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

GoldenCentury

Super!!!!!

Die Goldstudie von Jon Embry

Da GATA wohl diese heute veroeffentlichte Gold Studie zum Haupthema erheben wird, hier mal ein kleiner Ausschnitt daraus

PRESS RELEASE

SPROTT ASSET MANAGEMENT INC. PUBLISHES GOLD MANIPULATION STUDY

Toronto, August 24, 2004: Sprott Asset Management Inc. (“SAM”) announced today the publication of Not Free, Not Fair: The Long-Term Manipulation of the Gold Price. The study represents the most thorough and detailed examination of allegations that the gold market has been subjected to severe price manipulation over the past several years.
Commenting on the landmark report, John Embry, Chief Investment Strategist stated: “We, at Sprott Asset Management, have felt for some time that the gold price has not remotely reflected its true underlying fundamentals. In response, we have conducted a comprehensive study of available information on the subject and have concluded that the evidence strongly supports those who believe that the gold price has been and continues to be suppressed.” The study may be read in its entirety on Sprott Asset Management’s website: http://www.sprott.com.

14. Conclusion

After examining and considering the preceding material, we do not believe it is possible to conclude that the gold market has not been subjected to severe long-term manipulation. This body of evidence is not illusory, and certainly not the work of paranoid people. We believe that it is the only explanation for gold’s prolonged weakness in the face of superb fundamentals. Excessive gold lending, unexplained trading anomalies, documented U.S. government gold market activity, and
blatant interventions post-Washington Agreement are but some of the signs that the visible hand of government has temporarily overtaken the invisible one of Adam Smith. Whereas the London Gold Pool was an overt attempt to maintain a fixed price of gold, there is strong evidence to indicate that today’s gold price managers are working covertly to fix an ostensibly free price. While the Gold Pool used central bank sales as the preferred method of price stability, the recent attempts to suppress gold have largely been implemented with undisclosed gold loans. The
results of these two gold market management eras are strikingly similar. Just as the Gold Pool lost a tremendous amount of metal in an impossible attempt to keep the price low, so too the central banks of today keep feeding their reserves into the market in a scheme destined to end with their gold permanently gone. Given a huge supply/demand deficit whereby the official sector is needed simply to keep the market in equilibrium, it is highly unlikely that many central banks will ever get
their gold back at anywhere near the current price. We find troubling the consistent unwillingness by mainstream gold analysts to debate, or even
acknowledge, the manipulation viewpoint in any depth. Such market watchers pretend, not convincingly, that the people marshalling the price management thesis do not possess either the knowledge or research with which to make a strong case for price-fixing in the gold market.

Nothing could be further from the truth. Only GATA and its associates have conducted in-depth studies on the U.S. gold reserve, and only they have explored and analyzed the very technical meaning of gold
derivatives statistics published by the official sector. And they alone have long warned that central bank loans stand at levels far greater than consensus forecasters claim. Therefore, we believe it is imperative that gold investors cast their eyes outside what has become an ignorant and stale mainstream towards a fringe whose thinking is far more intellectual than well-known gold market commentators have long been able to muster.

Like all manipulations, this one too will fail. When it does, the price of gold will explode. Until then, we urge the news media, gold industry and relevant arms of government to further investigate and expose what appears to be price-fixing on a scale of truly epic proportions.

SPROTT ASSET MANAGEMENT INC.

bognair

Wo ich war? Moechtest Du wissen?

Wenn ich es Dir verrate, fahren doch alle gleich dahin, und es waere bald aus mir Natur, Ruhe und Stressfreiheit. Moechte naechstes Jahr auch wieder hin.

Schoen dass Du hier bist!

Habe heute nicht viel Bock zum posten, nach diesem Gold und Silber "Abverkauf" heute.

Da wussten einige "Glueckliche" wieder , zig fach bereits erlebt, bereits vorher Bescheid. Es ist leider immer noch das selbe Insider (Primary Dealer) Spiel. Die Charts wurden heute wohl einmal mehr wieder kaputt gemacht. Du kennst Dich mit Charts jedoch viel besser aus als ich selbst. Vielleicht hast Du fuer uns eine passende graphische Untermauerung dazu?

Es geht aber trotzem bald wieder weiter hoch mit den Notierungen.

Hoffe Du hast die neueste Gold Studie von Embry bereits gelesen. Trifft den Nagel voll auf den Kopf. Embry ist auch kein NIEMAND, sondern sehr bekannt. Er hat in einer frueheren Aufsehen eregenden Studie 2001, bereits vor den ersten grossen Preisanstieg beim Gold und den Goldaktien auf dem Weg nach ganz oben, damals noch bei der wichtigsten kanadischen Bank arbeitend, weltweit fuer Aufsehen gesorgt. Seinerzeit hat's ihn schlussendlich seine Kader Stellung gekostet. Fuer die neuste Studie wird er wohl diesmal vorher bei Sprott die Einwilligung bereits eingeholt haben.

Gruss

ThaiGuru

[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]

http://www.lemetropolecafe.com

August 24 - Gold $402.90 down $7.60 – Silver $6.56 down cents

Sprott Asset Management Inc. Publishes Gold Manipulation Study

Zitat

Endurance is one of the most difficult disciplines, but it is to the one who endures that the final victory comes...The Buddha

GO GATA!!!!!

Until The Gold Cartel is defeated, what I and everyone else reports on regarding the gold market is mostly a bunch of noise. Every time gold rallies it will be crushed by the cabal monsters, just like we have seen the past few days. This is why this is HUGE news for anyone who intends to make money with their precious metals investments:

Sprott Asset Management Inc. Publishes Gold Manipulation Study

TORONTO--(BUSINESS WIRE)--Aug. 24, 2004--Sprott Asset Management Inc. announced today the publication of Not Free, Not Fair: The Long-Term Manipulation of the Gold Price.

The study represents the most thorough and detailed examination of allegations that the gold market has been subjected to severe price manipulation over the past several years.

Commenting on the landmark report, John Embry, Chief Investment Strategist, stated:

"We, at Sprott Asset Management, have felt for some time that the gold price has not remotely reflected its true underlying fundamentals. In response, we have conducted a comprehensive study of available information on the subject and have concluded that the evidence strongly supports those who believe that the gold price has been and continues to be suppressed."

The study may be read in its entirety on Sprott Asset Management's website: http://www.sprott.com.

Sprott Asset Management Inc. (http://www.sprott.com) is a Toronto based private company with over $1.6 billion in assets under management primarily for institutions, endowments and high net worth individuals. Sprott Asset Management Inc. is the investment manager of the Sprott Energy Fund, Sprott Gold and Precious Minerals Fund, Sprott Canadian Equity Fund, Sprott Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund LP II and Sprott Opportunities Hedge Fund LP.

-END-

This report has been sent to the major financial market press in Canada, the US and part of Europe. It also has been sent to every major gold producer and to many of the junior gold producers.

The reason why this report is so significant is that the "Draculan-like" Gold Cartel cannot withstand scrutiny. The cabal’s cross is THE TRUTH, which they have gone to Herculean efforts to hide from the investment world. A dispassionate report such was this one, which ties together so many FACTS, is going to shine a light on what the gold market has been really about for many years.

As more and more investors realize what the price manipulating cabal has done, they will want to buy more physical gold because the eventual outcome for the price will be more apparent. It must go MUCH HIGHER! Big player investment-types will come to appreciate this Gold Cartel is RUNNING OUT of enough physical supply to carry on their fraud. As this report circulates its way among other central banks, it will attract more Argentinas who will realize the value of adding gold bullion to their currency reserve positions.

When it comes to the major gold companies and the ones you are investing in personally, they will need some time to read this very detailed report and to digest its findings. Then, they should be queried what they intend to do about it, for there is no more important issue they can address. For if the price of gold is not allowed to rise like it should in a free market, it won’t matter what else they do as a firm. As gold company shareholders, your investments will remain a losing proposition if The Gold Cartel is allowed to continue on with their merry, scheming ways.

I reiterate. The price of gold should be hundreds of dollars per ounce higher than it is today and will be once The Gold Cartel is exposed in a major league way. It is up to GATA, gold producers, and gold shareholders to win the day. This brilliant report by Andrew Hepburn, John Embry and Sprott Asset Management is one the entire gold industry should run with. Let all Café members and GATA supporters do their part to make sure this report gets the proper attention it deserves. Spread the word, thunderbird!

For example, this is an interchange I had this morning with a European Café member who happens to be a highly regarded journalist:

Thanks willem,

Spread the word in Europe if you can. This can really help us end this nightmare.

bill

agree...already done....distributed to 700 professionals of my mailing list and on my website...

this will make a difference...

willem

Back to the mundane world of reporting on the corrupt casino crowd. Once again the cabal is pulling off another fleece of the funds, who have been suckered for the umpteenth time. These funds bought more yesterday on the pullback and are getting their clock handed to them today with gold under pressure from further cartel bombardment. The Gold Cartel continues to rip off the funds with clockwork precision as the funds continue to donate to the coffers of Goldman Sachs, JP Morgan Chase, etc., year after year after year. Meanwhile, these arrogants also laugh their way to their own bank as they fleece you also. Sick of it yet?

