Thai Guru's Gold und Silber ... (Informationen und Vermutungen)

Here is a small excerpt I received from a Café member who was talking about someone in the know who works for Citigroup, a defendant in Reg Howe’s gold price manipulation law suit:

"Well the other week I was at a similar City function and found myself sitting next to the same person and we started to talk about gold which he thought was a poor investment because the central banks rigged the market!!" At least this fellow would wink when God showed up.

As far as the trading for the entire gold session went, same ole gripe. Gold continues to mostly trade like no other market in history. It made its highs in an early spike and that was it for the day. The cabal’s NO MAS sign went up again.

Here is another irksome bit. Almost without exception, when gold runs up and is hit by the $6 Rule, or rises above key technical resistance, it is IMMEDIATELY sold off in the Access Market by The Gold Cartel. Every stinkin’ time. This time gold is down 50 cents. It is disgusting!

The gold open interest only fell 1050 contracts to 316,029 on yesterday’s dip. Must have been more spec shorting as the trade was buying on the way down to $435.

The silver open interest gave up 1021 contracts to 101,774. It has fallen 25% from its recent high. This is an enormous drop and suggests this market is washed out and ready to move up to challenge its old highs.

Gold is falling further and further behind in terms of euros, finishing the day at 328.30. Only recently it reached 344. To give you some idea of the extent of the gold price manipulation, the euro is a little more than 1 point away from making a new high. Gold is $15 from making a new high. The clandestine intervention in the gold market is an outrage. So is the silence from the wimps in the gold industry who let the crooks get away with this nefarious farce time and time again. The sad part is this interference with free markets is going to end badly for so many unknowing souls down the road.

The John Brimelow Report

Bear Curry for Christmas? Chinese Gold says no revaluation

Wednesday, December 15, 2004

Indian ex-duty premiums: AM $8.95, PM $9.56, with world gold at $436.15 and $437.60. High and extremely high: lavish for legal imports. After faltering initially, the rupee rose to a new recovery high: it has risen 2.2% in three days. The stock market rose to a new all time high amid foreign inflows described as "unprecedented". In essence, foreigners are buying Indian stocks and Indians are buying foreign gold. These sorts of premiums are normally associated with important lows in world gold.

Since the Indian close the currency appears to have risen further. India is supplying considerable dynamism to the world gold market right now.

By contrast, Japan’s contribution is modest. Open interest did edge up by the equivalent of 698 Comex lots to equal 112,378 NY contracts and Mitsubishi’s data implies a 3.6 tonne ( 1,157 Comex contract) gain in the general public long. Volume slipped 7% to equal only 14,223 Comex lots; the active contract slipped 2 yen but world gold went out up $1.25. (NY yesterday traded 36,649 lots; open interest fell 1,050 contracts.)

Chinese language markets are somewhat enigmatic. Reuters reports Hong Kong and Singapore dealers saying business is slow, but there are a couple of reports elsewhere which are more upbeat. One, via thebulliondesk.com reports the head of the China Gem Association saying, rather surprisingly that jewelry is now the third most important consumption item in China. See

http://www.chinadaily.com.cn/e…-12/13/content_399719.htm

Another, from the South China Morning Post points to the 45% increase in Shanghai Gold Exchange volume so far this year amongst other stories of expanded interest, which it attributes to re valuation fears.

Of course, any resident of China expecting revaluation would actually defer buying anything likely to be influenced in price by world markets. That is why the decisive move of Shanghai Gold Exchange prices to premiums over world gold this month (after four months of significant discounts, despite lower gold prices) is significant. Unfortunately, it more probably indicates revaluation is not coming, rather than any huge surge in Chinese gold appetite.

On Tuesday and early today, UBS noted:

"Decent bids supported the metal at the lows although the upside was capped by good selling offers around $438/oz. In Asia gold had rather a quiet session with some early offers capping any upside in gold before strong Tocom general public buying interest saw the metal climb near the upper end of the session’s range."

