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

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June 10 - Gold $385.60 up $1.30 - Silver $5.72 up 10 cents

Hang In There!

You and I have a rendezvous with destiny. We will preserve for our children this, the last best hope of man on earth, or we will sentence them to take the first step into a thousand years of darkness. If we fail, at least let our children and our children's children say of us we justified our brief moment here. We did all that could be done. ..Ronald Reagan

GO GATA!!!

An all out assault by the cabal’s forces continues to depress the price of gold. The bullion dealers were all sellers early with the "fast funds" showing up as aggressive buyers. These "fast funds" often trade with the euro and on the dollar action. By day’s end the euro jumped .60 to 120.89, basis the Sep contract. The dollar lost .47 to 89.78. However, even with the euro rising like it did, the yen leaping to 109.26, up a full point, and oil charging back sharply, gold, after gaining more than $3 early, was taken down going into the close. A dismal ending to a dismal week – all orchestrated by The Gold Cartel, which continues to send a message to investors to stay away from bullion.

Oil may have bottomed as it surged 88 cents to $38.44 per barrel.

The gold open interest was little changed, falling only 329 contracts to 225,592.

Silver was steady to firm during the entire Comex session, regaining some of its recent losses. Not much else to report. The silver open interest fell 184 contracts to 83,625.

If GATA is wrong about the central bank gold loan numbers and about what they really have left in their vaults, The Gold Cartel and other western financial powers will suppress the gold price for the next five to ten years. In my opinion there would be no hope of gold moving dramatically higher. The Gold Cartel would continue to empty the 27,000 to 32,000 tonnes in its vaults and that would be that. I am that confident that the GATA camp is correct, i.e. they only have 16,000 tonnes or less left to suppress the gold price. The cabal camp is gradually running out of ammo. These wretched bums, who have, and will hurt so many uniformed innocent people around the world as all this plays out, are going to get their butts handed to them.

The gold fundamentals remain as good as they get. The reasons to own gold have never been better in history, which is just why the cabal is going all out to discredit it as a "go to" investment. Going through this dredging process is no fun, however, my bet is something is going to occur to blow this Orwellian operation out of the water. Gold will explode out of nowhere when we least expect it, which is why it is important to stay the course investment-wise.

Noyer of France is the new designated "Welteke" for The Gold Cartel. The former Bundesbank chief trotted out the same German gold sale stories time and time again the past few years when the cabal wanted the trading community to think gold bearish. Here we go again:

PARIS (AFX) -- Bank of France governor Christian Noyer said the central bank plans to sell part of its gold reserves to the market, possibly up to 500-600 tonnes.

The Bank of France holds about 3,000 tonnes of gold reserves, valued at around 30 billion euros. The French government is hoping to raise funds from gold sales to help reduce its budget deficit.

Noyer said the central bank will wait until gold prices are "appropriate" before agreeing the sale, adding that a decision will be made either by the end of this year or the beginning of 2005.

The bank will "certainly take into account the price and the situation of the market. If we feel that the timing is not appropriate to sell gold, then we would wait," Noyer told journalists at a presentation of the Bank of France's annual report.

"We have eternity (for that), more or less," he added.

Noyer has previously said that the state would not be able to count on direct revenues from such a sale. Proceeds from the sale of gold could be invested, with the accrued interest generating revenue for the Bank of France, which then could be paid as dividends to the state as the shareholder of the bank.

-END-

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The John Brimelow Report

Informative Refco

Thursday, June 10, 2004

Indian ex-duty premiums: AM $7.01, PM $6.25, with world gold at $383.60 and $384.40. Well above legal import levels. India is clearly an importer at these prices.

The aggressive seller seen in TOCOM hours yesterday was around today also. Mitsui-London comments:

"Active day on TOCOM for gold with funds heavy sellers again - about 10T yesterday and we think about 7T today. General public were on the bid however and considerable selling was absorbed."

Although volume fell 20% to the equivalent of 38,287 Comex lots, it was once again far higher than the recent norm. The active contract closed down 10 yen, with open interest rising 471 Comex contacts; world gold was down 20c from the NY close at $383.50. (NY yesterday traded 54,466 contracts – much higher that the 40,000 estimate – and open interest rose the equivalent of 329 Comex. Refco suggests fresh shorting.)