The gold capping last Friday was as blatant as it will ever get, as evidenced by the extraordinary 19,000+ contract open interest increase. Gold should have rallied $16, not $6, with that kind of buying power. It did not because word went out from cabal headquarters to STOP the advance. Yesterday and today were follow-through cabal efforts, which have been effective. The gold open interest rose another 4,745 contracts yesterday to 261,822 as further evidence of fund buying and cartel selling. As of today’s close, all those in the Gold Cartel who sold yesterday and Friday have nice profits. The specs are underwater who bought the breakout above $405.

Tired silver continues to retreat. While the funds were pouring into gold yesterday, they began to puke out their silver longs. The open interest dropped 2607 contracts to 102,324. The gold/silver price manipulators have the specs in these markets on a merry-go-round. They suck them in and then blow them out. Do you realize how much money these crooks have made over the past 8 years. It is staggering!

Potential biggie here:

The silver stocks in the Comex warehouses fell to a new multi-year low at 109,550,402, down 580,112 ounces.

Ted David of CNBC had the acting head of the CFTC on this morning to talk about possible oil price manipulation. When a market goes against what Wall Street wants, it must be manipulated. Yet, when we bring their attention to the most obvious market manipulation in history, that being the suppression of the gold price, they won’t touch it, as it is against the interests of Wall Street. Fair and balanced? What a joke! That includes you, Bill O’Reilly at Fox News, you loudmouth Irish blowhard!

[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]

http://www.lemetropolecafe.com

The John Brimelow Report

Big Brother IS watching us!

Tuesday, August 24, 2004

Indian ex-duty premiums: AM $6.42, PM $6.90, with world gold at $407.20 and $406.40. High: ample for legal imports. At these prices, India is prepared to underpin the world gold market. Standard London resumed regular updates of their Dubai kilo bar prices today

(http://www.standardbank.com/PreciousMetals/home.asp ); the premiums which can be deduced are still respectable.

Japanese liquidation has accelerated. Although the active contract closed down 12 yen, open interest fell the equivalent of 1,112 Comex lots to only equal 92,381 Comex contracts. The 1-day lagged Member’s position data suggests this may understate the pace of the public’s retreat from the market in the last few days. Aggregate volume was down 48% to the equivalent of 19,066 Comex lots. The two-week long rise in the yen seems to be eradicating any appetite on the part of the public for gold futures. (NY yesterday traded 40,312 contracts; open interest rose yet again, by 4,745 lots.)

Yesterday’s steady selling pressure has emboldened the Bears, with both JP Morgan’s "Metals & Energy Technical Strategist" and Commerzbank’s Technical commentary stressing that gold stopped on Friday at the upper bound of an uptrend channel. Morgan has put on a short and Commerzbank is musing about a move to the lower bound of the channel, at $385. Getting there, considering current premiums, would take a great deal of physical gold sales.

Undiscussed in all this is the significance of the huge, 59.7 tonne open interest increase reported yesterday. Open interest has now risen 39,235 contracts – 122 tonnes – in the past five business days, for a net gain of just over $7. UBS rather plaintively notes that their estimate that the Comex net long is about 15 million ounces still leaves 7 million ounces to the Q1 peak, but in fact the inflection rate is chillingly steep. Even yesterday’s down gold price day, which must have shaken out some of Friday’s more opportunistic longs, saw an appreciable open interest increase. One notes that John Embry’s 70 page discussion of gold price manipulation, posted this morning to his firm’s website http://www.sprott.com/ , has excited so much interest the web site keeps crashing. This seems understandable.

JB

[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]

http://www.lemetropolecafe.com

CARTEL CAPITULATION WATCH

As is so often the case, the S&P and other futures contracts came in a good deal higher as the PPT did what they could to set the market tone once again. Their efforts met modest success, however initial gains were not held for the most part. The DOW gained 26 to 10,099, however the DOG lost 2 to 1837. The S&P closed around 3 points off its opening call.

The dollar rose handsomely once more to close at 89.55, up .37. The euro fell.62 to 120.79.

The US economic news of the day:

07:45 UBS chain store sales index +0.1% in 8/21 week after (0.6%) in prior week
* * * * *

Redbook chain store sales index (1.0%) through 8/21 week vs June
This marks a slight deterioration vs the (0.6%) reading vs June reported last week.
* * * * *

10:00 July Existing Home Sales reported 6.72M vs. consensus 6.81M
June reading was revised to 6.92M from 6.95M.
* * * * *

GATA’s Mike Bolser:

Hi Bill:
The Fed added $6.5 Billion in temporary repurchase agreements today August 23rd 2004, an action that shot the repo pool up to $56.265 Billion but also kept its 30-day ma running flat in a "plateau" pattern. The DOW remain weakly up about 30 points at 11AM. The pool's 30-day ma runs at $45 Billion a value that is the highest of the series and what I see is the beginning of a sustained period of elevated repo pool conditions.

Looking forward there is a largish expiration on September 2nd of $11 Billion and IF the Fed chooses to offset that expiry with an equal amount, the pool will have an intra-day value of say, $20 Billion PLUS the carried amount giving the primary dealers a very large source of futures buying exactly at the beginning of the real political season. I am still holding to the notion of a DOW September rocket until, as a Blue Dress challenged president once said, "Until the last dog dies". I will none-the-less be happy to concede defeat.

Gold

Even though gold seems to have slipped back to $406.20 (PM Fix) the dollar went up somewhat offsetting the drop when we use the DIVG to value gold. More later.
Mike……..

Hi Bill:

During this period of Fed transition it is important to watch things very closely so as to obtain the earliest possible data on their new intentions.

Today they are continuing to ease the DIVG ma upward while giving the false impression of another attack. They may yet enter a cyclic down move, attempting to hold a defense line with a smaller wave pattern than they did in 2003.

The DIVG sits at 352.78. Some of my other metrics have yet to change downward in the MCDI and upward in the PM Fix but I'm expecting them to move those directions this week.

I am quite certain of the importance of the DIVG to the gold cartel and offer four telling characteristics (1) The dollar/euro parity ceiling defense at DIVG=323 (2) the clear cyclic defense of three waves above and below that line (3) the almost perfect linear retreat which began in Feb 2004 as a result of the Fed failure to hold the 200-ma below the target DIVG 323 level and (4) the choice of a retreat slope being exactly equal to that linear regression slope of the previous six months (beginning with a very bad DIVG upward loss day on July 21rst 2003).

These facts cannot be explained by anything other than human intervention in an effort to steer the 200-day ma. There are other implications that will be revealed in the future from this set of facts that shatter the Fed's dollar/gold propaganda machine.

The existence of COMEX preemptive selling, with its 3 and even 4 standard deviation episodes has provided an anchor which firmly holds the assertion of government intervention and serves as a warning to all that imagine a freely traded market in precious metals. That belief is a Fed engineered illusion.
Mike

Houston’s Dan Norcini on the soaring gold open interest:

Hey Wild Bill:
Open Interest figures just came down the wire feed and again, they are shocking. They show another massive increase in new shorts, (some 4,475 to be exact) absorbing every bit of fund buying yesterday as well as that of Friday. That yields a total of 23,807 new shorts thrown at this market by the gold cartel in the last two trading sessions alone. We are now at 261,822 on the total open interest.

Sadly, this is all too eerily reminiscient of their ploy merely a month ago when they piled on enough shorts to bring the Open Interest totals to 263, 574 before gold rolled over again near the 412 level basis December 04. With today's price action, some of the short term oscillators have already turned down once again exactly as they did a month ago.

Mahendra might have said that "no force on earth" could keep gold from rising this time around, but Alas, Mahendra, the cartel view themselves as demi-gods in their own mind and thus are the high and lofty ones who have condescended to grace us mere mortals with their heavenly presence. As such, they are not of this earth! (Just ask 'em - Last I heard they were ordering T-Shirts with the words "BE LIKE US AT THE GOLD CARTEL" printed on front and back). I even heard the rumor that Alan Greenspan had posed for a picture to imprint on a special edition Gold Cartel Sweat Shirt (If you order two of them, they will throw in some of those knives that let you cut through cans and still slice tomatoes with ease). I personally view them as better suited to the bowels of the nether regions (some refer to that as hell) but that is only the opinion of a mere peon, an ungrateful wretch who fails to recognize how greatly they have benefited society as a whole! Truth be told, the pond scum who make up this cartel feel they have been given some sort of God-given right to plunder the wealth of those who are prudent enough to hide themselves from the coming financial storm.

The short of it is that gold is in a reaction setback mode right now after having risen nearly $30 in less than a month. We will have to see where the buying support surfaces. I have a feeling that it is going to be at a higher level than last time. I am especially interested in how it handles the $400 region. Physical market buyers are indeed waiting under this market and will let it come to them. When they step up to the plate, we will more than likely take out to the reaction high near $417 this time around very quickly and easily. The dollar rally is a joke.

Time will tell.
Best,
Dan Norcini

What is so sad is that so many people associated with the gold market and who make commentary are affected with the Not Invented Here Syndrome. Because the discovery that the gold market is a manipulated one is not their own idea, most will not deal with the most important aspect of this market. You would think the recent and incredibly obvious price management (via the dramatic open interest rise versus the minimal price movement the past few days) would enlighten many individuals still analyzing gold as if it were a free market. Fortunately, the people at Sprott were willing to deal with the evidence and are mature enough to speak out. This is no small event. It is extraordinarily significant, as it will expedite the downfall of The Gold Cartel.