(In fact strength late in the Japanese day probably more reflected the entry of India.) The capping seller(s) had to work very hard during NY hours: they are likely to have to work hard tomorrow too.

The Gartman Letter, important in my view as a mirror of comparatively astute professional trading opinion, has started to waver in its gold negativism:

"Were it not for the fact that the public…has not been sufficiently liquidated out of their positions we'd very likely be buying somewhere around these levels. Having seen spot gold trade to $455 rather recently, the fact that it is back to the $435-438 level would normally be sufficient to entice us back into the fray. Our interest thus is rising, and when we trade again we shall be buyers of course." (JB emphasis)

I continue to think that we have not yet seen the 2004 high in gold – indeed that it might be quite a bit higher. For the next two weeks, the main physical markets will be open most of the time; the bear-friendly Western derivatives markets less so.

JB

CARTEL CAPITULATION WATCH

The DOW went up again, this time to 10,691. The DOG rose also to 2162, up 3. Meanwhile:

Rampant Insider Selling Raises Red Flags

By Rachel Beck
Associated Press
Dec. 14, 2004

NEW YORK - Talk about a double standard. While corporate leaders tout the benefits of investors owning their stocks, many executives seem to be running for the doors themselves.

Selling of shares by insiders - which includes executives and other top officers and directors at a company - has been rampant in recent months, with sales rising to their highest level in more than four years in November.

While no one can pinpoint an exact reason for that run-up, the implication is troubling since big insider selling is often considered bearish for the overall market as well as for individual stocks…..

-END-

08:30 Dec. Empire Manufacturing reported 29.93 vs. consensus 20
Prior reading revised to 18.86 from 19.76.
* * * * *

More bad news for the dollar, which put it on its keester this morning:

09:00 Treasury reports net capital inflows of $48.1B in October after $67.5B in Sep
* * * * *

US net capital inflows $48.1 bln, below forecasts

WASHINGTON, Dec 15 (Reuters) - Foreign investment in U.S. assets fell sharply in October to the lowest level in a year, according to a Treasury Department report on Wednesday.

Net inflows of capital totaled $48.1 billion in October, after an upwardly revised $67.5 billion in September, the Treasury's International Capital report said. That was the lowest level since October 2003, when inflows were $27.5 billion.

The report showed a lower-than-forecast level of foreign interest in U.S. assets. Analysts had expected the October data to show foreign inflows in the range of $50 billion to $73 billion, and one trader had said a net inflow below about $60 billion would likely be perceived as negative for the dollar.

Purchases of net domestic securities, a narrower measure that excludes transactions between U.S. residents and foreigners in foreign stocks and bonds, dipped to $63.3 billion in October from $64.7 billion in September.

Foreigners were net buyers of U.S. stocks in October after two months of net sales, according to the report. They bought a net $3.8 billion in equities in October after selling a net $3.1 billion in September.

Foreign appetite for U.S. government bonds and notes increased in the month. Foreigners bought a net $18.3 billion in October, up from $15.8 billion in September.

Market participants watch the report, informally known as the TIC data series, as a measure of foreigners' appetite for U.S. assets, and it is of interest to the currency market amid concerns about the American current account deficit. The October U.S. trade gap was $55.5 billion.

-END-

Oil bears did not like this news:

10:31 DOE reports crude oil inventories +(100K) barrels vs. expectations (1.5M) barrels
Gasoline inventories reported +1.5M barrels vs. consensus +1.1M barrels. Distillate inventories reported unchanged vs. consensus +1.0M barrels. January crude is trading higher in initial reaction to the data.
* * * * *

10:32 API reports crude oil inventories +2.4M barrels
Gasoline inventories (1.3M) barrels, while distillate inventories (2.2M). Net result is Jan. WTI crude trading above pre-data levels at $42.60, up $0.78 for session, and up $0.60 from pre-data.

