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March 1 – Gold $432.40 down $3.70 – Silver
$7.19 down 16 cents
A hard beginning
maketh a good ending... John Heywood "The Proverbs
of John Heywood" (1546)
GO GATA!!!
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 Café
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/45
The 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
Café 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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