On JP Morgan Chase, the derivatives King:

Bill;
This Reuters article: http://www.reuters.com/newsArt…storyID=6038683.......... speaks of J.P. Morgan's talks to become a stake holder in state owned - Bank of China. They are already "banking" Iraq. GATA wonder what's next eh? Wouldn't you figure they have enough on their own plate?

Amount of notional increase J.P. Morgan Chase derivatives book increased in latest quarter – 3.2 trillion.

Who J.P. Morgan does all those trades with - ?

Assuming there are 20 hours in a day that J.P. Morgan can viably transact global business institutionally, trading minutes in a day – 1200

Assuming 22 business days per month, number of business days per quarter – 66.

J.P. Morgan tradable minutes per quarter – 79,200.

Increase in book size this quarter: 3,200,000,000,000 / 79,200 = 40,404,040 per minute.

Number of lunch and bathroom breaks traders at J.P. Morgan take - ?

Then again as evidenced by the numbers above, these guys really are good - aren't they?
best,
Rob

From Stephen Leeb, a well known money manager:

Aug 23, 18:10

Since the end of 1998 oil has climbed from about $10 a barrel to its current level of over $45. Not once during this entire period has any major Wall Street firm forecast a higher oil price one year forward. Wall Street, in other words, remains a subject for the psychology texts with denial and group thinking overwhelming any semblance of analysis.

–END-

It’s not only oil. I can’t think of one Wall Street firm who predicted the gold market rally either. Notice a pattern here? Both a rising gold and oil price is negative for Wall Street. Therefore, they refuse to deal with it honestly as to giving objective analysis to the public. Either that or most a bunch of Ivy League stuffshirt dummies.

This is another example of the kind of effort it will take for us to win the day:

Hello again Bill:

I think that we're about to turn the corner on the gold cabal. I believe the timing and contents of the Sprott report is an ominous development for the manipulators, released at a MOST inopportune time, given their latest egregious machinations. Their footprints all over gold and the US$ today could not be more obvious. I am e-mailing that report to as many financial reporting agencies as I can. The cabal is DEATHLY afraid of something, and we're going to find out what that is shortly.

I have been through the wringer with gold since 1999, yet I believe it is time to buy TODAY, and I'm acting on my information and beliefs. I surmise that our time is at hand; and I sense blood in the market waters. I am close to completing my buying of trading positions in Novagold and Golden Star today. I fully expect to regale all those who will listen in the future with tales of my purchases today.

My greatest temporal concern remains: what kind of country (and world) have we devolved into as a result of the unprecedented monetary fraud we have been subjected to by the banksters, who appear to own and operate the finances of the de facto U.S. government with impunity. Time will tell as always, and time is on OUR side.
best regards,

Tom K

Hi Bill,

Well, once again the gold crowd has proven it has all the dedication of a mercenary with a better offer. Someone at the dollar-diddling ESF screams "Boo!" and these metals guys exit their positions faster than a first-time fire walker over the red-hot coals!

I swear I just can't figure out what makes these gold bugs tick. Why are they so damned skittish? They dart in and out of position like water bugs. Things finally begin moving our way again, and these ninnies have all the conviction of a cliff diver with acrophobia.

Maybe these folks know something we don’t. Do they have a strong case for their unwillingness to take a stand? Let's have a look at two quick charts to find out...

Here's a multi-month chart of the U.S. Dollar. This chart was created using data through yesterday, but if we could see today's price action it would show us that the dollar came just up against the down-sloping top green line and bounced right back down.

[Blockierte Grafik: http://www.lemetropolecafe.com/img2004/DVA0824A.jpg]

Naturally, the price will have to break out of this symmetrical triangle in the next week or so. My only question is, why would anyone be banking that the direction will be UP!!???

The dollar's fundamentals stink to high heaven—perhaps as badly as at any time in the last fifty years. With nearly everything going against it (including the administration's need for a weaker dollar to have any chance for re-election) I can't imagine that anyone in his right mind would be a long-term dollar BUYER. The ship is sinking but the band plays on...

Now, here's the gold chart:

[Blockierte Grafik: http://www.lemetropolecafe.com/img2004/DVA0824B.jpg]

Bill, have a look at this graph and tell me just one thing: what on earth has this wimpy gold crowd so scared to take a stand?

This isn't just some six-week chart we're looking at. This thing is now firmly established for THREE YEARS! And look at that MACD indicator. It's coming off the most oversold condition since the major uptrend began, and folks are jumping ship—again!—as if Ronco just invented a gold machine and was selling it on cable (with a set of Ginsu knives, no doubt) for $19.95.

Sheesh. All I can say is that when (not if) the metals finally take off for the moon, those of us who stayed in the game can't possibly be compensated enough for having stuck with our convictions.

Frustrated but still on board,

Derek

The gold shares continued to work off their overbought condition. The XAU dropped 2.14 to 91.66 and the HUI lost 5.50 to 199.35.

The Sprott gold market manipulation report trumps everything else by far today. This is a highly regarded firm which has put its name and reputation on the line in an effort to expose one of the great frauds in market history. They are also going all out to give the gold industry ammunition to help itself. This a facet of the mainstream gold world speaking to the rest of their community.

Let all of us do our part and run with this extraordinary report and effort. It is time for The Gold Cartel to be put in their place and the price of gold allowed to be traded freely and in accordance with its natural supply/demand fundamentals.

GATA BE IN IT TO WIN IT!

MIDAS

[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]

http://www.lemetropolecafe.com

CARTEL CAPITULATION WATCH

Appendix

Dear Bill,

Once again I am happy to give my newsletter for this week to all your members. After reading this week newsletter, inventor's will come to know the reason and your strong support. Tomorrow I will announce that in how many days gold will going to hit $448. Looks exciting, so wait for alert news in next 14 hours.

Thanks Bill

Dear Members,

Today I would like to share some good news as I have already started writing the 5th edition of the "2005 World and Financial Prophecies". I expect to release it around the middle of December as usual or in the first week of 2005.

So far, major predictions on the market ("calls" in financial language terms) have closely matched the trends.

I can state that after 20 years, I have finally found the path in regard to very short term predictions and will therefore be able to better guide my members on short term positions. I am one thousand percent sure that astrology has a vital role to play in guiding investors onto the right path. It has always been a matter of concern to me because I feel that investors have been misguided by manipulators and newsmakers. Since most banks, large funds and financial institutions make their money in the market, it is sound to conclude that someone is losing. The common investor or small funds prominently features in this losing list. If big bank come in problem, government or Federal reserve will come forward and save immediately but who care about small investor's (Govt won't come forward and say that don't worry we will take care of your family). There is also problem in human nature because it accept negative energy very quickly. Let me focus on my work and here I just want to recap on USA:

If you read the USA section in my 2004 World & Financial Prophecies (Page 72): It says:

The economy data will continuous show strong recovering in USA during first quarter of 2004 and but before the mid 2004 trade deficit will spoil the whole scenario for investors. First time I will strongly warn investors to play safely in market because USA stock market index can go rock bottom.

In the early chapters I mentioned that the economy would face a major blow. Towards the end of 2004 inflation and unemployment will also rise.

In the stock markets, investors should book profits when they gain by 10% to 15%. For the first quarter few technology companies will rise but they will also follow the downward market trend. In 2002, many people did not believe that the technology sector would rise again but I clearly stated as follows:

…the question everybody is asking; ‘will technology survive even at this level and will there be any slight hopes of recovery?’ I would say that yes, the whole of the year 2003, technology and telecommunication stocks will do better compared to other sectors

2003 World Prophecies, page 36.

I went further to say that:

I still believe that companies with initials ‘A’ ‘I’ and ‘M’ e.g. Microsoft, IBM and Amazon will do extremely well and will reciprocate by 15 to 20 percent. Another company whose future seems bright is NASDAQ in 2003.

The US Dollar will remain weak throughout the year though there will be a few price fluctuations. The Dollar will remain weak until 2007 and I recommend that investors hold their money in gold or other currencies (For more detail predictions, please refer to the financial section in this book).

In all my books I have mentioned that if the USA wants to maintain its economic supremacy, then it should control oil and gold. The United States has attempted to gain control of oil resources through the conflict with Iraq. However, just by looking at the way oil prices are moving, anyone can see that all is not well. I would like to give some tips to USA investors about the prime sectors for investment in the year 2004. Firstly, the mining sector will dominate in terms of percentage gain, while power etc…

USA is a super power house and its major events have an impact on the rest of the world. For one year or two, the impact is negatively reflected in other parts of the world when the USA economy or stock market drastically goes down.

LET US SEE WHAT INDICATES FOR THIS WEEK. NEWSLETTER FOR 23 AUGUST TO 27 AUGUST:

GOLD

Last week’s performance of gold was in harmony with the wave of Jupiter, something that I have been expecting for a while. The second important thing that happened is that gold and silver prices went up on the third Friday. Both occurrences are very encouraging signs for future trend in metals as I saw last year when I was writing my book.

Last week I made two important statements in my newsletter:

THERE IS NO EXTERNAL POWER ON EARTH OR THE UNIVERSE THAT CAN BRING DOWN THE GOLD AND SILVER PRICES. DESTINY HAS BEEN WRITTEN AND I AM JUST PREDICTING IT AS IT IS.