What fun! China competing with India for cheap gold:

China sees gold-buying surge to hedge against declining dollar - report
Wednesday, December 15, 2004 2:16:28 AM
http://www.afxpress.com

BEIJING (AFX) - China is seeing a gold-buying surge as a hedge against the weakening dollar and negative real interest rates, the South China Morning Post reported, citing figures from the China Gold Society and analysts

The Hong Kong-based newspaper said the gold buying has prompted a booming trade not only in bars, coins and jewellery but also "paper gold", in which the investor does not take possession of the metal, but trades it like other financial instruments

Trading on the Shanghai Gold Exchange in the first 10 months of the year reached 515,447.1 kg, a rise of 45.35 pct over the same period last year, the paper said

In addition, Shanghai buyers snapped up all commemorative gold coins to mark the year of the rooster as soon as they came on the market last month.

-END-

Speaking of Citigroup earlier, leading Gold Cartel activist caught in usual business activity:

Citigroup targeted in Germany in market manipulation probe
Wed Dec 15, 3:57 AM ET Business - AFP

FRANKFURT (AFP) - BaFin, the German financial market regulator, is investigating US banking giant Citigroup for possible market manipulation in the eurozone government bond futures market, the Financial Times reported.

BaFin was thought to be nearing the conclusion of an inquiry into whether Citigroup's bond traders manipulated the Bund (German government bonds) futures market on the Eurex exchange last summer, the newspaper said, quoting people familiar with the probe.

The German investigation had been co-ordinated with a separate inquiry by the British regulators, the Financial Services Authority.

If BaFin finds evidence of market manipulation, Citigroup could face a lawsuit and the ire of European governments, which pay fees to bank for underwriting their syndicated debt issues, FT said.

Controversial bond trades by Citigroup have been under investigation since August.

The US giant flooded the cash market with 11 billion euros (14.6 billion dollars) in sell orders, causing rivals to rush to hedge their exposure in the Eurex market for German government bonds by selling the futures. About half an hour later, Citigroup bought back four billion euros of the bonds at a lower price, raising suspicions of market manipulation, the newspaper said.

-END-

A number of Café members sent me the latest on the ETF’s, with the sentence in italics catching their attention:

U.S. gold ETFs unlikely to steal volume from COMEX

Wed Dec 15, 2004 10:13 AM ET By Zachary Howard

NEW YORK, Dec 15 (Reuters) - New gold-backed securities traded on U.S. stock exchanges are unlikely to poach trading volume from the New York Mercantile Exchange's giant COMEX futures market, traders and analysts said on Wednesday.

Some market players have speculated that exchange-traded funds that track the price of gold will draw volume away from COMEX because the equities market as a whole is much more liquid than futures.

Indeed, individual investors and entities such as hedge funds and pension funds are more likely to enter the gold market via ETFs like bullion-backed streetTRACKS Gold Shares (GLD.N: Quote, Profile, Research) , proponents of those new securities say.

StreetTRACKS, sponsored by the World Gold Council, an industry body, offers investors an alternative to handling physical gold, which can be costly and complicated to store and insure.

The ETF made a much-hyped debut on the New York Stock Exchange on Nov. 18, when gold was at a 16-year high above $445 an ounce.

However, many gold sources see the influential speculative fund-type accounts that dominate the market sticking to COMEX trading because they are designed to track futures, not equities, while some of the ETFs' participants themselves also are hedging gold positions using COMEX futures and options.

"A large portion of funds that trade on COMEX are either CTAs (commodity trading advisors) or hedge funds, and they are futures-only funds," said Graham Leighton, vice president of precious and base metals at Societe Generale.

Those players probably will stick with trading on COMEX, rather than switch to ETFs, he said.

"The ETF is perhaps not big enough for pension funds," Leighton added. "You would have to build up an adequate open interest (in an ETF such as streetTRACKS) before the funds were probably allowed to trade."

Although turnover in streetTRACKS is high, gold market sources say the greater amount of gold backing the benchmark COMEX contract, versus the amount of bullion stockpiled in the streetTRACKS, should keep large players glued to COMEX.

