|
|
|
Sprott Asset Management Inc. Publishes
Gold Manipulation Study
|
|
|
August 24 - Gold $402.90 down $7.60 – Silver $6.56
down 18 cents
Endurance is one of the most difficult disciplines, but it
is to the one who endures that the final victory comes...The
Buddha
GO GATA!!!!!
Until The Gold Cartel is defeated, what I and everyone else
reports on regarding the gold market is mostly a bunch of
noise. Every time gold rallies it will be crushed by the cabal
monsters, just like we have seen the past few days. This is
why the following is HUGE news for anyone who intends to make
money with their precious metals investments:
Sprott Asset Management Inc. Publishes Gold Manipulation
Study
TORONTO--(BUSINESS WIRE)--Aug. 24, 2004--Sprott Asset Management
Inc. announced today the publication of Not Free, Not Fair:
The Long-Term Manipulation of the Gold Price.
The study represents the most thorough and detailed examination
of allegations that the gold market has been subjected to
severe price manipulation over the past several years.
Commenting on the landmark report, John Embry, Chief Investment
Strategist, stated:
"We, at Sprott Asset Management, have felt for some
time that the gold price has not remotely reflected its true
underlying fundamentals. In response, we have conducted a
comprehensive study of available information on the subject
and have concluded that the evidence strongly supports those
who believe that the gold price has been and continues to
be suppressed."
The study may be read in its entirety on Sprott Asset Management's
website: www.sprott.com.
Sprott Asset Management Inc. (www.sprott.com) is a Toronto
based private company with over $1.6 billion in assets under
management primarily for institutions, endowments and high
net worth individuals. Sprott Asset Management Inc. is the
investment manager of the Sprott Energy Fund, Sprott Gold
and Precious Minerals Fund, Sprott Canadian Equity Fund, Sprott
Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund
LP II and Sprott Opportunities Hedge Fund LP.
-END-
This report has been sent to the major financial market press
in Canada, the US and part of Europe. It also has been sent
to every major gold producer and to many of the junior gold
producers.
The reason why this report is so significant is that the
"Dracula-like" Gold Cartel cannot withstand “the
light of day” that scrutiny brings. The cabal’s
cross is THE TRUTH, which they have gone to Herculean efforts
to hide from the investment world. A dispassionate report
such as this one, which ties together so many FACTS, is going
to shine a light on what the gold market has been really about
for many years.
As more and more investors realize what the price manipulating
cabal has done, they will want to buy more physical gold because
the eventual outcome for the price will be more apparent.
It must go MUCH HIGHER! Big player investment-types will come
to appreciate this Gold Cartel is RUNNING OUT of enough physical
supply to carry on their fraud. As this report circulates
its way among other central banks, it will attract more Argentinas
who will realize the value of adding gold bullion to their
currency reserve positions.
When it comes to the major gold companies and the ones you
are investing in personally, they will need some time to read
this very detailed report and to digest its findings. Then,
they should be asked what they intend to do about it, for
there is no more important issue they can address. For if
the price of gold is not allowed to rise like it should in
a free market, it won’t matter what else they do as a
firm. As gold company shareholders, your investments will
remain a losing proposition if The Gold Cartel is allowed
to continue on their merry, scheming way.
I reiterate. The price of gold should be hundreds of dollars
per ounce higher than it is today and will be once The Gold
Cartel is exposed in a major league way. It is up to GATA,
gold producers, and gold shareholders to win the day. This
brilliant report by Andrew Hepburn, John Embry and Sprott
Asset Management is one the entire gold industry should run
with. Let all Café members and GATA supporters do their
part to make sure this report gets the proper attention it
deserves. Spread the word, thunderbird!
For example, this is an interchange I had this morning with
a European Café member who happens to be a highly regarded
journalist:
Thanks willem,
Spread the word in Europe if you can. This can really help
us end this nightmare.
bill
agree...already done....distributed to 700 professionals
of my mailing list and on my website...
this will make a difference...
willem
Back to the mundane world of reporting on the corrupt casino
crowd. Once again the cabal is pulling off another fleecing
of the funds, who have been suckered for the umpteenth time.