It is not actually clear from the TOCOM open interest and Trade house data that the public in Japan is a really serious buyer of gold futures. However as mentioned on Tuesday, the latest Reuters Tokyo kilo bar report showed an unusually high $1 premium, and Bridgewater Associates today published an interesting chart pointing out that Commodities in yen terms have reversed a 20 year bear market. So perhaps sentiment is indeed changing.

Yesterday was notable for Refco Research getting stopped out of a gold trade:

"TRADE RECOMMENDATIONS:

Stopped out Long 1 August gold from 393. exit at Thursday’s open."

This is the third time out of four that Refco Research has put on a position, only to get blasted out of it almost instantly (despite deep stops- the stop this time was $386.) That a highly attentive and informed observer of this type should have this experience is interesting. It suggests that the confluence of circumstances which encourage a traditionalist analyst to go long, motivates another party to start aggressive selling.

A noted bullion dealer surmises from the French gold sale announcement today that an Italian announcement is coming. This is probably correct. So far, there has been no indication that the Washington Agreement is to be broken – which is the only thing which matters.

JB

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CARTEL CAPITULATION WATCH

The Bank of England raised its interest rate ¼% to 4.5%.

The DOW (10,410, up 42) and the DOG (2,000, up 9) keep on truckin’ along. So much for the fear of higher interest rates. That only applies to the gold market, which is the one market which historically reacted to higher inflation – back when the US had free markets. Even the bonds are yawning. The Sep bond rose 11/32 to 103 19/32 and ended up FLAT on the week. The stock market, with higher interest rate fears the talk of the town, made substantial gains.

US economic news out this morning:

8:29am U.S. 4-WEEK AVG INITIAL JOBLESS CLAIMS RISE TO 346,000
8:29am U.S. WEEKLY INITIAL JOBLESS CLAIMS UP 12,000 TO 352,000
8:30am U.S. CONTINUING JOBLESS CLAIMS FALL 106,000 TO 2.88 MLN
8:30am U.S. INSURED UNEMPLOYMENT RATE FALLS TO 2.3%
8:30am U.S. MAY IMPORT PRICE INDEX RISES 1.6%
8:30am U.S. MAY EXPORT PRICE INDEX
8:30am U.S. MAY EXPORT PRICE INDEX UP 0.3%
8:30am U.S. MAY IMPORTED PETROLEUM PRICE UP 10.3%
8:30am U.S. IMPORT PRICES UP 7% YEAR-OVER-YEAR
8:30am U.S. EXPORT PRICES UP 4.3% Y-O-Y, MOST IN 10 YEARS

-END-

The jobless claims were 16,000 higher than expected and the import price number was double what the pundits predicted. Not good for the US stock market, dollar and gold bears on all counts. "So what?," say the Orwellians. "We will take the markets where we want to take them for the good of America."

The pundits were honing in on the import price number which skyrocketed to 1.6%, which is running 7% higher on a year over year basis. This probably tells us why the PPI number was cancelled. What the Orwellians are doing is an abomination. Yet, a worse outrage might be the silence of Wall Street and financial press about what is occurring. As each month passes, we see more evidence that a Mussolini-type economic fascism has crept into the way America is run from Washington to Wall Street. The gold price is rigged, the DOW is propped up and the US economic numbers are either hedonized or silenced. As a result, extraordinary imbalances continue to build in the US economic system, all of which must be reconciled one day. "If you want to dance, you have to pay the fiddler." This fiddler isn’t coming cheap. Americans will find this out down the road when our stock market tanks as the "chickens come home to roost." Most won’t know what hit ‘em. Only then will the press be outraged and look to assign blame and find the culprits. Of course, by then, it will be too late for the average Joe and Jane. The "horse will have left the barn."

The PPT working overtime:
NEW YORK (Dow Jones)--Program trading, the simultaneous purchase or sale of stocks in a single transaction, made up 54.9% of average daily shares traded in the first week of June, surpassing a record 54.1% in the previous week... -END-

GATA’s Mike Bolser:

Hi Bill:
Yesterday I jumped the gun a bit and posted the permanent operation of $1.035. It should have been posted today as today was it's delivery date (A thoughtful reader brought this to my attention and I am always grateful for this).

The pool fell a bit today but is still relatively high at $39.38Billion (after the correction). The Fed added $11.5 Billion in temps today somewhat offsetting a larger expiration. Thus the primary dealers will have a bit over $30 Billion until closing time today.