I went further to assert that:

During this week from Monday evening before closing or Tuesday gold will say bye-bye to $400 for the next few years. I think that this is great and exciting news for gold investors. I also have very good news for gold stocks as I see the current prices for metal stocks being history.

During this week I see gold prices being upbeat and moving upwards except for a slight leaning towards the directionless zone on Tuesday. Those who do not want to stay in the uncertain situation on Monday or Tuesday should get out and get back into buying positions on Wednesday. I shall give an update of this on Wednesday. As I said last week, time is saying bye-bye to the $400 mark and there is therefore no need to remind you again.

Any minor down ward movement should be taken as a buying opportunity. Gold stocks performed well during the last week and they will give the best returns in the next few years. One should therefore think hard and long before selling metal stocks. Same I saw for technology stocks in 1996.

SILVER

My favourite commodity for 2004 is performing well. Monday and Tuesday may remain volatile or a bit on the downside but from Thursday it will have a great rise so don't miss this buying opportunity.

PLATINUM AND PALLADIUM

We are just a few days from a great rise of Palladium. Those who have not bought it should put some money in it. Platinum will remain stable during this week.

COPPER

Whole weak copper prices will remain stable but from this Thursday evening or Friday copper prices will have a great run and reach a new high in a few weeks.

OIL

This is second on my 2004 investment list and has performed extremely well, surprising both the investor community as well as economists. The first predicted target of $50 was almost attained last week but I now expect prices to remain on a down ward trend from this level. My advice is therefore that you get out from its buying position. I shall give the buying signal soon after this down ward trend, which will be around 10%.

STOCK MARKET

Markets are floating in the worst cycle that will soon give way to a major crash signal. Just as I recommended last week for short term buying, I hold the same for this week. However, always book profit on each rise because I will soon issue an alert on when to short/sell.

CURRENCIES

The movement of the Japanese Yen last Friday as per my newsletter prediction surprised everybody. The Yen is placed third on my list and it will remain strong from Tuesday. All other currencies will have mixed results except the Swiss Franc. The South African Rand is on the way to crossing the 7 mark against Dollar.

OTHER COMMODITIES

Coffee: Wednesday is a very important day for coffee and you should therefore wait for update on coffee.

Cotton: Last week because of Moon I made a good call on cotton. It gained 12% and I recommend that you hold your position.

Corn/Wheat: Buy at this level and sell at 5% gain. I see a strong performance from corn and wheat.

Soybean: I see high volatility on both sides in soybean prices during this week. I recommend that you remain away from it.

Thanks & God Bless

Mahendra 22 August
http://www.mahendraprophecy.com/

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http://biz.yahoo.com/bw/040824/245795_1.html

Press Release Source: Bema Gold Corporation

Bema Gold Responds to 'Mini Tender' Offer by TRC Capital Corp.

Tuesday August 24, 7:34 pm ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 24, 2004--Bema Gold Corporation (AMEX:BGO - News; TSX:BGO - News; AIM:BAU) ("Bema Gold") has received notification of an unsolicited, below-market "mini tender" offer made to its shareholders by TRC Capital Corp. ("TRC") of Toronto. The offering documentation, dated August 5, 2004, indicates that TRC has offered to purchase up to 12.5 million common shares of Bema Gold, representing approximately 3.5 percent of Bema Gold's outstanding share capital for a price of $2.90 per share in cash. Bema Gold does not in anyway recommend or endorse TRC's "mini tender" offer.
All dollar figures are stated in Canadian dollars unless otherwise indicated.

Shareholders are cautioned that the offer has been made at a discount of approximately 3.7 percent below the stock's closing price of $3.01 on the Toronto Stock Exchange, August 4, 2004, the day before TRC commenced the offer. The offer price is below today's closing price of $3.18. Shareholders are also advised that TRC has reserved the right to amend the terms of its offer, extend its offer, or withdraw its offer at any time at its discretion. Bema Gold advises shareholders to consult their investment advisors and exercise extreme caution in evaluating the TRC offer, and to take into account the offer price in comparison to the market price of Bema Gold common shares.

The Securities and Exchange Commission has issued an investor alert about "mini tender" offers on its web site at http://www.sec.gov/investor/pubs/minitend.htm. The SEC states that "mini tender" offers "have been increasingly used to catch investors off guard" and that investors "may end up selling their securities at below market prices." Bema Gold shareholders should be aware that many of the SEC's tender offer rules do not apply to "mini tender" offers. Bema Gold shareholders are cautioned that TRC has previously made numerous below market "mini tender" offers for shares of other companies.

Bema Gold shareholders who have already tendered their shares to TRC may withdraw them by prescribed written notice and procedures at any time before the scheduled expiration of the offer, which is 12:01 a.m. (Eastern Standard Time) on September 3, 2004. Shareholders may also withdraw their shares as set forth in TRC's offer to purchase.

Bema Gold is an intermediate gold producer with operating mines and development projects on four continents. Bema Gold's objective is to increase annual gold production to over one million ounces from existing assets by the year 2008.

On Behalf of BEMA GOLD CORPORATION

Clive T. Johnson, Chairman, C.E.O., & President

Bema Gold Corporation trades on The Toronto Stock Exchange and the American Stock Exchange. Symbol: BGO. Bema shares also trade on the London Stock Exchange's Alternative Investment Market(AIM). Symbol: BAU.

Some of the statements contained in this release are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding: the Company's projections regarding annual gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; and other risks and uncertainties detailed in the Company's Form 40-F Annual Report for the year ended December 31, 2002, which has been filed with the Securities and Exchange Commission, and the Company's Renewal Annual Information Form for the year ended December 31, 2002, which is an exhibit to the Company's Form 40-F and is available under the Company's name at http://www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

--------------------------------------------------------------------------------
Contact:
Bema Gold Corporation
Ian MacLean
Manager, Investor Relations
(604) 681-8371
Email: investor@bemagold.com
OR
Bema Gold Corporation
Derek Iwanaka
Investor Relations
(604) 681-8371
Email: investor@bemagold.com

--------------------------------------------------------------------------------
Source: Bema Gold Corporation

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http://www.minesite.com/archiv…aug-2004/zaruma250804.htm

Date : August 25, 2004

Zaruma Resources Anticipates Early, Albeit Modest, Copper And Gold Production In Mexico And Venezuela.

Often when one sees a company listed in Frankfurt as well as Toronto the German connection can be ignored as the listing has been taken for its cheap and cheerful characteristics, but virtually no trade takes place. In the case of Zaruma Resources it is a bit different as the CEO and President Thomas Utter is German and he has built a big fan club for the company on his home ground. Zaruma started life as a Norwegian private company which was reversed into Laminco Resources in 2000. By so doing it acquired a Toronto listing as well as the San Antonio gold project in Mexico, which include the Luz de Cobre copper deposit, and later the El Foco gold project in Venezuela.

A number of operators have had a go at San Antonio and appear to have come to the conclusion that the grade was too low. Dr Utter has taken a different approach by concentrating on a single target rather than spraying holes all over the place. The result is an initial gold resource in the measured and indicated category of 1.74 million tonnes at an average grade of 4.37 g/t containing 244,400 ozs gold for an underground operation at a 2.5 g/t cut-off and a gold price of US$375/oz and 551,000 tonnes at an average grade of 2.08 g/t to contain 36,700 ozs for an open pit operation at the same gold price, but a cut off of only 1.0 g/t. The data behind this estimate was obtained from drilling the Realito structure on the 9,700 hectare property where the resource occurs in closely spaced breccia bodies over a strike length of 700 metres.

The deposit is a porphyry driven iron-oxide-copper-gold system with the gold in pyritic, hydrothermal breccias and the copper in supergene oxidised , blanket mineralisation , breccia hosted and stockwork and disseminated sulphide mineralisation. With that mouthful of technical detail out of the way, the interesting part appears. The copper at Luz del Cobre, which attracted earlier explorers such as Alcoa, lies on a ridge and is 150 kms south of Mexico’s biggest copper mine at Cananae where Zaruma’s local manager used to work. Revised and detailed geological modelling has produced an estimated resource of around 6.6 million tonnes at 0.76% copper to contain over 50,000 tonnes of leachable copper. No official estimate is yet available, but this deposit could be mined by open pit methods and subsequently heap leached and treated through an SX-EW plant cheaply and profitably.

Mining this ridge should present few problems other than some fine tuning of the metallurgy, and it could generate C$8 to C$ 9 million/annum in early cash flow. This would enable the company to push on with exploration at San Antonio to enlarge the gold resource and move towards a pre-feasibility study. So far 4,700 metres of drilling has been carried out in 36 drillholes and the data obtained is supported by results from a previous operator in the mid 1990s. The Centenario zone on the Realito structure is still open ended and no account was taken in this resource estimate of Cerro Sapuchi which lies just 1 km north of Realito. In 1996, however, the resource there was estimated at 1.4 million tonnes at 2 g/t gold to give 89,000 ozs, though not to NI 43-101 standards.