These funds bought more yesterday on the pullback and are
getting their clock handed to them today with gold under pressure
from further cartel bombardment. The Gold Cartel continues
to rip off the funds with clockwork precision as the funds
continue to donate to the coffers of Goldman Sachs, JP Morgan
Chase, etc., year after year after year. Meanwhile, these
arrogants also laugh their way to their own bank as they fleece
you too! Sick of it yet?
The gold capping last Friday was as blatant as it will ever
get, as evidenced by the extraordinary 19,000+ contract open
interest increase. Gold should have rallied $16, not $6, with
that kind of buying power. It did not because word went out
from cabal headquarters to STOP the advance. Yesterday and
today were follow-through cabal efforts, which have been effective.
The gold open interest rose another 4,745 contracts yesterday
to 261,822 as further evidence of fund buying and cartel selling.
As of today’s close, all those in the Gold Cartel who
sold yesterday and Friday have nice profits. The specs who
bought the breakout above $405 are underwater. .
Tired silver continues to retreat. While the funds were pouring
into gold yesterday, they began to puke out their silver longs.
The open interest dropped 2607 contracts to 102,324. The gold/silver
price manipulators have the specs in these markets on a merry-go-round.
They suck them in and then blow them out. Do you realize how
much money these crooks have made over the past 8 years? It
is staggering!
Potential biggie here:
The silver stocks in the Comex warehouses fell to a new multi-year
low at 109,550,402, down 580,112 ounces.
Ted David of CNBC had the acting head of the CFTC on this
morning to talk about possible oil price manipulation. When
a market goes against what Wall Street wants, it must be manipulated.
Yet, when we bring their attention to the most obvious market
manipulation in history, that being the suppression of the
gold price, they won’t touch it, as it is against the
interests of Wall Street. Fair and balanced? What a joke!
That includes you, Bill O’Reilly at Fox News, you bombastic
Irish blowhard!
The John Brimelow Report
Big Brother IS watching us!
Tuesday, August 24, 2004
Indian ex-duty premiums: AM $6.42, PM $6.90, with world gold
at $407.20 and $406.40. High: ample for legal imports. At
these prices, India is prepared to underpin the world gold
market. Standard London resumed regular updates of their Dubai
kilo bar prices today
(http://www.standardbank.com/PreciousMetals/home.asp ); the
premiums which can be deduced are still respectable.
Japanese liquidation has accelerated. Although the active
contract closed down 12 yen, open interest fell the equivalent
of 1,112 Comex lots to only equal 92,381 Comex contracts.
The 1-day lagged Member’s position data suggests this
may understate the pace of the public’s retreat from
the market in the last few days. Aggregate volume was down
48% to the equivalent of 19,066 Comex lots. The two-week long
rise in the yen seems to be eradicating any appetite on the
part of the public for gold futures. (NY yesterday traded
40,312 contracts; open interest rose yet again, by 4,745 lots.)
Yesterday’s steady selling pressure has emboldened the
Bears, with both JP Morgan’s "Metals & Energy
Technical Strategist" and Commerzbank’s Technical
commentary stressing that gold stopped on Friday at the upper
bound of an uptrend channel. Morgan has put on a short and
Commerzbank is musing about a move to the lower bound of the
channel, at $385. Getting there, considering current premiums,
would take a great deal of physical gold sales.
Undiscussed in all this is the significance of the huge,
59.7 tonne open interest increase reported yesterday. Open
interest has now risen 39,235 contracts – 122 tonnes
– in the past five business days, for a net gain of just
over $7. UBS rather plaintively notes that their estimate
that the Comex net long is about 15 million ounces still leaves
7 million ounces to the Q1 peak, but in fact the inflection
rate is chillingly steep. Even yesterday’s down gold
price day, which must have shaken out some of Friday’s
more opportunistic longs, saw an appreciable open interest
increase. One notes that John Embry’s 70 page discussion
of gold price manipulation, posted this morning to his firm’s
website http://www.sprott.com/ , has excited so much interest
the web site keeps crashing. This seems understandable.