Miracle of miracles, the DOW is UP at this hour. Who'da thought? It is fun to watch the propagandists attribute the rise to...whatever. Market action (caused by intervention) creates commentary on the nearest semi-plausible cause that fools choose to believe.

Those pundits (including the biggest of Wall Street names) using backward looking "technical analysis" to try and predict the DOW are hopelessly burdened by their own dogma. It works fine in a free market but their work is useless in today's world of Fed intervention. Worse, many of them just can't make themselves admit it, for to do so would be to admit their paid services aren't worth the fees.

Mechanics of control

The repo pool is an elastic support mechanism that relies on the collective action of a group of Fed primary dealers who are compensated via permanent open market operations and the profit derived from holding temporary government securities. Some of these holdings go into the futures market to drive the DOW and may also aid in the currency market support. The daily tracks of this DOW support can be viewed in my "repos" chart at:

http://www.pbase.com/gmbolser/interventional_analysis

A careful examination of the repo chart shows a good correlation between the red 30-day ma of the pool and the green DOW moving average. The permanent open market operations shown in orange spheres are also correlated to up moves in the red repo trace trace which push up the DOW.

Note that there is a need in the mechanism of control for the interventionist to know the future as much as possible so as to compensate for known future weaknesses and to take advantage of known future opportunities.

For example, if a known negative event lies in the future, the Fed needs to have the ability counter it with a positive action with as much lead time as possible. In this way, surprise shocks are avoided. The Fed did this in the "Iraq War Rally" a can be plainly seen in the chart. The repurchase agreement issuance fulfills this need to control the future by having an expiration schedule that can be mapped into the future (maximum 28 days) to provide peaks in market liquidity on those days in the near future when they will be most needed. The astute trader can look for these large expiration days and take long DOW positions to ride in the Fed's wake. One must never forget however, that the Fed's wake is made only of paper.

For suppressing the strategic commodities there is a similar Fed need not only to see the future but also to have an organization to obtain the necessary physical stocks needed to sell. The Strategic Petroleum Reserve (SPR) is the functional equivalent of the Fed's repo expiration schedule. From it crude oil is sold to suppress the price of oil. Only a few people know the state of the SPR's unsold reserves but we can guess that it is pretty low these days. Indeed, fuel prices are high AND the US has an army in the oil-rich Middle East as further evidence of SPR weakness.

In the most strategic commodity of all, gold, the control mechanism is far less elastic than the DOW and much more direct involving far fewer people so as to insure project security. However, the Fed's need to have adequate stocks of central bank vault gold AND to see into the future is still just as acute for gold as it is for the DOW and oil, maybe more so.

How they manage that future determines whether they win or lose in this biggest and most crucial of all wars.
Mike

Update from The King Report:

The de-leveraging of The Street reappeared on Wednesday due to Easy Al’s harsh warning of rate hikes. Most everything fell while the dollar soared. The Fed did a $1.035B coupon pass (2s & 3s) in front of a Treasury Auction (Don’t you just love freely traded markets?), but the market ignored it.

This forced central banks to take 56.6% of the $15B of the Treasury Auction of 5s. Dealers ate 42.9%. Once again purported good auction results were kyboshed by the reality of just who had to buy the auction to keep things jiggy. This produced a spirited sell off in bonds.

Then the fun began. Suddenly the BLS announced that today’s release of PPI would be postponed and not released until Tuesday at the earliest. Bonds rallied in relief. An ugly PPI, and it should be due to soaring energy prices in May, could produce a very nasty 10-year Auction today. Gotta get them bonds sold, you know. Freely traded markets, my Greenspan.

A reporter from a great metropolitan newspaper told us that he called the BLS’s CPI division to see if they too had difficulty tabulating numbers that should be ready for release. We’re told they chuckled and said they were ready to go with the CPI.

The storm about the CES Birth/Death Rate continues as more brokerage firms try to downplay the ‘adjustment’. And of course some dopes are trying to label people as ‘conspiracy believers’ if they don’t swallow all of the BLS pap. What’s really funny is these people work at firms where conspiracies exist regularly in the pursuit of money. What really infuriates some Wall Street economists when the veracity of government numbers is questioned is the fear that they might have to actually do some work. Most of these guys & girls have been trained to just punch in government numbers into a model and then make projections. If one acknowledges that the data is inaccurate, then one must get valid data. And that would crimp long lunches and even longer recreation breaks. Of course there is a subset of economists and political operatives masquerading as economists that are upset because the braying about inaccurate government statistics might contradict ingrained biases…

With all the hoopla over the CES Birth/Death Rate, we decided to call our astute friend Lacy Hunt of Hoisington Management. We asked Lacy about the BLS’s methodology of using the B/D Rate in the payroll survey. Lacy said the BLS takes the B/D Rate number and adds it to the NSA payroll jobs counted. Then the BLS seasonally adjusts that total. And yet there are Wall Street economists that try to have us believe that the surge in that number is not significant. It’s as significant as any job number in the NSA count. It makes no difference where the jobs came from – and the math speaks for itself.