The El Foco project is also of interest as it contains the Alcaravan deposit which could be a stand-alone , open pit, heap leach project. El Foco is close to the Las Cristinas mine operated by Crystallex, but in the days when Homestake was around it carried out some exploration on El Foco. The results obtained indicated that it was small beer, but Zamura has been more persistent and is intrigued by the potential of the saprolitic oxide gold resources which outcrop intermittently at surface and are called ‘mushroom heads’. It is these that have a history of being mined by garimpeiros which confirms their high grade nature and a pre-feasibility study is in progress on the Alcaravan saprolite deposit which is said to amount to 735,000 million tonnes at 2.4 g/t gold to contain 60,000 heap leachable ounces.

Zaruma is therefore moving towards early, albeit modest, production at Alcaravan and Luz del Cobre. The primary gold mineralisation at depth at El Foco has plenty of potential but Dr Utter would prefer to bring in a jv partner to fund the exploration programme as it could be costly. This is a wise move and one which will appeal to European investors who appreciate early cash flow and do not like to see companies returning to the market at regular intervals for more drilling funds.

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http://biz.yahoo.com/rf/040824…_gold_manipulation_1.html

Reuters

Canada report lends support to gold "conspiracy"

Tuesday August 24, 6:50 pm ET
By Nicole Mordant

(Amounts in U.S. dollars unless noted)

VANCOUVER, British Columbia, Aug 24 (Reuters) - Gold price conspiracy theorists got a credibility boost on Tuesday when a respected Canadian gold fund manager released a 71-page report arguing that bullion prices have been artificially depressed by central banks, bullion banks and hedge funds.

In a document titled "Not free, not fair: the long-term manipulation of the gold price," John Embry, the chief investment strategist at Sprott Asset Management, details incidents in the last decade that "collectively refute the idea that gold is a free market".

Sprott is a private Toronto-based asset management and research company managing more than $1.6 billion for institutions and private investors.

"We certainly do not look upon ourselves as crusaders, but the more we investigated the gold market, the more readily apparent it became that the gold price appeared, in the politest of terms, to be managed," Embry said in the report that he co-authored.

He said the gold price's moves seemed at times to be counterintuitive, going down on days when there were compelling reasons for it to rise.

"We avoid the word 'conspiracy' and prefer to instead believe that, at least initially, powerful groups -- central banks, bullion banks, hedge funds, etc -- were operating in their own self-interests and not necessarily in concert with one another," Embry said.

For several years, a small group of market players, who have become known as "gold bugs", have argued that evidence exists that the gold price has been manipulated lower for profit by some of the world's biggest financial institutions, gold producers and central banks.

This is most clearly embodied in an antitrust lawsuit pending against Barrick Gold Corp. (Toronto:ABX.TO - News) and J.P. Morgan Chase & Co Inc. (NYSE:JPM - News) in a Louisiana court by a New Orleans-based coin and bullion dealer.

Blanchard and Co. argues that the world's No. 3 gold producer and the U.S. financial giant colluded for over a decade to suppress the gold price. Barrick and JP Morgan have tried to get the case thrown out of court.

The mainstream gold and financial services industry has mostly shrugged off the gold bugs' arguments as nothing more than the hysterical conspiracy theories of a vocal fringe group.

The bullion price was last at $403 an ounce. It is down 3 percent this year but is 60 percent stronger than it was three years ago.

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http://www.bday.co.za/bday/con…23,1687751-6094-0,00.html

Squeezed by rand, gold miners battle costs on all fronts

--------------------------------------------------------------------------------
Cut in rates brings some relief to strapped sector, but Chamber of Mines chief economist says challenges remain
Resources Editor

THE recent 50 basis point cut in interest rates has brought some relief to SA's gold sector as the rand weakened, but the industry is still under pressure.

This warning came yesterday from Chamber of Mines chief economist Roger Baxter.

He said SA's gold sector would continue to try to bring down its costs in a tough operating environment. "Last week, the rand gold price averaged R83000/kg," Baxter said. "At that level, 40% of the gold industry was still loss-making."

He said the rand gold price had risen to R87000/kg yesterday "but that is back to the 2003 average". He said costs had continued to rise since then. "Water prices have gone up by 18% this year, which is too high," he said.

"Steel prices have risen more than 20%."

He said it was a continuing challenge to look at all inputs, and, where possible, keep costs under control.

"There has been a little relief (with the strengthening of the rand gold price) but our eye must not be taken off the ball," he said.

He noted there had been some progress in containing costs in the gold sector, with a quarteron-quarter fall of 2% in the second quarter of this year.

"This shows that industry is focusing on the costs it can control," Baxter said.

He said companies had been responsible in redeploying labour where shafts had become uneconomic to mine, and had squeezed suppliers where possible, " but there has been no relief from water prices or steel prices".

Baxter said he did not believe that Reserve Bank governor Tito Mboweni had given in to pressure from the mining sector and others when announcing the recent interest rate cut.

He said there had been scope to make the cut, because inflation conditions "were more benign than they had thought. The irony is that a fall of 50 basis points had such an effect on the rand."

He said there had been a debate about the factors keeping the rand so strong, be they high nominal interest rates or high dollar commodity prices.

"In all likelihood it is both," Baxter said.

He said the Chamber of Mines had been calling for some time for a wider airing of the economic issues related to the currency, but it had not wished to interfere with the independence of the Reserve Bank on its inflation targeting framework.

He s aid there had to be an understanding of the balance between the needs of importers and those of exporters.

Issues that needed to be aired included the economic fundamentals of the country, macroeconomic factors, the level of foreign exchange reserves, exchange control and SA's reliance on flows of short-term speculative capital.

"SA's performance on foreign direct investment has been relatively weak, and we need to unpack the reasons for this," Baxter suggested.
Aug 24 2004 07:01:08:000AM John Fraser Business Day 1st Edition

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http://www.minesite.com/archiv…-2004/kingsgate240804.htm

Minews Story

Date : August 24, 2004

Kingsgate Maintains Successful Exploration Results Around Its Chatree Mine In Thailand.

It is nearly two years since Mike Diemar gave a fascinating presentation on Kingsgate Consolidated, the Australian company operating the only gold mine in Thailand. Not long after that Mike handed over the reins to Steve Reid and the company has fulfilled all the targets set for it at the time. The only criticism which some observers have is that it is still a one project company. This is hardly fair as Chatree covers a large area and new discoveries are being made regularly around the mine and further afield. The company is on the lookout for new projects elsewhere in Thailand and the surrounding countries , including China, but as Steve Reid says, they would have a lot to live up to when compared with Chatree.

Gold production reached a record level of 51,797 ounces in the June quarter and this compares with production for the full year of 149,979 ozs. This performance reflects the increased plant throughput following the upgrade in December 2003 as well as higher grades with an average head grade of 3.8 g/t compared with the annual rate of 3.1 g/t. These higher grades from P pit reduced cash costs to US$135/oz which is in the bottom quartile on a world scale. However, they may rise in the months ahead as the waste to ore strip ratio increases. That having been said, production for the year to end June 2005 could well exceed last year and there is a high probability that mining of additional on-lease discoveries will help to minimise cost increases. As any experienced investor in mining stocks will confirm there are always variations in production and costs in the best managed mines.

The financial position is strong with net cash on hand of US$41.2 million and the company hedges its currency bets by having US$33.1 million denominated in Aussie dollars. Mention of hedging brings us to a thorny subject as Kingsgate had to accept a big lump of it, US$35 million to be exact, in Mike Diemar’s day as a quid pro quo for Macquarie Bank funding development of a mine in Thailand. It is worth remembering that at that time Aussie investors hardly gave a second look at projects in Asia such as Chatree and Oxiana’s Sepon project so equity funding was not a realistic option. This hedging programme meant that the average price received for gold in the June quarter was US$378/oz with 15,000 ozs delivered to US$ calls at US$359/oz .

This was fine a year ago when the price of gold was US$362/oz, but not so hot now when it is US$48/oz higher. Hedge commitments outstanding amount to 330,000 ozs which is more than two years of production, so hopefully the board will find a way to reduce these commitments and increase exposure to the gold price as it would certainly help the company’s rating. In the meantime Kingsgate is having a lot of success with several new discoveries in the June quarter. When Steve Reid took over as CEO he defined its exploration programme into three parts. The first of these comprised reserves which would provide an immediate contribution to production and profitability; the second would replace mined ore reserves; and the third would provide growth in the longer term. The current mineral resource is 33 million tonnes grading an average of 1.7 g/t gold to contain 1.8 million ounces and the mineable reserves are 17.4 million tonnes at 1.9 g/t containing 1.08 million ounces.

Importantly the recent discovery of P prospect , which is a zone of extremely high grade gold mineralization along the trend of the H orebody to the south, has boosted hopes that the mineralisation at Chatree can contain bonanza grades over economic dimensions. This is borne out at the Q prospect where mineralisation is of a different style to that currently being mined with intersections of 10 metres at 18 g/t and 7 metres at 16.9 g/t. It was discovered by analysing high resolution IP/resistivity data over the mine area which resulted in the delineation of the main structural controls on mineralisation. Covered extensions to existing structures have been revealed, as have new targets. This prospect is only 3 kms north of the mine and 500 metres north of A prospect where mineralisation has now been traced for 1,200 metres along strike and 200 metres down dip.

The ongoing exploration programme at Chatree now has the benefit also of two large scale airborne surveys . The data is being analysed and should allow much better definition of regional scale alteration patterns and their relationship to mineralisation. A comparatively small part of the overall property has been explored to date, but it is clear that Kingsgate has discovered a new gold district and this is confirmed by Oxiana’s interest in the region. Add to that the fact that the company has plenty of cash flow to fund exploration as well as pay bi-annual dividends and it is easy to see why UK investors will be interested if Steve Reid presents at a Minesite Forum early in 2005.

