The following comments
are dedicated to the announcement that N. M. Rothschild announced
this last week concerning their exiting the gold market.
Is this good news or bad news?
I suppose it is really in how you interpret it. Personally,
I believe they smell a scandal coming & higher gold prices around
the corner & the Rothschild family will participate in no scandal.
Anyway, myself & others, also, believe the news
to be bullish for gold! Read the following comments below.
“LONDON, April 14 (Reuters) - NM Rothschild & Sons Ltd.,
the London-based unit of investment bank Rothschild [ROT.UL], will
withdraw from trading commodities, including gold, in London as
it reviews its operations, it said on Wednesday.”
“Why is Rothschild leaving the gold business at this time
my colleagues and I conjectured today? Just a guess on my part,
*SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND
THEY WANT NO PART OF IT. …”
*…the gold swaps/loans used to rig the price have about run
their course – which means the gold market is going to blow
up in the years to come.”
*The days of making money on the short side via lucrative hedging
programs for producers, etc., is over.” LeMetrople, 4-14-2004
The following comments below are from a commodities & gold trader.
“Approximately 10 years ago Merrill Lynch decided to get out
of the commodity markets. At that time I told our other brokers
that this marked the BOTTOM of commodities.”
“That prediction was spot-on.”
“Now comes word that the World Gold Council is closing half
of its global offices and laying off most of its important analysts.
Not only that, but the venerable N.M. Rothschild, an old name in
the world of gold dealing, was closing its gold trading operations.”
“As Gartman (Gartman Report) said in response to this news...
"THIS IS THE STUFF OF MARKET BOTTOMS, NOT OF MARKET TOPS...
or at least that is what we have learned from the past when one
'cartel' after another ended operations after sustained periods
of weakness in the commodity they were trying to defend and/or sponsor."
Baird Montgomery, Commodities Broker, 4-15-2004
And from the Desk of Nick Nicolaas.
The Macroeconomic Newsletter, Warren Pollock, April
“This move could mean the following; The political
confidence of large wealth holders in the US fiduciary responsibility
to global banking and governance through mutual interest may have
“LARGE MONEY MAY BE INSISTING THAT POLITICAL
CHANGE OCCUR IN THE US.”
“Significant derivative problems could exist
causing Rothschild to have exposures on lent gold that cannot be
returned to central banks.”
“Rothschild may be acting upon intelligence
it has via its political contacts regarding pending geopolitical
threats which could include a wider war in the Middle East or the
further isolation of the US.”
“1. Rothschild may be consolidating and accumulating
positions in gold in
advance of a global financial collapse, or a US financial collapse.”
Yes, I believe the venerable Rothschild’s are
making an exit to make sure they are no where around when the gold
scandal comes. In the past they have switched sides on issues when
it was to their advantage. And now this move is most appropriate
I have to hand it to Bill Murphy for explaining it
best the exit of N. M. Rothschild from the gold market:
“ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL
"S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004
Anyway, gold is eventually going higher long term
barring short term price fluctuations. The gold game is becoming
ever more interesting by the day. And a game definitely not for
the feeble hearted.
Last week we talked about the US involvement in Iraq & the sticky
mess in the Middle East. The following is an interesting comment
on the subject from a reader.
“When your definition of bringing democracy
is that of having governmental policies acceptable to U.S. interests,
there can never be an exit strategy. Someone must stay to protect
the puppet. The price for preventing democracy, or at least, domestic
control, is eternal vigilance.”
“Remember that the American quagmire in Viet Nam began when
the U.S. was unwilling to allow free democratic elections in a reunified
Viet Nam by 1956, as had been agreed to in 1954.”
The following email message is from a reader in Australia &
a tribute to one mans son, “David Jeremy Stewart.” Editor
“…My son died in 1984 of leukemia after
a two-year battle. …”
“…My son who died aged 9.5 had called on the Lord at
a young age circa 5 years old and had a sweet Christian faith. …He
had the worst possible type of leukemia and at diagnosis was given
only a few months to live…”
“… There was no complaint about all that
he had suffered (the lumbar punctures, blood tests, radiation treatment,
chemotherapy loss of hair etc). For some weeks he had known the
Doctors' verdict that he would die (unless God did a miracle).”
“HE DID NOT EVEN ASK GOD FOR ANYTHING. HE JUST
THANKED GOD AND TOLD HIM HOW MUCH HE LOVED HIM. …”
“Every hour or so he would regain consciousness and his pupils
would contract to normal size and he would see me and weakly say
“Just shortly before his breathing stopped,
the pupils of his eyes came to normal size and he lifted his head
off the pillow strongly in a way not-typical of the previous day
“His eyes focused on a spot that seemed to be
the junction of the ceiling and the wall, and with a triumphant
tone of amazement in his voice strongly said, almost shouted, "Daddy!”
Mr & Mrs. Lex Stewart & Family, Sydney, Australia
Someone told me this week that watching your mother
die is one of the hardest things you will ever do.
