage houses, one in Canada.

From Sabre:

FUNDAMENTALS? The financial world is on the verge of systemic risk and we are talking supply and demand? These guys are short and getting slaughtered, period.

UBS has long maintained that large net gold longs on the COMEX exchange are a risk, but conceded Tuesday: "As we have seen, positioning alone does not a correction make," admitting that the past month had been "a frustrating one for analysts with a fundamental bias."

UBS stressed: "Gold has traded much higher than prices that can be justified by supply and demand fundamentals and then manifestly failed to correct lower."

U.S. crude oil futures rose more than $2.00 to a record high above $96 per barrel on Tuesday, bouncing back amid a weaker dollar, higher equities futures and expectations that domestic crude oil supply slipped last week.

-END-

(Reg Howe and I met John Reade of UBS for lunch, along with 8 of his colleagues, at the Paris Gold Conference in May of 2000. We explained the gold story to him. For that he called the GATA crowd idiots earlier this year. What goes around, comes around.)

Bill,..
As a quick follow through to my correspondence a few days ago,..

As a private individual, sat here in my office in Scarborough (North Yorkshire), I do not always have the best access to charts and data,..Although the internet is an incredible data base,..

I fear I may of undercooked it on the Euro Gold breakout level,.. I intimated that a positive breakout over 350 Euro Gold would represent an all time high in Euro Gold,.. However looking at a chart of Dan Norcini's at the excellent website jsmineset.com (Jim Sinclair), it
appears that the all time Euro Gold high is in fact about 365 Euro/oz,.. Well, as I write this, Euro Gold sits at approximately 362.94/oz, so we're not far off!.. A rise in Euro terms to 370/oz will be another confirmed breakout and could expect to bring significant interest to the long side of the table,..

Again, as my Chartism is limited, I'm slightly puzzled as to what level silver should reach to confirm it's own breakout,.. I intimated in the previous correspondence a level over about $15.30, on the forward contract price, as this would represent a breakout above the May 06 high,.. Yet the tremendous and esteemed James Turk writes in his latest article, that a breakout above $14.85 would confirm a new uptrend in the making!.. Given that it's already moved through that level this morning, it's going to prove a long day to see if she can hold that to the close,..

Again, if this level is convincingly breached, this should throw the proverbial birdy up at all the naysayers who have been winding on about silver's non confirmation to gold's breakout and bring yet more interest into the precious metals sector as a whole,..

Repeating my views of previous correspondence, my guess is that there are a reasonable number of Gold Bugs who are super bullish on the long term fundamentals of gold, believing it's heading to $1500+/oz, but who have felt clever enough to try and out trade this latest move in gold. They are now on the sidelines desperate for a correction in order to take their positions again,.. At some point they're just going to have to close their eyes and head back in, for fear of missing the party altogether!..

I thank my lucky stars, I signed up to the lemetropolecafe.com, when I did,.. It's one thing to spot a trend, but riding the bull is the real task,.. He'll do everything in his power to try and shake you off,..

As ever, most grateful for all the tremendous incite yourself, Adrian and the rest of the team have given me during this adventure so far!.. I truly feel part of a tight nit band of brothers, working to put the
record straight,..

Of course investing in Gold does have one other major plus,.. Where else can one sate one's long repressed, adolescent, rock band, Harley driving inbuilt desire 'to stick it to the man' (aka the system) and still make money in the process!..

Kindest regards,..
Richard (live from 'The Scarborough Bullion Desk')

In this afternoon:

From George Cooper at USA-Gold:

MarkeTalk (usagold.com 06November2007; 13:03)
Today’s Launch of Gold and Silver

I noticed that today’s launch of gold and silver began at midnight (Denver time) which is 8 am (Zurich time). So I made a few phone calls to well-placed sources and this is what I got back, whether it is true or not. Earlier today there was a meeting between two well-known heads of state and the topic discussed was the shiny yellow metal. News of this meeting was circulated to the trading departments of the big European banks who acted on the news. By the time Comex opened, it was all over but for the shouting. My sources also told me not to expect any significant pullback until at least $850/oz. and probably closer to $900/oz.
GC

The XAU went up 6.23 to 192.84 and the HUI soared 19.09 to 455.90. The shares are beginning to catch fire.