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http://biz.yahoo.com/rc/040824/minerals_highriver_1.html

Reuters

High River ups stake in Russian gold producer

Tuesday August 24, 5:13 pm ET

VANCOUVER, British Columbia, Aug 24 (Reuters) - Canada's High River Gold Mines Ltd. (Toronto:HRG.TO - News) has reached an agreement to raise its stake in Russian gold producer OJSC Buryatzoloto by 12 percent to 63.1 percent in a deal worth about C$15.8 million ($12 million) at Tuesday's market prices.

High River will increase its interest in Buryatzoloto by buying a million shares from the European Bank for Reconstruction and Development. It will pay for the stock by issuing 11.7 million shares from its treasury.

High River's stock closed at C$1.35 on the Toronto Stock Exchange (News - Websites) on Tuesday, after losing 2 Canadian cents.

Buryatzoloto owns and operates two small gold mines in Siberia, Zun-Holba and Irokinda. It produced 153,754 ounces of gold in 2003 at a total cash cost of $194 an ounce.

($1=$1.31 Canadian)

Reuters scheint zu glauben, oder will uns glauben machen, dass der doppelte Flugzeug Absturz in Russland die Ursache fuer den heutigen Rebound der Gold und Silberpreise ist.

Gruss

ThaiGuru

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http://biz.yahoo.com/rf/040825/markets_precious_comex_2.html

Reuters

COMEX gold rebounds on mysterious Russian air crashes
Wednesday August 25, 2:44 pm ET

NEW YORK, Aug 25 (Reuters) - COMEX gold recovered from a two-day drop on Wednesday, ending higher after worries that extremists were behind a pair of Russian plane crashes on Tuesday rekindled interest in safe-haven investments.

December gold (GCZ4) settled up $5 at $410.00 an ounce, trading from $405.00 to $410.40. Estimated volume was a moderate 52,000 contracts.

Russia's top investigator said terrorism, human error or mechanical mishap could explain why the two aircraft crashed minutes apart, killing all 89 people on board the planes, after taking off from the same airport.

A spokesman for the main rebel group in Chechnya, where Russia has been battling separatists for almost a decade, denied responsibility.

"You look at the plane crashes in Russia and the Republican convention, the U.S. dollar -- there's lots of stories out there that are certainly not negative, from the gold price perspective," said Bernard Hunter, a director at precious metals dealer ScotiaMocatta in Toronto.

Profit-taking pushed the December contract to $404.60 on Tuesday, down $12 from Friday's four-month high at $416.80.

But that was after gold rose $22 in a week on concerns about the inflationary effect of runaway oil prices and about security before the Republican Party gathers next week in New York City to renominate President George W. Bush for reelection in November.

"As we get toward the end of the week, I think some folks might be a bit nervous coming into convention week," said James Pogoda, precious metals vice president at Mitsubishi International Corp. "Being a fellow New Yorker, I echo those concerns."

But the dollar has faded as a factor this week, trading quietly above $1.21 per euro after a surge on Tuesday.

"Let me tell you what I saw," said Graham Leighton, a bullion vice president at Societe Generale, "very good fund buying and dealer short-covering. Most people believe there's a fairly decent base in the euro between the $1.205 and $1.21 level and therefore the similar kind of support level in gold."

Dealers said gold briefly lost ground when the dollar wavered after the Commerce Department reported that July durable goods orders rose 1.7 percent, more than the 1.0 percent expected by economists. When transportation was factored out orders were up only 0.1 percent.

Spot gold (XAU=) rose to $407.25/8.05 from Tuesday's last price at $402.80/3.55. The afternoon fix in London was $406.00.

September silver (SIU4) ended up 3.60 cents at $6.613 an ounce, trading from $6.55 to $6.67. Spot silver (XAG=) fetched $6.59/62, up from $6.54/57 late yesterday and today's fix at $6.57.

NYMEX October platinum (PLV4) rose $11.70 to $856.90 an ounce. Spot platinum (XPT=) closed at $847.00/852.00.

September palladium (PAU4) slipped 90 cents to $215.50 an ounce. Spot palladium (XPD=) was at $210.50/216.50.

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http://groups.yahoo.com/group/gata/message/2344

From: GATAComm@a...
Date: Wed Aug 25, 2004 3:42 pm
Subject: Globe and Mail comments on Sprott report on gold price suppression

11:38a ET Wednesday, August 25, 2004

Dear Friend of GATA and Gold:

The Globe and Mail in Toronto has taken long note
of the Sprott Asset Management study of
manipulation of the gold price -- a column by
business writer Mathew Ingram, which is appended.

It is valuable for calling attention to the report,
but it misrepresents Federal Reserve Chairman
Alan Greenspan's comment to Congress about
central bank gold sales. Greenspan did not say
that his comment was taken out of context;
he said that OTHER central banks, not his
own, were ready to lend gold in increasing
quantities should the price rise. When he was
asked by a U.S. senator, at GATA's request,
exactly how he knew of the readiness of other
central banks to lend gold to keep the price
down, Greenspan replied that he knew by
observation.

That is, Greenspan's comments, spoken and
written, were actually CONFIRMATION of
central bank collusion against the gold price.
Greenspan can see this collusion and even
acknowledge it in public, even if it still
confuses the Globe and Mail.

But the Globe and Mail isn't alone in such
obtuseness. After all, the central banks put
out press releases and hold press conferences
to discuss their collective efforts in regard to
gold, and still when GATA notes the
collectiveness of this public action, the
mainstream financial press ridicules what it
calls conspiracy theorists.

That central banks are acting collectively in
regard to gold is simply public record. The
only question is how far that collective action
goes. Maybe someday the Globe and Mail will
pick up the phone and call a central bank
to ask about it. That would be called
journalism.

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

* * *

In Search of a Golden Fleece

By Mathew Ingram
Globe and Mail, Toronto
Tuesday, August 24, 2004

http://www.theglobeandmail.com…RTGAM.20040824.wmathlater
front0824/BNStory/Front/?query=Sprott

There are plenty of conspiracy theories out there,
from the Kennedy fetishists with their homemade
copies of the Zapruder film to the Area 51 geeks
with their tales of alien technology kept under
wraps by NASA. In the financial arena, the most
popular by far is the idea that central banks, the
International Monetary Fund, bullion banks,
and even the Federal Reserve Board are in
cahoots to suppress the price of gold.

But is this just a wacky theory promoted by gold
bugs and Internet kooks with too much time on
their hands, or is there more to it than that?

Sprott Securities market strategist John Embry
believes the latter -- that despite the
loony-sounding ideas of some conspiracy
advocates, there is a core of truth to their claims
that gold is being "managed" by central banks
and other financial institutions. He laid out those
arguments in a recent 66-page research report.

In effect, Mr. Embry says that while he doesn't
like the term "conspiracy," he believes there is
some evidence that various central banks,
including the U.S. Federal Reserve, have acted
in concert with the International Monetary Fund
and others -- even the U.S. government itself
-- to keep the price of gold depressed. This,
Mr. Embry says, has taken advantage of
"unsuspecting investors labouring under the
illusion that gold is indeed a free market."

This is not the first time Mr. Embry has sided
with those who believe the bullion market is
being manipulated by powerful forces. Two
years ago he wrote a similar report in his
capacity as a fund manager at Royal Bank of
Canada. The bank seemed to take a dim view
of Mr. Embry's thoughts on the subject,
however, since the head of Royal Bank's
investment management arm made it known
that Mr. Embry's report was written for
internal use and thus "in no way reflects the
views of Royal Bank."

As he did in that earlier report, Mr. Embry
relies to a large degree on the "evidence" (as
he puts it) collected by a U.S. group called
the Gold Anti-Trust Action Committee.
Although GATA is dismissed by many as a
group of "grassy-knoll"-style conspiracy
theorists, Mr. Embry describes their work
as "excellent in scope, yet chronically
underappreciated." At another point, the
Sprott strategist admits he is content to
"side with the alleged lunatic fringe on this
contentious topic" because "their assertions
appear to be essentially correct."

In essence, GATA's gold price-fixing theory
goes like this: Central banks, including the Fed,
have colluded with various other institutions to
keep the gold price low. They have done so in
a number of ways: Central banks have announced
large sales of gold, which has put downward
pressure on the price, but in many cases they
have never actually sold any gold. Others have
allegedly engaged in swaps and other trades
aimed at profiting from a falling gold price.

Why would central banks and others, such as
the U.S. Exchange Stabilization Fund (an arm
of the U.S. Treasury) do this?

According to Mr. Embry and GATA, there are
a number of motivations involved. The United
States, for example, is said to be interested in
rigging the price of gold in order to help the U.S.
dollar on the assumption that if gold were to rise
too quickly, many foreign investors holding
dollar-denominated assets might sell in favour
of gold. Central banks are said to be concerned
that their involvement in the short-selling of gold
could come back to haunt them.