JB
CARTEL CAPITULATION WATCH
As is so often the case, the S&P and other futures contracts
came in a good deal higher as the PPT did what they could
to set the market tone once again. Their efforts met modest
success, however initial gains were not held for the most
part. The DOW gained 26 to 10,099, however the DOG lost 2
to 1837. The S&P closed around 3 points off its opening
call.
The dollar rose handsomely once more to close at 89.55, up
.37. The euro fell .62 to 120.79.
The US economic news of the day:
07:45 UBS chain store sales index +0.1% in 8/21 week after
(0.6%) in prior week
* * * * *
Redbook chain store sales index (1.0%) through 8/21 week vs
June
This marks a slight deterioration vs the (0.6%) reading vs
June reported last week.
* * * * *
10:00 July Existing Home Sales reported 6.72M vs. consensus
6.81M
June reading was revised to 6.92M from 6.95M.
* * * * *
GATA’s Mike Bolser:
Hi Bill:
The Fed added $6.5 Billion in temporary repurchase agreements
today August 23rd 2004, an action that shot the repo pool
up to $56.265 Billion but also kept its 30-day ma running
flat in a "plateau" pattern. The DOW remain weakly
up about 30 points at 11AM. The pool's 30-day ma runs at $45
Billion a value that is the highest of the series and what
I see is the beginning of a sustained period of elevated repo
pool conditions.
Looking forward there is a largish expiration on September
2nd of $11 Billion and IF the Fed chooses to offset that expiry
with an equal amount, the pool will have an intra-day value
of say, $20 Billion PLUS the carried amount giving the primary
dealers a very large source of futures buying exactly at the
beginning of the real political season. I am still holding
to the notion of a DOW September rocket until, as a Blue Dress
challenged president once said, "Until the last dog dies".
I will none-the-less be happy to concede defeat.
Gold
Even though gold seems to have slipped back to $406.20 (PM
Fix) the dollar went up somewhat offsetting the drop when
we use the DIVG to value gold. More later.
Mike……..
Hi Bill:
During this period of Fed transition it is important to watch
things very closely so as to obtain the earliest possible
data on their new intentions.
Today they are continuing to ease the DIVG ma upward while
giving the false impression of another attack. They may yet
enter a cyclic down move, attempting to hold a defense line
with a smaller wave pattern than they did in 2003.
The DIVG sits at 352.78. Some of my other metrics have yet
to change downward in the MCDI and upward in the PM Fix but
I'm expecting them to move those directions this week.
I am quite certain of the importance of the DIVG to the gold
cartel and offer four telling characteristics (1) The dollar/euro
parity ceiling defense at DIVG=323 (2) the clear cyclic defense
of three waves above and below that line (3) the almost perfect
linear retreat which began in Feb 2004 as a result of the
Fed failure to hold the 200-ma below the target DIVG 323 level
and (4) the choice of a retreat slope being exactly equal
to that linear regression slope of the previous six months
(beginning with a very bad DIVG upward loss day on July 21rst
2003).
These facts cannot be explained by anything other than human
intervention in an effort to steer the 200-day ma. There are
other implications that will be revealed in the future from
this set of facts that shatter the Fed's dollar/gold propaganda
machine.
The existence of COMEX preemptive selling, with its 3 and
even 4 standard deviation episodes has provided an anchor
which firmly holds the assertion of government intervention
and serves as a warning to all that imagine a freely traded
market in precious metals. That belief is a Fed engineered
illusion.
Mike
Houston’s Dan Norcini on the soaring gold open interest:
Hey Wild Bill:
Open Interest figures just came down the wire feed and again,
they are shocking. They show another massive increase in new
shorts, (some 4,475 to be exact) absorbing every bit of fund
buying yesterday as well as that of Friday. That yields a
total of 23,807 new shorts thrown at this market by the gold
cartel in the last two trading sessions alone. We are now
at 261,822 on the total open interest.
Sadly, this is all too eerily reminiscient of their ploy
merely a month ago when they piled on enough shorts to bring
the Open Interest totals to 263, 574 before gold rolled over
again near the 412 level basis December 04. With today's price
action, some of the short term oscillators have already turned
down once again exactly as they did a month ago.