The Café Sentiment Indicator is still only a 6 or so. Unreal. Those who think there is excessive exuberance over gold and silver have no idea what they are talking about. It is the opposite still. The public still can't spell gold yet, with more and more potential investors staying that way, potential.

Yes, at some point here we are going to have some significant corrections, engineered by The Gold Cartel, or not. However, the cat is out of the bag. The physical market is on fire. The Arabs, Russians, Chinese, Indians, etc., WANT GOLD, for ALL KINDS of reasons. They will buy corrections.

The BIG MONEY in the world has to be able to see what is REALLY going on in the US financial markets and what it means. Our markets are a farce. As more and more of this BIG MONEY in the world knows what we know, they will turn to gold (and silver) sending both prices to the moon.

Only a matter of time for The Gold Cartel (look closely):

Courtesy of Mike

Gold, silver and the shares remain THE historic investment opportunity of a lifetime!

Will end this MIDAS on an upbeat note with the "Murphy Ickey Woods Shuffle" ...

Courtesy of Rob K

GATA BE IN IT TO WIN IT!

MIDAS

Appendix

GREAT Morning eh Bill -

Someone at the Tampa Tribune must be in your viewing audience - or has been primed by one.
Look at what appeared in today's edition!
Best,
Fred

Bill/Adrian,..
Really just a quick note sending you both a very hearty thanks for all the tremendous analysis and entertaining writing I have read through lemetropolecafe.com and Midas,.. Through the insights of yourselves, together with the additional inputs from other subscribers and members of GATA, I have learnt a tremendous amount this last year, which has helped me ride this very high spirited young golden bull, without not only shedding my position, but adding to it significantly along the way,..

I am a surveyor by trade, but have found myself firmly hooked into this precious metals adventure, and I now spend the greater part of my working day in the world of commodities,.. However a trading desk is a cold lonely place up here in North Yorkshire with little interest from the rest of the office!.. It is the correspondence of the likes of Midas and yourself that keeps the mental ‘coal fires burning’,..

As for current financial returns, my family and I are deeply indepted to you both,..

One day I would very much welcome hosting a dinner for you both in London and any others of the GATA team, so please let me know if you are ever over in the UK,..

Wishing you all the success you deserve,..
Kindest regards,..
Richard (live from ‘The Scarborough Bullion Desk’)

Hi Bill,
I caught this clip about Mort Zuckerman on PBS's McLaughlin Group this weekend. Buchanan is priceless.

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"Mort Zuckerman from U.S. News and World Report doesn’t have a lot of faith in the strength of our economy. He depicts our state as "the worst potential financial crisis since the Depression." Not exactly rosy. Of course, Pat Buchanan has to bluster about (that’s his job, right? Professional blusterer), but host John McLaughlin asks the line that many of my friends in the finance industry have been asking themselves: "Should we open the window and go to the ledge now?"

Hale Stewart explains why–despite the isolated points of positive news–this is the worst economy of our lifetimes.

http://www.crooksandliars.com/Media/Play/23145/1/TMG-economy-recession-110507.wmv

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Crooks and Liars is a good site for catching them with their fingers in the pie, it does lean to the left a bit, but they will smack them all. Also they've had some good things to say about Ron Paul.
Cheers,
Gary

Dear Bill,
How nice it is to wake up and see gold up $10, and not down $10!!! What a change from just a couple of months ago...we must be drawing closer to our $50 day. With the chart beginning to go vertical, I'd say it could happen any day now. Hell, there's nothing stopping it from doing it today! Here's to you and all the blood, sweat and tears you've put into the GATA effort. It is paying off handsomely, and it won't be long until we see the old nominal high eclipsed. The Cartel must be in real trouble. It couldn't have happened to a better bunch of thieves!
Cheers,
P de la V

By : Bill Murphy

Lemetropolecafe.com

Le Metropole Café is a Membership site. Visit and Experience a 2 week Free Trial !

Bill Murphy is chairman of the Gold Anti-Trust Action Committee and proprietor of www.LeMetropoleCafe.com, an Internet site devoted to financial commentary with emphasis on the precious metals.