With that issue clarified Lacy brought to our attention the fact that the Household Survey shows pronounced weakness both quantitatively and qualitatively. The Household Survey is a random sample of about 60k people. The May Household Survey shows a 196k jobs gain, but 137k (70%) are self-employed jobs, which have lower benefits. Here’s some more of the bad news: unemployed increased 39k; Non-farm Wages & Salary Working Jobs fell 95k; Full-time jobs fell 200k, while part-time jobs increased ~423k. (The discrepancy in math is due to multiple job holdings.) Involuntary part-time jobs increased 134k to 4.6m and are 107k higher than last year.

The average duration of unemployment rose to 20 weeks in May from 19.7 in April. The median weeks unemployed increased to 10 in May form 9.6 in April. Is this the boom that so many herald?

Then Lacy turned his attention to consumer sentiment surveys, which we have also been noting. The latest ABC/Money poll fell to -19 from -11 on May 2. The ‘buying climate’ component fell to-32 from -22 on May 2. This is the lowest reading since 3/23/03. The crux of the argument: Random Sampling in the form of the Household Survey and various consumer polls show economic deterioration that is not consistent with the Establishment Survey gains of the past few months. Go ahead, you can send this to economists for comment. But try to ascertain if they were the economists who trumpeted the Household Survey when it was at odds with the then soft Establishment Survey.

-END-

Why am I spending so much space to the details of the jobs report via the fine work of Bill King? Doing so because I believe it is a key to what is really going on out there in the US economy and will prove to be critical information to have in your back pocket in the months to come.

Bottom line from the way MIDAS sees it:

*The economy is much weaker than let on by the Fed, Wall Street and the Bush Administration.

*The US economic stat numbers have been pumped up for election purposes.

*The effects of the massive government stimulus, tax cuts and depression-like low interest rates are wearing off.

*The Fed has put itself between a rock and a hard place. They know the numbers have been fudged and have been cheerleading the markets themselves. Now, with Fed decision time coming, they realize the risk of interest rates going up at this time.

*We are in uncharted waters as far as the US financial system is concerned. The economic picture is worse than projected, inflation far higher than acknowledged.

Meanwhile, major US financial institutions are loaded up with tens of trillions of derivatives positions on their books. No one knows how a rise in interest rates during this fragile period might affect them. A rise in interest rates can only exacerbate that potential financial market problem and this one too:

Increase in foreclosures...

http://www.stevequayle.com/New…/040608.foreclosures.html

A Dream Foreclosed: Residents of the Region Are Losing Their Homes In Record Numbers

-END-

The Bush Administration and Fed adjust economic numbers when it suits them and fail to when it does not. From Sarge:

If the gubbernmint uses seasonal adjustments in all their important reports, why don’t they use seasonal adjustments in this one?? And what the heck is "nonfinancial debt?" All the debt I have ever seen involved finance of some kind. LOL

Reuters
Household Wealth Reaches Record $45.153 Trillion
Thursday June 10, 12:15 pm ET

WASHINGTON (Reuters) - U.S. household wealth grew to a record-high $45.153 trillion in the first quarter of 2004, boosted by rising real estate and mutual fund values, the Federal Reserve said on Thursday.

In its quarterly "Flow of Funds" report, the Fed said household balance sheets rose $665.5 billion over an upwardly revised $44.488 trillion figure for the fourth quarter of 2003, despite a dip in the value of corporate equities. The net worth data is not adjusted for seasonal variations.

Total U.S. borrowing, excluding the financial sector, rose at a seasonally adjusted 8.6 percent annual rate in the first quarter, up from a revised 6.4 percent rise in 2003's final quarter.

The Fed said the pickup in domestic nonfinancial debt mainly reflected faster borrowing by the household sector as well as federal, state and local governments.

The total level of nonfinancial debt outstanding at the end of the first quarter was $22.781 trillion, it said.