Well, I thought about this for a while. Actually, watching my mother
live these past several decades has been pretty hard also. My mother
was one wild, independent & untamed character & to try &
keep up with her just wore a normal individual plum out.
A while back she decided to have a mid life crisis & went out
& purchased a new black Saleen convertible. This car is basically
a race car built for the streets. A short while later she &
her sister were heading to Mom’s condo on the beach in Florida
when she spotted another Saleen on the interstate with a couple
of teenagers inside that wanted to race. She took the challenge
& proceeded to race them at speeds of over 120 miles an hour.
That was Mom.
Nothing traditional about that woman. And now we watch her lying
on a hospital bed with maybe another hour or 24 hours of life left.
Cancer is tough & pancreatic cancer has to be the meanest &
fastest cancer out there.
First time I have watched a parent die. But I know that death is
part of the process of life & we are all of us marching in that
And I dedicate these thoughts & the memory of my mother to all
of you out there reading this who are presently on this journey
with one of your own loved family members or friend. Just make sure
you are personally ready for that final journey & that you know
for certain where you are going.
Well, let’s go over one more time the fact that the House
of Rothschild is SUPPOSEDLY exiting from the gold business.
Read the following.
“Investment bank NM Rothschild & Sons Ltd is withdrawing
from commodities trading in London. Rothschild’s main activities
in the sector are precious-metals and oil trading, and include its
position as chair of the twice-daily London gold fix.” mining-journal.com,
But now read the following.
“The group said it will maintain a strong presence
in the natural resources sector through its advisory, project financing
and corporate banking services, which provide the core of Rothschild’s
revenue.” mining-journal.com, 4-15-2004
I am afraid there are a few of you that did not quite
grasp that last text so for you folks we will say it again.
“…WILL MAINTAIN A STRONG PRESENCE IN THE
NATURAL RESOURCES SECTOR THROUGH ITS ADVISORY, PROJECT FINANCING
AND CORPORATE BANKING SERVICES, WHICH PROVIDE THE CORE OF ROTHSCHILD’S
Now what did the above text mean?
The venerable Rothschilds are not getting out of the
banking business & as the text states, “project financing
and corporate banking services, which provide the core of Rothschild’s
Let me put it another way.
Yes, the Rothschilds are abandoning a “figure
head” position within the gold market, but they will still
remain a powerful banking institution providing money to the gold
mining industry. Yes, figuratively they “appear” to
have departed the gold business, but in reality they will remain
a powerful banking entity continuing to provide money & therefore
controlling much of the gold mining industry.
Nice PR play, huh?
It always pays to read between the lines. And the
“lines” as I personally read them does not envision
the House of Rothschild abandoning neither their gold nor their
“Money comes & goes, but if you have the education about
how money works, you gain power over it & can begin building
wealth.” Robert T. Kiyosaki & Sharon L. Lechter, CPA,
Rich Dad/Poor Dad, 2000
Would you like to hear another secret that the “rich”
understand, but the middle class never quite grasp? Editor
“I often see people posting a sign in front of their house
that says, “For Sale by Owner.” Or I see on TV today
many people claiming to be “Discount Brokers.”
“My rich dad taught me to take the opposite tack. He believed
in paying professionals well, and I have adapted that policy also.
Today, I have expensive attorneys, accountants, real estate brokers
& stockbrokers. Why? Because if, and I do mean if, the people
are professionals, their services should make you money. And the
more money they make, the more money I make.”
“We live in the Information Age. Information is priceless.
A good broker should provide you with information as well as take
the time to educate you. …”
“WHAT I PAY A BROKER IS TINY IN COMPARISON WITH WHAT KIND
OF MONEY I CAN MAKE BECAUSE OF THE INFORMATION THEY PROVIDE. I LOVE
IT WHEN MY REAL ESTATE BROKER OR STOCKBROKER MAKES A LOT OF MONEY.
BECAUSE IT USUALLY MEANS I MADE A LOT OF MONEY.”
“A broker is your eyes & ears to the market. They’re
there every day so I do not have to be. I’d rather play golf.”
“The real skill is to manage & pay well the people who
are smarter than you…” Robert T. Kiyosaki & Sharon
L. Lechter, CPA, Rich Dad/Poor Dad, 2000
My mother died this morning at 8:20 AM, Thursday, 4-22-2004.
Her last hour we watched her breathing turn more & more difficult.
And then finally we watched her breath her last. And the reason
I share these thoughts is because everyone reading these words has
lost a loved one or is in the process of losing a loved one. And
to you I dedicate these thoughts.
I used to love talking about money to mom. She was a successful
business woman who knew how to make a dollar. Always good financial
counsel from her direction.
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“Gold is not simply going to $480, it is heading into the
final phase of this generational gold bull market to prices in excess
Jim Sinclair, 4-16-2004
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David N. Vaughn
Gold Letter, Inc.
April 23, 2004
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