Open interest in COMEX gold, which stood at a towering 22.6 million ounces of metal in the benchmark February contract on Tuesday, reflects much more gold than the roughly 3 million ounces of bullion currently stockpiled in streetTRACKS.

Open interest refers to the outstanding contracts for which an entity is obligated to the exchange because an offsetting purchase or sale, or delivery, has not been made.

One New York-based gold trader at a large bank said the debut of the ETF should actually draw new business to the COMEX market.

"The NYSE specialist for streetTRACKS is hedging in the COMEX market, so trading in the ETF comes back to the COMEX anyway," he said.

Overall, analysts say, investor appetite for gold remains strong enough that the market appears not to need to siphon trading activity from one area to another.

David Rinehimer, head of futures research at Citigroup Global Markets, said at a Citigroup Gold Investors Day forum on Monday he saw no indication that streetTRACKS had drawn liquidity away from COMEX futures, where open interest continues at near-record levels…..

For the full article:

http://yahoo.reuters.com/finan…15-13-33_n15351932_newsml

-END-

On the GLD note:

I was surprised you didn't excerpt any of Chapman's views on the gold ETF in last nights James Joyce Table commentary.

Fwiw, I thought you might be interested in this post I made on an extremely active message board a few minutes ago:

Investors Hub - Zeev's Turnips Patch-No Politics (ZEEV)Post #334674

From a posting by Heinz on the Silicon Investor website last evening, which confirms the negative gold sentiment, of which I have been pounding the table on of late:

http://www.siliconinvestor.com/readmsg.aspx?msgid=20850260

the Rydex pm fund has lost 50% of its assets from the top (mostly due to outflows).

i closely watch money flows in the sector, and institutional buyers and other big traders have been scooping up the gold stocks sold by small traders.
the sector put/call open interest ratio is close to a 52 week high.

gold timers have reduced their exposure from nearly 80% to less than 20%.

i also closely watch 8 different gold analysts with various approaches (technical, fundamental or a combination). of those, 2 are currently bullish, one doesn't know what to think, and 5 are bearish. this is the highest proportion of bears in this (admittedly small) sample since the '01 lows.

the gold futures put/call OI ratio is close to a 52 week high as well.

short interest in the sector has recently risen sharply after a brief dip over the summer months.

conclusion: the bullish consensus on gold, but especially gold equities, is far lower than everybody assumes. in fact, it can be said that skepticism is extremely high at the moment (no doubt partly on account of recent poor sector performance). a medium term rally in the sector has become highly likely at this point.

-END-

On the gold coin front:

Bill, check out Tulving http://www.tulving.com/goldbull.html

He's buying Pre 2005 Gold Eagles for $445.00 thats $9.00 over spot. Then if you scroll down to where he has Pre 2005 Gold Eagles for sale you will see 1 ounce SOLD OUT, 1/2 ounce SOLD OUT, 1/4 ounce SOLD OUT, He still has 1/10 Gold Eagles listed $46.05 ea. for mint tube of 50 coins.
Brian

Derek Van Artsdalen from San Antonio:
Watching today's U.S. dollar action, I'm convinced that those who predict a "developing," "potential," or "coming" dollar crisis are not being honest with their readers or themselves.

This morning, the dollar is down about three-quarters of a point—so far. Only God knows where it will end the day.

But does it matter? In the last three years the Dead Presidents Collection has lost about a third of what little value it still retained after decades of miserable Federal Reserve "management."

Here's a 3-year picture of this sad tale:

[Blockierte Grafik: http://www.lemetropolecafe.com/img2004/dva1215A.jpg]

What baffles me is how anyone could view this chart and take comfort that "the dollar is due for a rally." Now that's what I call taking life's lemons and making lemonade!