-END-

Just a precursor of what is to come:

Posted: Wed Feb 11, 2004 11:06 am

Fraudulent U.S. Bank Derivatives Behind Parmalat's Insolvency
by Michael Edward

…It is no coincidence that the 3 U.S. banks directly involved with the Parmalat scandal are those who hold the highest amount of derivatives:

1 - JPMORGAN CHASE BANK - $33 Trillion, 700 Billion
2 - BANK OF AMERICA - $13 Trillion, 800 Billion
3 - CITIGROUP - $11 Trillion…

http://worldvisionportal.org/WVPforum/viewtopic.php?t=176

-END-

Silver demand item in from Tokyo:

Hi Bill,
FWIW, Shiseido has recently released a line of silver based deodorant products. I saw a few of them at the convenience store last night:

http://www.shiseido.co.jp/ag/workofag/index.htm

I don't know how much silver is in each bottle, but I would guess they will sell tens of millions of bottles each year.
Warm regards,
Thomas

On Richard Russell’s notion there is a significant short dollar position out there, which is the reason to be long the US dollar:

Debt is not a true short on the dollar, because the dollar has no real substance in a fiat currency. A debt can be considered a short on gold in a currency that is backed by gold, since you are promising to pay gold at some future date. This is why a central banker recently referred to gold as a 'yoke.'

Given a fiat currency, and given systemic debts that cannot be repaid, which way do you think any government would choose to go, and what do you think can possibly stop them. The only limitation on the number of dollars that can be 'printed' is hyperinflation, as in the case of the Weimar collapse in which they were faced with unpayable war reparations.

Being short on fiat is like being short on "I love you" and "the check is in the mail" or the corruption of central governments.
Jesse
Smoke continues to billow all over the place indicating there will be fireworks coming out of Washington in the weeks and months to come.

TENET LIED UNDER OATH TO 9/11 COMMISSION ABOUT 8/24/01 MEETING WITH PRESIDENT - AGENCY COMPOUNDS MISREPRESENTATION

* CIA Statement Omits Key Date From List of Bush-DCI Meetings in Weeks Before 9/11
* What Did Bush, Tenet, Rumsfeld and Gen. Myers Talk About in Crawford, TX Three Weeks Before the Attacks - One Day After the Flt. 77 Hijackers Were Watchlisted by the CIA?
From Mark G. Levy

Washington, DC, June 7, 2004 - Former CIA Director George Tenet committed perjury in his April 14 testimony before the 9/11 Commission when he claimed he had not met with President Bush in the month before the attacks on the World Trade Center and Pentagon. That misrepresentation in Tenet's testimony was noted within hours by Agence France-Presse. [Story reproduced below, & available at: HERE]

http://www.scoop.co.nz/mason/stories/WO0406/S00098.htm

-END-

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There are many fine Café members who do not like reading the material mentioned above. There are other sharp Café members who do not want to hear what Mahendra has to say for various reasons. Each to their own. I put up what interests me as a MIDAS reader and I feel, after 25 years of experience, also might concern and be of value to Café members regarding what can affect gold and other financial markets. If any particular item is of no interest to you personally, just skip it. Please understand there are thousands of others that are interested.

One other point I would like to make. MIDAS commentary is my own and may or may not reflect what GATA’s point of view is, especially on subjects which are only tangentially related to gold. GATA’s credibility is a separate issue from the MIDAS commentary in toto.

Speaking of Mahendra, so far so good on his oil and yen predictions this week. He may have nailed some moves there. Too early to tell if Thursday was the bottom for the gold shares. Thus far he did not get his $400 gold by week’s end. On balance, he still is WAY UP there on his calls.

Some upbeat news for the Aussie explorations:

Labor again says yes to flow through scheme
Michael Quinn
Wednesday, June 09, 2004

LABOR has again committed to introducing a flow through share scheme to assist the exploration sector, the second time it has done so in the last nine months.

In Kalgoorlie today, Labor's shadow minister for mining Joel Fitzgibbon and the local candidate Kevin Richards again said a Latham labor government would work with the industry and other stakeholders to develop a workable flow-through share scheme.

The announcement said the scheme would be appropriately targeted at small and independent exploration companies and "not open to abuse".

Fitzgibbon told MiningNews.net that details of the scheme would be provided before the next Federal election.