Mahendra might have said that "no force on earth"
could keep gold from rising this time around, but Alas, Mahendra,
the cartel view themselves as demi-gods in their own mind
and thus are the high and lofty ones who have condescended
to grace us mere mortals with their heavenly presence. As
such, they are not of this earth! (Just ask 'em - Last I heard
they were ordering T-Shirts with the words "BE LIKE US
AT THE GOLD CARTEL" printed on front and back). I even
heard the rumor that Alan Greenspan had posed for a picture
to imprint on a special edition Gold Cartel Sweat Shirt (If
you order two of them, they will throw in some of those knives
that let you cut through cans and still slice tomatoes with
ease). I personally view them as better suited to the bowels
of the nether regions (some refer to that as hell) but that
is only the opinion of a mere peon, an ungrateful wretch who
fails to recognize how greatly they have benefited society
as a whole! Truth be told, the pond scum who make up this
cartel feel they have been given some sort of God-given right
to plunder the wealth of those who are prudent enough to hide
themselves from the coming financial storm.
The short of it is that gold is in a reaction setback mode
right now after having risen nearly $30 in less than a month.
We will have to see where the buying support surfaces. I have
a feeling that it is going to be at a higher level than last
time. I am especially interested in how it handles the $400
region. Physical market buyers are indeed waiting under this
market and will let it come to them. When they step up to
the plate, we will more than likely take out to the reaction
high near $417 this time around very quickly and easily. The
dollar rally is a joke.
Time will tell.
Best,
Dan Norcini
What is so sad is that so many people associated with the
gold market and who make commentary are affected with the
Not Invented Here Syndrome. Because the discovery that the
gold market is a manipulated one is not their own idea, most
will not deal with the most important aspect of this market.
You would think the recent and incredibly obvious price management
(via the dramatic open interest rise versus the minimal price
movement the past few days) would enlighten many individuals
still analyzing gold as if it were a free market. Fortunately,
the people at Sprott were willing to deal with the evidence
and are mature enough to speak out. This is no small event.
It is extraordinarily significant, as it will expedite the
downfall of The Gold Cartel.
This email to GATA's Chris Powell hits the nail on the head:
Chris,
On March 26, 1951 Mickey Mantle crushed a home run in an exhibition
game played at Bovard Field at the University of Southern
California. The ball left the park in right-centerfield, and
crossed a football field adjacent to the baseball diamond.
It is reputably the longest home run ever hit, traveling 656
feet, over two football fields long.
That's how I feel what GATA did today with the release of
the Sprott study by Embry (and Hepburn). Congrats on a job
well done. Now maybe we get some publicity.
Dale Holmgren
On JP Morgan Chase, the derivatives King:
Bill;
This Reuters article: http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=6038683..........
speaks of J.P. Morgan's talks to become a stake holder in
state owned - Bank of China. They are already "banking"
Iraq. GATA wonder what's next eh? Wouldn't you figure they
have enough on their own plate?
Amount of notional increase J.P. Morgan Chase derivatives
book increased in latest quarter – 3.2 trillion.
Who J.P. Morgan does all those trades with - ?
Assuming there are 20 hours in a day that J.P. Morgan can
viably transact global business institutionally, trading minutes
in a day – 1200
Assuming 22 business days per month, number of business days
per quarter – 66.
J.P. Morgan tradable minutes per quarter – 79,200.
Increase in book size this quarter: 3,200,000,000,000 / 79,200
= 40,404,040 per minute.
Number of lunch and bathroom breaks traders at J.P. Morgan
take - ?
Then again as evidenced by the numbers above, these guys
really are good - aren't they?
best,
Rob
From Stephen Leeb, a well known money manager:
Aug 23, 18:10
Since the end of 1998 oil has climbed from about $10 a barrel
to its current level of over $45. Not once during this entire
period has any major Wall Street firm forecast a higher oil
price one year forward. Wall Street, in other words, remains
a subject for the psychology texts with denial and group thinking
overwhelming any semblance of analysis. –END-
It’s not only oil. I can’t think of one Wall Street
firm who predicted the gold market rally over the past three
years either. Notice a pattern here? Both a rising gold and
oil price are negative for Wall Street. Therefore, they refuse
to deal with it honestly by giving objective analysis to the
public. Either that or most are Ivy League stuffed-shirt dummies.