In the past 10 weeks alone on the foreign exchange, our revered greenback has shed another 10% of its worth. Look at the steady decline on this next chart:

[Blockierte Grafik: http://www.lemetropolecafe.com/img2004/dva1215B.jpg]

The average American, if he thinks about currency crises at all, thinks about them only in terms of highly indebted Third World nations, such as Argentina, Brazil, etc. What poor Joe Sixpack doesn't realize is that Uncle Sam is now the world's largest debtor, and his debts are growing exponentially. Will poor Sam be forced to deal with his debts the way his Third World neighbors often do—by defaulting on them? I wouldn't rule it out.
So who cares if the dollar charts' internal indicators point to a possible rally? The dollar has staged periodic rallies all the way down for the last three years.

To say the dollar is "heading" toward a crisis would be like the captain of the Titanic saying after his ship hit the iceberg that it was facing a "potential" disaster. That's crazy. The disaster was the collision itself. The ship was in crisis the moment that block of ice ripped a hole in her hull.

To stay with the overused analogy, the Good Ship Dollar has already struck a drifting mass of ice, which is comprised of the triple deficits and an uncontrolled Greenspan money machine. So the damage is done. The crisis is already upon us. See what I mean? The only real difference between this country and a banana republic is that our President and his treasury secretary aren't running around in sombreros! (Maybe they can't afford them. If sombreros are anything like oil, food, natural gas and other basic commodities, they're probably getting fairly pricey.)

My point is that a dollar crisis is not "coming." It's already here. We're up to our indebted necks in it.

Some people declare, "The market never does the obvious." They ask, "Isn’t anticipating a dollar rout the ‘crowded’ trade? If almost everyone believes a dollar crisis is inevitable, can it really happen? Can a couple of billion dollar holders possibly be right?"

To which I reply, "You're damned tootin' they can!" The only thing getting ‘crowded’ is the exit. In fact, the very thing that will continue exacerbating the dollar debacle is the fact that it is indeed obvious and that there are so many dollar owners watching their money continue to devalue.

This isn’t sour pessimism. It’s just a willingness to acknowledge what IS. People everywhere—including some pretty powerful foreign central bankers—are starting to unload their dollars precisely BECAUSE they see what's coming. I doubt they're convening with their colleagues and concluding, "We don't have to worry. The crisis is so obvious, there's no way it can happen."

Besides, what could they do to stem the dollar's decline? Buy even more of them!?? Get real. I mean central bankers may be sinister and power-hungry...perhaps even stupid. But they're not masochistic. And they always look out for number one. They will offload their excess dollars into every rally, thus ensuring that no rally will last. Smart citizens will do likewise before the exits become jammed and the crowd becomes an unruly mob.

In summary, Bill, it seems to me that until the U.S. shows some fiscal restraint and begins living within its means—a foreign concept to most Americans—I believe only one reasonable conclusion can be drawn: The U.S. dollar is heading for a disaster of Titanic proportions.

Watching as the hold fills with water,
Derek

The XAU rose a stupendous .85 to 100 on the nose. The HUI popped above 220, then went straight down and couldn’t close above that key level. It finished at a pitiful 219.38, up only 3.41

The latest on the tale of two planets:

*The Wall Street planet:

There is no inflation. The stock market will continue to roar ahead no matter what. Bond yields will continue to drop because economic activity is so strong. The dollar retreat is great for exports and will not inhibit foreigners from investing in the US. Just see the bond market action today. (What was all that strong dollar policy talk demanded by this planet’s people years ago all about?) Iraq is a huge success with democracy right around the corner, to spread throughout the Mid East. Gold is a barbaric relic and of little interest. Those who speak of gold price-rigging are conspiracy nuts. The Wall Street planet people are making money in the US stock market and smiling, while bowing to CNBC’s Lawrence Kudlow for his brilliance.

*The GATA-like planet:

Inflation is far higher than reported by Washington. The US stock market has been pumped up, is very overvalued, and likely to tank next year. The dollar has a long way to go on the downside, which will give impetus to foreigners to pull out of our financial markets. Talk of a strong dollar policy is farcical. The bond market is being pumped up by The Working Group on Financial Markets. Interest rates are going much higher, unless the stock market falls apart, when the exasperated foreigners finally pull the plug. Iraq is a disaster, which will have dire financial market consequences for the US next year. Gold will be the "go-to" investment of choice next year all over the world. The rigging of the gold price is clear as a beautiful sunny day in the Colorado Rockies. The GATA-like planet people continue to watch their gold share positions drift off into oblivion, even as gold stays comfortably in 16-year high ground. Those of us in the gold shares are grumpy and can’t believe how gold could go up so much this year and how the shares could go down so much.