Today's announcement said that discovering new deposits was crucial to the sustainability of the mining sector and that a failure to do so would lead to massive job losses in regional communities.

Exploration expenditure has been on a steady decline for much of the last decade, though improved commodity prices and the consequent return of investors to the sector suggests the trend has been turned around in more recent times.

-END-

9:55p ET Wednesday, June 9, 2004

Dear Friend of GATA and Gold:

The May 7 decision of U.S. Magistrate Judge Daniel E. Knowles III to deny the motion of Barrick Gold to add a lot of other mining companies and bullion banks as defendants in Blanchard & Co.'s lawsuit against Barrick and its bullion bank, J.P. Morgan Chase & Co., reported to you by GATA on May 13, has been posted in full at Savegold.com, the Internet site established by Blanchard for monitoring the suit. You can find Judge Knowles' decision in Adobe Acrobat format here:

https://www.savegold.com/litigation/20040507.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Some follow up on the remarks reportedly made by Deputy Chairman of the Russian central bank Oleg Mozhayskov about GATA. If it is as it appears, the importance of these remarks cannot be underestimated and represent a staggering breakthrough for GATA. It means those in the central banking world allowed to speak with a free mind (you can be sure Mozhayskov’s speech was cleared), are willing to put the truth out there as they see it. Why? The Russian banker has no fear of being fired like his western counterparts. Remember the Café member who told us his central banker brother-in-law said speaking about what was really going on in the gold market was a "CAREER ENDER?"

More on the Russian issue from a fellow Café member:

Hello Bill,
A couple of years ago I emailed you that I sent this to a Russian official at the embassy in Ottawa.

Here's the article from the Cafe archives ( # 1672 Aug 17, 2001 ).....

http://www.lemetropolecafe.com…1672&SearchParam=thatcher

A few weeks ago I emailed to the general office of the Russian embassy in Eire, for the attention of Mr. Putin, complaining about the interference in the gold and silver markets as reported by GATA with an appropriate link.

I also asked if Mr.Putin would aid Norilsk with GoldFields mentioning that the Ruble would benefit from having a high gold backing. A MineWeb article had reported that Russian officials have stated that the SukHoi Log deposit would yield gold for the future Gold Reserves and that’s why only 25% (of Sukhoi or other RU deposits would be allowed for foreign ownership??..sorry link expired but it was recent).

Russia's Central Bank seems to agree with GATA and I wonder if there is a link now with the RU rules on their deposits and if all Russian Gold is going into Russian Reserves and not on the market.

Lastly, might sound crazy, but I thought maybe GATA could run a TV Info-Commercial (like the political parties do) on the late Ronald Reagan's aspirations to return to a gold or gold-exchange standard and officially re-value the US Gold Reserves mentioning how it might save the Dollar in these times.

That’s my say.

Best wishes,
Peter Iveson.

A couple of key gold points to stress:

*The Café sentiment indicator slipped to a 2 or 3 yesterday and remains there today.

*The interest in the smaller junior golds and explorations has sunk to levels last seen with the gold price over $100 lower than it is today.

*Many gold producers are not making any more money today than they were with gold prices $50 to $100 lower. Cost increases, among other factors, are eating their lunches. Miramar Mining Corporation, for example, just announced they are closing their producing mine in the Northwest Territories.

*Due to sharply higher costs, gold must rally $50 to $100 to make it worthwhile to explore and find new gold deposits. No sense finding gold if it will lose you money to take it out of the ground. In many ways the gold industry is back to where it was three years ago.

*The efforts by The Gold Cartel to suppress the price of gold of late have been successful. They have also been successful in facilitating the misery of the sick and poor in sub-Saharan Africa, a region decimated by disease and unemployment. If the price of gold were allowed to trade freely, it would be $100 higher, minimum. Instead of laying off gold miners, the gold producers in that region would be hiring like mad and, in general, the economies of those countries down there would be greatly stimulated.

The larger cap gold shares closed modestly higher with the XAU gaining .80 to 83.83 and the HUI advancing 1.93 to 185.11.

Investing for the big picture and intermediate-term seems to be going the way of the Do Do Bird these days. The past six months has not been fun, nor profitable, for gold and silver investors. Yet, while the pullback in gold, silver and the shares has taken a substantial bite out of our net worths, the big picture has barely been dented. This becomes quite evident when viewing the gold monthly chart:

http://futures.tradingcharts.com/chart/GD/M

Gold, silver and the shares remain THE historic investment opportunity of a lifetime. Hang in there!

