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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
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