Analysis:

Living conditions might be a bit more comfortable these days for the Wall Street planet people crowd. Unfortunately, a meteor is headed their way and is on course for a direct hit. Next year, when it becomes apparent their planet is in big trouble, they will be streaming our way. By then our real estate values will be quite expensive.

***
Santa Claus is buying gold like crazy this year, increasing demand and siphoning off supply from the Chinese, Indians, Arabs, etc. It is driving The Gold Cartel nuts. If he keeps this up, we will be the ones smiling in a couple of weeks.

GATA BE IN IT TO WIN IT!

MIDAS

From my friend Mahendra last night:

Dear Members,

Few of my members have asked me on future move of Palladium because it has been moving down.

Here is my view - I am expecting it to move up very strongly from Friday and once again I am confirming it reaching $370 soon. My outlook for next year is also very positive. Last year, I recommended at $180 and we all know that in March this year it reached $340. Prices of palladium should turn around in the next 72 hours.

Grain should be in your buying list.

Metals looks very positive from here. I am ignoring all negative noise from expert because I see they (gold/silver) performing strongly so no need to waste my important time to listen wasteful commentary (FROM EXPERTS!!!!).

Natural gas look positive as I mentioned in my newsletter.

Avoid trading in currencies, dollar may fall quite fast now to new low before it start gain in near future.

Stock Market - My final date on collapse of stock market is in next week on 21 December. I know many must be very disappointed with my stock market prediction. During the first quarter of 2004 I recommended get out from buying position when Dow was at 10721, after that It went down and came back twice. In Jan 2000 many of my followers got very unhappy with me (though I advised them to buy tech stocks 1996) because market was rising continuously in the months of Jan and Feb 2000 and I recommended to get out from Technology stocks in December 1999, finally it happen in the month of March 2000, since then they have been saying that I saved them from big disaster. I am not trying to convince on my market prediction because since last 12 years I never came wrong on this and I know this time also I will be right. Timing wise I was off by three months in 2000 so let see this falls is coming from 21 December or not.

NOTE: STOCK MARKET INVESTOR'S ARE VERY UPBEAT BECAUSE THEY HAVE A GREAT FAITH IN MARKET AND FED BUT ON OTHER HAND METAL INVESTOR'S LOOK SCARE AND LOST BECAUSE THEY DOESN'T HAVE FAITH AND CONFIDENCE METALS.

I HAVE A GREAT FAITH IN MY WORK, THAT IS WHY I HAVE BEEN DOING IT SINCE TWENTY YEARS.

IN A FEW DAYS TIME WILL BE ANSWER ON ALL ABOVE PREDICTIONS.

TRADE WITH FAITH AND CONFIDENCE BUT TRADE CAREFULLY (trade with small money on my recommended area and I am sure you will have great return in the next 6 months) AS I WARN THAT "HIDDEN AND INVISIBLE TIME HAS ALREADY ENTERED FOR THE NEXT 39 MONTHS OF UNPREDICTABLE PERIOD."

Best recommendation for the next six months -

Buying side - Today's rate - SILVER (6.72), PALLADIUM(186), CORN(206), SOYBEAN(540), COFFEE(94) AND COTTON(42)

Selling side - STOCK MARKET (10700)

Avoid - Currencies and oil for time being. Soon I will starting guiding on these because currently they are moving in "no zone."

SAVE THIS EMAIL AND WE WILL TALK IN THE MONTH OF MAY 2005.

THANKS & GOD BLESS
Mahendra 14 Dec 16.17 Santa Barbara
http://www.mahendraprophecy.com