GATA BE IN IT TO WIN IT!

MIDAS

Appendix

***Due to US financial markets being closed tomorrow, the next MIDAS will be from Vancouver on Monday – unless something dramatic happens in the gold market early on tomorrow.

Positive developments at ECU Silver:

Dear Shareholders,

Another key step in developing our Company was completed today, after months of metallurgical testing and due diligence. The Nichromet technology offers the Company the possibility of achieving precious metals recoveries equivalent or better than with cyanide extraction without the equivalent environmental liabilities. The process could be added easily to our current milling operations to improve overall revenues. Furthermore, the technology offers the possibility of getting extremely high extractions for precious and base metals when used at high temperatures. This latest possibility is being studied carefully because it has the potential to practically double the revenues that could be generated from some of our deposits. However, more work is needed if we are to go from the successful laboratory scale to an industrial scale.

Truly yours

Michel Roy, president
011-52-871-727-1061

WILL IT EVER END:
JUST IN - 6:40 Central DST:

Thursday, June 10

State Dept. Understated Terrorism Attacks

By BARRY SCHWEID, AP Diplomatic Writer

WASHINGTON - The State Department acknowledged Thursday it was wrong in reporting terrorism declined worldwide last year, a finding used to boost one of President Bush (news - web sites)'s chief foreign policy claims — success in countering terror.

Instead, both the number of incidents and the toll in victims increased sharply, the department said. Statements by senior administration officials claiming success were based "on the facts as we had them at the time. The facts that we had were wrong," department spokesman Richard Boucher said.

The April report said attacks had declined last year to 190, the lowest level in 34 years, and dropped 45 percent since 2001, Bush's first year as president. The department is now working to determine the correct figures.

Rep. Henry A. Waxman, who had challenged the findings, said he was pleased that officials "have now recognized that they have a report that has been inaccurate, and based on the inaccurate information they tried to take self-serving political credit for the results that were wrong."

Among the mistakes, Boucher said, was that only part of 2003 was taken into account.

Secretary of State Colin Powell (news - web sites) said Thursday the errors were partly the result of new data collection procedures. "I can assure you it had nothing to do with putting out anything but the most honest, accurate information we can," he said.

"Errors crept in that frankly we did not catch here," Powell said. The report showed both a drop in the number of attacks worldwide in 2003 and the virtual disappearance of attacks in which no one died.

Waxman said this week the administration had refused to address his contention that the findings were manipulated for political purposes. Waxman asked Powell for an explanation.

On Thursday, Powell called Waxman, D-Calif., who said he accepted the secretary's explanation that the mistakes were unintentional.

"He says it wasn't politically motivated so I will accept that," Waxman said. Still, he said, "We are still left with the fact that this report is useless until it is corrected."

Boucher said the errors began to become apparent in early May. "We got phone calls from people who were going through our report and who said to themselves, as we should have said to ourselves: 'This doesn't feel right. This doesn't look right.' And who started asking us questions," he said.

One of Bush's major foreign policy claims is that his post-Sept. 11 strategy to counter terror was showing success.

Ken Mehlman, the president's campaign manager, said in April, "Ultimately the most important thing that people want to see on the war on terror is, what is your vision for dealing with it and what is your record."

"Obviously one of the most important issues in this election is the question of how do we continue to fight and win the war on terror so we keep our homeland safe," Mehlman said.

At the same time, Vice President Dick Cheney (news - web sites) and Mehlman have questioned whether Democratic presidential candidate John Kerry (news - web sites) was qualified to conduct a war against terrorism.

When the annual report was issued April 29, senior administration officials used it as evidence the war was being won under Bush.

J. Cofer Black, who heads the State Department's counterterrorism office, cited the existence of only 190 acts of terrorism in 2003 as "good news" and predicted the trend would continue this year.

Deputy Secretary of State Richard L. Armitage said at the time, "Indeed, you will find in these pages clear evidence that we are prevailing in the fight."

His office did not respond Thursday to a request for a statement in light of disclosures some of the findings in "Patterns of Global Terrorism" were inaccurate and understated.

By BARRY SCHWEID, AP Diplomatic Writer

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http://www.bday.co.za/bday/con…23,1636158-6080-0,00.html

DRD ups offer for Australia's Emperor Mines

--------------------------------------------------------------------------------

Gold miner Durban Roodepoort Deep (DRD, DUR) has upped its offer for Australia's Emperor Mines and Emperor's independent directors have recommended the offer.