This latter part of the theory stems from the gold
"carry trade," a strategy that involves borrowing
gold from central banks at a low interest rate and
then selling or loaning the gold at a higher rate.
Many of those loans, GATA says, have been used
as collateral for short sales -- short sales that the
group says far outweigh the amount of gold
available on the market. If the price of gold were
to rise sharply, the theory goes, those loans would
be "called in" and large banks and other
institutions (or even governments) would be hurt
by the resulting chaos.

One of the problems with any conspiracy theory is
proving that the events in question couldn't have
happened for some other reason -- by accident,
for example. Mr. Embry himself quotes Goethe:
"Why blame conspiracy when human stupidity
explains so much?" He also says the kinds of
manipulation described in the report could have
"at least initially" been the result of powerful
groups acting in their own self-interest. But the
weight of evidence, Mr. Embry says, still shows
that the gold price is being "actively managed."

Unfortunately for GATA's case, however, which
they attempted to bring to court in 2001 by filing
a lawsuit against the U.S. Treasury, Fed Chairman
Alan Greenspan and several banks, a lot of the
evidence they use is questionable. For example,
GATA likes to use a quote from Mr. Greenspan's
testimony to Congress in 1998 in which he referred
to central bank gold being available for sale. But
the Fed chairman later wrote a letter saying the
comment was taken out of context, and that the
Fed has no role in management of the gold price.

Another key piece of GATA evidence is the 1998
bailout of hedge fund Long Term Capital
Management, which it says occurred because the
fund had a short position in gold of 400 tonnes,
the unwinding of which would allegedly have hit
too many banks and other institutions. Principals
of LTCM, however, have said that they had no
short position in gold, even a derivative one. But
of course they and Mr. Greenspan are both in on
the manipulation, so naturally their responses
must be suspect.

There's no question that the workings of the
international gold market are murky, and that
governments and central banks engage in all
kinds of financial machinations that are poorly
understood and in many cases poorly disclosed.
It's quite a jump from that to a full-blown
conspiracy theory, however, and Mr. Embry's
latest report does little to help bridge that gap.

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RECOMMENDED INTERNET SITES
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NEWS AND ANALYSIS

Free sites:

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http://www.goldseek.com/

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http://www.financialsense.com

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http://www.goldismoney.info/index.html

http://www.howestreet.com

http://www.depression2.tv

http://www.moneyfiles.org/

http://www.howestreet.com

http://www.minersmanual.com/minernews.html

http://www.a1-guide-to-gold-in…s.com/euro-vs-dollar.html

http://www.goldcolony.com

http://www.miningstocks.com

http://www.mineralstox.com/

http://www.freemarketnews.com/

http://www.321gold.com/

http://www.silverseek.com/

http://www.investmentrarities.com/

http://www.kuik.com/KH/KH.html
(Korelin Business Report -- audio)

http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)

Subscription site:

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http://www.hsletter.com

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

Ted Butler silver commentary archive:

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

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August 23, 2004

Time to Act

By Theodore Butler

(The following essay was written by silver analyst Theodore Butler. Investment Rarities does not necessarily endorse these views, which may or may not prove to be correct.)

Like a fast-moving hurricane, the market structure landscape appears to have been altered by the dealers and funds over the past few days. In fact, I’m writing this article a bit early in consideration of that altered landscape. While there was nothing extraordinarily negative in the just-released COTs, the action since the Tuesday cut-off, particularly on Friday the 20th, suggests an orgy of tech fund buying and dealer selling in gold. It is this tech fund buying that has propelled the price higher, same as ever. No other influences, the dollar, oil, interest rates, nor the stock market came close to being the principle price driver. It was solely the funds and dealers.

For the past few weeks I have been anticipating a gold rally because the tech funds had not yet come on to the long side with aggression, so the rally we just had has not been surprising. But this tech fund buying comes with a cost; at some point these same tech funds will be selling, causing prices to decline. That’s the problem. It’s also at the heart of the manipulation of our markets, as it is clear that paper trading is setting prices. This is against commodity law and is just plain wrong. It is not right that big money (funds and speculating banks) set the price of commodities. Unfortunately, it is also reality, which is why I focus on it.

In silver, we have now moved to the negative side, from neutral, on COT analysis. Ditto with gold. Does this mean we sell-off soon? Maybe. I’m not a prophet and I don’t think the vast majority of investors should try to trade the market short term. The key to long-term investment success is buying and holding undervalued assets. I try to use the COTs to identify extremely low risk points in the market, when the risk is a few dimes to the downside. While there are many, many dollars of upside to silver, the COTs suggest a little more than a few dimes to the downside currently.

There is no way of knowing when the tech funds are done buying and the dealers are done selling. We could go much higher short term if the funds buy more and the dealers let them, before selling off. It’s always possible that the dealers could finally get overrun to the upside, for the first time. If any market could ever nail the dealers, it would be silver, with its spectacular supply/demand fundamentals. The profit potential is always great in silver at anywhere near current prices. But there are times when the risk is extremely small as well, as defined by the COTs.

What does this mean to the average silver investor? Basically nothing, save one thing. No one should even contemplate disturbing long-term core silver positions. There is too much risk and cost in messing with long-term holdings. Besides, I could be dead wrong (in fact, I hope I am) in my assessment of the COTs. There have been times, such as in the first quarter, when the COTs stayed negative through a two-dollar rally. I am much more certain of the long-term explosive move up, than the short term move down. The only concession I would make is to save some dry powder to take advantage of a possible sell-off and low risk buy point.

But there is an unusual opportunity that has been created for the silver miners, specifically Pan American Silver, Hecla, Coeur d’ Alene and Apex Silver, to be more proactive in regards to the silver market. I understand that no one likes to be told to do anything, especially by an outsider. I’m sure that’s how the CEOs of these companies look at suggestions that they buy silver with excess shareholder cash. However, the recent rise in the price of silver (and gold) due to tech fund buying sets up an interesting opportunity for these miners (and other miners).

If we surge higher in the silver price from here, and the dealers are overrun by the realities of supply and demand, I will be the first to acknowledge that the time has come and gone for the miners to buy silver and this suggestion is no longer necessary. Those miners, like Silver Standard, who did buy silver, will reap the rewards for their foresight with profits and goodwill, but surging prices will relieve the ones who didn’t previously buy real silver of responsibility of fighting for a fair price for their shareholders’ resource.

I want to be very clear about something here. My intent is not to fight with the miners. My intent is to help them. I have offered a constructive solution to what is an obvious problem; the price of their product is manipulated and that has hurt them. I have offered this solution publicly with no expectations of private gain. I admit that perhaps my tone could have been more solicitous in the past. I apologize if I offended or insulted any CEO, particularly Ross Beatty, now chairman of Pan American.

My proposal is easy to put into place. I have seen complaints that it will disrupt the miners’ business operations and even comments that I’m telling the miners to cease production. That is not close to being correct. All the miners have to do, in the event of another sharp sell-off in the price of silver, is to deploy a small percentage of their cash, some 10 to 20%, into real silver. If they are unsure of how and when to do it, they can call me for advice, free of charge. Let’s face it; these miners are almost universal in their declaration that they won’t hedge the price of silver to the upside. They know that shareholders want this blue sky potential. Buying silver with a small percentage of free cash is philosophically aligned with a no hedging pledge.

As I have written previously, the four companies mentioned have more than $800 million in shareholder cash. These companies have no plans of spending or using all this cash anytime soon. It is a cushion. It is, admittedly, the first cash cushion in their history, and I can understand their reluctance to part with any of it. But I am not suggesting they part with any of their shareholders’ cash cushion. The 10 to 20% that I am suggesting they deploy into silver on a sell-off will not affect their operations in the least. The money will not disappear; it will just be invested in real silver, and not in short-term interest bearing securities at 1 or 2%.

Without exception, every shareholder in a silver company wants exposure to the price of silver. That’s why they have invested in these companies in the first place. I feel I can speak for the vast majority of silver company shareholders and state that a company holding 10 to 20% of its cash in silver, bought at a reasonable price, instead of money market securities, will be well-received by them. It will probably even enhance share performance, as seems to have been the case with Silver Standard.

If the COTs play out in the usual manner where the technical funds are tricked into dumping the paper silver they just bought, and the price of silver swoons, that will prove once again that paper speculators are setting the price of silver.

This will be a time to put everything else aside, for the sake of shareholders and the silver market. CEOs are intelligent and will gravitate to an idea designed to benefit their shareholders. I hope the silver mining CEOs will seize the opportunity and buy some real silver. It will be a wonderful chance to do the right thing. That way, shareholders and silver investors will turn out winners.

[Blockierte Grafik: http://www.goldseek.com/news/LemetropoleCafe/lmpc.jpg]

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August 25 - Gold $408.10 up $5.20 – Silver $6.61 up 5 cents

Gold Surges Right Back

I've believed ever since that living on the edge, living in and through your fear, is the summit of life, and that people who refuse to take that dare condemn themselves to a life of living death....John H, Johnson (American Businessman, founder of Johnson Publishing)

Gold firmed right after yesterday’s Comex close and continued that trend into today’s Comex session. The big buyer was the Mann Fund going through Morgan Stanley. The big seller? Goldman Sachs, capping the bullion price for The Gold Cartel. The most fun part of the day was the close as gold popped $1.30 on the bell to finish on its highs for the session. This is rather unusual action for gold. Normally, the price managers take a whack at it late. Thus, we have another anomaly of late when it comes to the gold market. And, one more too. For gold to rally $5 after yesterday’s harsh drubbing by cabal forces is also extremely unusual. In days gone by we might have seen only a $1.50 cartel allowed courtesy rally.