This is another example of the kind of effort it will take
for us to win the day:
Hello again Bill:
I think that we're about to turn the corner on the gold cabal.
I believe the timing and contents of the Sprott report is
an ominous development for the manipulators, released at a
MOST inopportune time, given their latest egregious machinations.
Their footprints all over gold and the US$ today could not
be more obvious. I am e-mailing that report to as many financial
reporting agencies as I can. The cabal is DEATHLY afraid of
something, and we're going to find out what that is shortly.
I have been through the wringer with gold since 1999, yet
I believe it is time to buy TODAY, and I'm acting on my information
and beliefs. I surmise that our time is at hand; and I sense
blood in the market waters. I am close to completing my buying
of trading positions in Novagold and Golden Star today. I
fully expect to regale all those who will listen in the future
with tales of my purchases today.
My greatest temporal concern remains: what kind of country
(and world) have we devolved into as a result of the unprecedented
monetary fraud we have been subjected to by the banksters,
who appear to own and operate the finances of the de facto
U.S. government with impunity. Time will tell as always, and
time is on OUR side.
best regards, Tom K
Hi Bill,
Well, once again the gold crowd has proven it has all the
dedication of a mercenary with a better offer. Someone at
the dollar-diddling ESF screams "Boo!" and these
metals guys exit their positions faster than a first-time
fire walker over the red-hot coals!
I swear I just can't figure out what makes these gold bugs
tick. Why are they so damned skittish? They dart in and out
of position like water bugs. Things finally begin moving our
way again, and these ninnies have all the conviction of a
cliff diver with acrophobia.
Maybe these folks know something we don’t. Do they have
a strong case for their unwillingness to take a stand? Let's
have a look at two quick charts to find out...
Here's a multi-month chart of the U.S. Dollar. This chart
was created using data through yesterday, but if we could
see today's price action it would show us that the dollar
came just up against the down-sloping top green line and bounced
right back down.
Naturally, the price will have to break out of this symmetrical
triangle in the next week or so. My only question is, why
would anyone be banking that the direction will be UP!!???
The dollar's fundamentals stink to high heaven—perhaps
as badly as at any time in the last fifty years. With nearly
everything going against it (including the administration's
need for a weaker dollar to have any chance for re-election)
I can't imagine that anyone in his right mind would be a long-term
dollar BUYER. The ship is sinking but the band plays on...
Now, here's the gold chart:
Bill, have a look at this graph and tell me just one thing:
what on earth has this wimpy gold crowd so scared to take
a stand?
This isn't just some six-week chart we're looking at. This
thing is now firmly established for THREE YEARS! And look
at that MACD indicator. It's coming off the most oversold
condition since the major uptrend began, and folks are jumping
ship—again!—as if Ronco just invented a gold machine
and was selling it on cable (with a set of Ginsu knives, no
doubt) for $19.95.
Sheesh. All I can say is that when (not if) the metals finally
take off for the moon, those of us who stayed in the game
can't possibly be compensated enough for having stuck with
our convictions.
Frustrated but still on board,
Derek
The gold shares continued to work off their overbought condition.
The XAU dropped 2.14 to 91.66 and the HUI lost 5.50 to 199.35.
The Sprott gold market manipulation report trumps everything
else by far today. This is a highly regarded firm which has
put its name and reputation on the line in an effort to expose
one of the great frauds in market history. They are also going
all out to give the gold industry ammunition to help itself.
This is a facet of the mainstream gold world speaking to the
rest of their community.
Let all of us do our part and run with this extraordinary
report and effort. It is time for The Gold Cartel to be put
in their place, and for the price of gold to trade freely
in accordance with its natural supply/demand fundamentals.
GATA BE IN IT TO WIN IT!
MIDAS
***
Copyright (c) Le Metropole
Cafe, Inc.
www.lemetropolecafe.com
Le Metropole Cafe is a Membership site. Visit and experience
a 2-week Free Trial!
|