CEO DRD Ian Murray welcomed a decision by a majority of Emperor's independent directors to recommend the offer.

DRD's latest offer is for five DRD shares for every 22 Emperor shares from its previous offer of five of its shares for every Emperor share.

Zitat

"We believe our original offer was fair based on Emperor's share price. This new offer reflects our strong intention to proceed with the full takeover and add value to the Vatukoula Gold Mine in Fiji," Murray said.

Emperor Mines owns the Emperor gold mine located at Vatukoula in Fiji. The Emperor gold mine produces some 130,000 ounces of gold annually.

DRD has decided to waive all but one of the conditions to the offer.

The remaining minimum acceptance condition of 90% will be waived and the offer will become fully unconditional upon DRD becoming entitled to at least 50.1% of the total Emperor shares on issue.

DRD currently holds just under 20% of Emperor stock.

DRD's bid for Emperor is part of its strategy to decrease it dependence on its marginal South African gold mines and increase its Australasian gold mining interests.

I-Net Bridge

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Rand Gold Price Puts Strain On Mining Industry

http://allafrica.com//stories/200406100273.html

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Strike Paralyses Zimplats Operations

http://allafrica.com/stories/200406110324.html

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Selected world gold prices, Tuesday.

The Associated Press

6/11/2004, 11:29 a.m. ET

Selected world gold prices, Friday.

Hong Kong late: $384.55 unchanged.
London morning fixing: $384.55 off $2.35.
London afternoon fixing: $386.15 off $0.75.
London late: $384.90 off $2.00.

Paris afternoon fixing: Not Available.

Zurich late afternoon: $386.58 off $0.57.
NY Handy & Harman: Closed for holiday.
NY Handy & Harman fabricated: Closed for holiday.
NY Engelhard: $386.15 off $0.10.
NY Engelhard fabricated: $405.46 off $0.11.
NY Merc. gold spot month Thu: $385.90 up $1.40.
NY HSBC Bank USA 4 p.m. Thu: $386.00 up $1.80.

Copyright 2004 The Associated Press. All rights reserved.

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http://www.iii.co.uk/shares/?t…id=4997265&action=article

Breaking news

2004-06-11 07:46 GMT:

Cambrian Mining to raise 3.2 mln stg via 6.4 mln share placing

LONDON (AFX) - Cambrian Mining PLC said it will raise 3.2 mln stg, before expenses, through a placing of 6.4 mln shares at 50 pence each.

These new shares have been placed with Dynamic Mutual Funds, a Toronto-based institutional investor.

The proceeds will be used to maintain the company's equity interest in Western Canadian Coal Corp and to further develop other mining assets of the company.

As a result of the placing, Dynamic will hold an 18.6 pct stake in Cambrian.

newsdesk@afxnews.com

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ANC Looms Large in Brett Kebble's Western Areas Deal

http://allafrica.com/stories/200406110141.html

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http://news.goldseek.com/NedSchmidt/1086965744.php

Money Matters & Gold

By: Ned W. Schmidt, CFA CEBS

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HEADLINE from 2014:

LAST DOLLAR RETIRED

Washington: At a ceremony today on the steps of the U.S. Treasury, the last U.S. dollar was formally retired. With widespread circulation of privately issued Gold certificates, in both physical and e-money form, and Euros, little demand existed for the reminder of the painful years after the Greenspan era. Legislation introduced last year extended legal tender status to Gold certificates and Euros, and set the stage for the final dismantling of the now fully discredited Federal Reserve.

weiter....

http://news.goldseek.com/NedSchmidt/1086965744.php

Zwischenbilanz

344.3 Milliarden Dollar in 8 Monaten!

Hochgerechnet auf's ganze Jahr, beängstigende 516'450'000'000.- Dollar (516.45 Milliarden) Haushaltsdefizit. Vermute, zum Schluss wird's dann noch etwas mehr werden.

Gruss

ThaiGuru

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Government Running $344 Billion Deficit [Blockierte Grafik: http://us.i1.yimg.com/us.yimg.com/i/dn/ap4.gif]

WASHINGTON - The government ran a deficit of $344.3 billion in the first eight months of the 2004 budget year, according to the latest snapshot of the nation's balance sheets.

http://story.news.yahoo.com/ne…a_st_pe/federal_deficit_1