What is so constructive is the sharp gold price rebound away from $400 confirms the cash market information brought to your attention the past 10 days. There are big buyers out there who want to accumulate gold anywhere near $400. Their buying buffeted the cabal price setback and thwarted the cabal’s efforts to send gold back down into the weeds. My guess is The Gold Cartel has been surprised by the amount of physical buying out there and it is having to dig deep into its coffers to keep gold from really flying.

The gold open interest fell 1973 contracts to 259,849, probably due to new shorting as John Brimelow correctly surmised yesterday afternoon. Wouldn’t it be something if it is these new shorts who are forced to cover and become pivotal in taking gold to multi-month highs.

Gold has left two short-term gaps above the market and one below it:

December gold
http://futures.tradingcharts.com/chart/GD/84

Found out later in the day UBS was a huge buyer in the cash market. Don’t hear that name bandied about very much when it comes to physical market gold buying. Perhaps this ties in with the Mann Fund buying and could also represent European interests.

The dollar fell .08 to 89.47, while the euro rose only .11 to 120.82. Gold in euro terms rose right above 339 and within 1 of taking out its Friday high right above 340. The Mann fund is known to do some buying for very wealthy Europeans. Perhaps the latest gold bull move in all currencies is beginning to create investor excitement in foreign countries. This would be welcomed good news indeed.

Silver was very firm also, however, it faded late once again. The open interest rose 387 contracts to 102,711.

It will be interesting to see how the world financial market press and the gold industry deals with the magnificent Sprott gold report. In addition to what Sprott sent out, GATA issued a press release this morning to business editors in the US, Canada and South Africa. The report is a lengthy mouthful and will take time to digest. However, thus far only the Globe and Mail (in Appendix and sent out by Chris Powell earlier) has given the report any air or print time and the best the pitiful writer could do was bring this serious subject down to its most trite level. Here you have a very diligent report, one which took a long time to prepare and one which could shake up an industry, and the author stoops to trivializing it by concentrating on the word "conspiracy" and coming up with his own inane comments. He didn’t bother to go to other sources for opinion either. Talk about useless.

The following retorts to the author say it all:

Dear Mr. Ingram,
Gap bridging is a difficult process for even the most contentious analyst or journalist, when those in possession of the relevant facts and data enforce a lead shield of secrecy. Why is there no obtainable official evidence of the actual scope of gold related derivatives, swaps or sales by U.S. central banks or independent accounting of U.S Treasury gold reserves?

Mr. Greenspan has acknowledged throughout his entire career the historic importance of both transparency in the accounting of central banking activities and the relationship of gold as a principal barometer to the measure of inflation. But since the most demonstrated skill of the Fed chairman, and his associates, is to persuade the world that all's well with the relative worth of the dollar, how is it NOT in the Fed's political interests to keep the proverbial wool pulled firmly across the eyes of the convinced/concerned/contrarian, or in short, us all?

The relegation of GATA, et al, vehement language notwithstanding, to the likes of the "fringe" conspiracy camp seems an all too easy dodge of a terribly important issue that all too few seem to have any inkling of, or concern about. The many excesses of our current economy are evident and have ample historic comparables that should be giving us all pause. GATA, after close examination of the FACTS, has made a very compelling case towards the exposure of a concerted effort by multiple, function related entities to, as defined by Webster, defraud not only investors, but anyone that has use for currency. Whereas the quote from Goethe may apply explicitly, recent history is rife with officially sponsored, ill-advised conspiratorial manipulations, always compounding the initial stupidity and leaving the unsuspecting disadvantaged or destroyed.

So, I would like to encourage you, Mr. Ingram, to dig a bit deeper into this "gap", and perhaps be a bit less cavalier in assigning GATA a seat at the lunatic table. That, at least, until you have something less glib and more substantial with which to ridicule or refute.
Regards,
Ralph Davis

Dear Mr. Ingram,
I read your article "In search of a golden fleece". I usually like what you write and, I guess as a journalist, you are free to write and express your opinions and views. I have read many of your articles and I really like your style and views, usually. This is one article I think you could have done much better on. It is evident that you come out against GATA and Embry's views. However, why not give evidence to the contrary? I have read others who also have come out against the prospects of manipulation in the gold market. These include Tim Wood, Jessica Cross, Peter Grandich, (and now you) and others. However, not once EVER has any of these individuals furnished evidence that contradicted this theory.

Let me ask you this, why assume that Alan Greenspan and Ben Bernanke (who promised to drop $$$ out of helicopters if the economy required it), the Central Banks, and the Bullion Banks would NOT want to manipulate or "manage" the market?

Why assume the Gold market is a free market? It doesn't trade as a free market. The Fed and the Bullion banks have tremendous dominance over this small market.

Can you explain why gold stuggles to gain in an environment where the fundamentals are screaming for a higher price. Yet, on days like we had recently with the jobs numbers and the trade deficit gold is capped at a $6 increase or less (this is almost always the case). Yet on days when there is moderate good news, gold will get smashed 10-16 dollars.

By the way, you seem to assume the Fed would not manipulate the markets. Why don't you investigate the way the USA jobs numbers are counted. By using the Birth/Death model they are able to artificially create jobs where there are none. This, at lest makes their bleak non-farm payroll reports be able to report positive job numbers instead of negative.

I recently heard and interview by Peter Grandich who is indeed very positive on gold but does not believe in the gold market manipulation. However, he furnished not one ounce of evidence to the contrary. However, when asked about the silver market, he quickly said that he believes this even smaller market IS manipulated. His only evidence was "Because it trades like it is." My response to him would be, "So does the gold market."

Mr. Ingram, I would implore you the next time you write regarding this subject, please do a little more research. I may be wrong, but I doubt you have ever researched this whole area yourself. Certainly not to the extent that Mr. Embry recently researched it.

Hey, heres an idea, Mr. Ingram, why doesn't the Federal Reserve allow the gold that is in their vaults to be audited by an Independent Auditor. Then we can find out how much gold is really in the vaults. If GFMS numbers and the Fed's numbers are correct--no problem and no sweat off anyone's nose. However, if Mr Embry is correct and the others he quotes in his recent research, Not Free, not Fair", then manipulation or management has been their game. Somehow, I get the feeling that the Fed will never permit this............It would require them, at least in part, to come clean.
Wendell Leytham

Somebody ought to tell this Ingram lightweight that Oleg V. Mozhayskov, Deputy Chairman of Central Bank of Russian Federation (Bank of Russia), said GATA was correct, that major banks are suppressing the price of gold, on June 4 in Moscow in front of attendees at an LBMA convention.

In days gone by the Globe and Mail article would have rankled me more. Now I just consider it both juvenile and inept. Let’s see what else surfaces in the days ahead, if anything. More than likely the controlled free press will do all they can to stifle the report and the compelling material in it. Love to be wrong on that score.

Where I believe the report is going to hit a home run is with the big hedge funds, the wealthiest individuals in the world and foreign central banks. After reading it, they will then understand what the implications are. That will have them buying gold hand over fist. It is only a matter of time. The Sprott gold report could change the entire price dynamics of the gold market and has to have The Gold Cartel in a sweat.

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The John Brimelow Report

JB: Could this be a Bear trap?

Wednesday, August 25, 2004

Indian ex-duty premiums: AM $6.83, PM $7.11, with world gold at $405 and $404.70. Very high: India must be a strong importer at these prices.

TOCOM has turned a buyer too. On aggregate volume equal to 23,037 Comex lots (up 21%), open interest rose the equivalent of 857 Comex. Mitsubishi, which carries "Members proprietary position" for the current day (TOCOM’s official data is lagged a day) indicated a steep 15 tonne increase in the general public long. Gold rose $1.70 over the NY close, although the active contract was down 11 yen from Tuesday’s close. There may well be follow- through: the yen, which did not move much during the Japanese business day, has subsequently weakened. This frequently improves futures appetite on TOCOM. (NY yesterday traded 57,583 contracts; open interest fell only 1,973 lots to 259,849.)

Several commentaries assume that much of yesterday’s $7.80 loss on Comex was long liquidation, in part via stop losses. Unquestionably there must have been some: Refco Research for instance was knocked out of the long they bought on the breakout on Friday. But the small fall in open interest makes clear that short selling was a big factor too.

It was notable that much of the price damage was done between Noon and 1PM, during which time estimated volume on the day, jumped 43%. In the final half hour estimated volume rose another 40%: the price did nothing. (Actual Comex volume was 18% below the estimate, an unusually wide gap, but presumably the proportions were similar.)

In all probability, emboldened by the massive resistance found above $410 on Friday, and some improvement in the news flow, commercially-motivated short sellers became active. They have succeeded in inserting themselves into the jaws of the physical market. This opens the possibility of a V type recovery. Exactly this happened in late July.

The Bears probably know little about the physical market, which is rather an obscure topic, but they unquestionably will have been emboldened by the heroic selling on Friday. They may well be counting on it as a backstop. Just how heroic it was is underlined by information to hand today, that since 1988 only one day has seen a bigger increase – the Barrick hedge announcement in January ’96. A month later gold was 5% higher, achieving a multi –year peak (in both directions, unfortunately).

JB