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

Later on in gold rallies, the bullion banks in the cabal KNOW what is coming and when their counter-attack against gold is going to kick in. Take last night for example. Gold immediately opened up $1 lower in Access trading even though the dollar was slightly lower. The dollar then rose and gold dropped another dollar. By this morning gold was $3 to $4 lower and it was downhill from there. Not even the faintest hint of a rally all session long. This confirmed the suspicious trading in the senior gold shares on Thursday and Friday. Time and time again they WEAKEN in noticeable fashion (during gold strength) a day or two before The Gold Cartel mauls the bullion price. This is nothing less than a criminal operation. You have a Mafia stealing your money in plain view of the regulators who do zip to go after them. Let’s hear it for American democracy again, which has transformed itself into an Orwellian democracy – one for the elitists and major bullion banks, not one for you and me and the unknowing American public.

Let me bring Rhody up here to explain (in different fashion) what The Gold Cartel is doing. He is right on:

'Morning guys:
This is an interesting synopsis of the present and past gold situation.

If you look at the RSI graphs, you can see that gold is already overbought, but at a lower price level than the last cycle. The central bank/CARTEL capping is working. They have not turned off the bull, but the potential exists. We are now in a race. Either they turn back gold before the US dollar collapses or not. I don't think they will, but FOREX 80 is very strong support.

I did a little figuring with the support line on the gold price (the heavy blue line below). It has been rock steady support. Since it is linear, it is rising at the rate of $42 per year, and this is dead simple to calculate, even with my miniscule intellect. This rise is linear, and the inflation shrink inflicted on your wealth is exponential. This is not good. Bear with me on this. If you bought gold at the beginning of the graph around Aug 2002 at $300 per ounce (because you are astute and always buy at the 200 day moving average) you would have made $42 by Aug 2003, a profit of 14%. One year later, you still make $42 but its on gold that is now priced at $342 so the gain in holding gold over paper is

12%. One year later, the base price has risen to $384 and holding gold has earned you 11%. One more year has passed and gold should be $426 this August and your rate of return is now about 10%. Do I detect a trend of diminishing returns?????? At this rate, in three more years, gold will be yielding 7% and that's about the present inflation rate. After that, gold becomes a loser relative to inflation or relative to other vehicles that are rising faster than inflation, like copper.

What I am saying with all this blather is that unless the capping by the central bank/CARTEL ends, and gold turns exponential like inflation, gold will not be carrying out its traditional function as an inflation hedge in just three more years. If you look at this from the point of view of the central banks, if they thought selling gold at $400 was cheap in 2004 relative to the price of oil and most other commodities, how are they going to feel about flogging gold at $550 in three years with oil at $100 and copper at $2.50?

Right now, with oil at $55, gold should be a minimum of $825. With oil at $100, gold should be a minimum of $1500 per ounce, yet that's where I expect oil will be unless we have a deflationary collapse. So is gold indicating a deflationary collapse, or is gold the victim of the most blatant market manipulation the world has ever seen?
Regards, Rhody.

Here's the Economic Reality Link:

http://er.unixgeeks.org/index.cgi/2005/03/12#ent1-cylinders

***

Remember, a Gold Cartel rule is the greater the reasons for the price of gold to fly, the greater the intensity of the price-capping. With the CRB going berserk, The Gold Cartel has prevented gold from "joining the party" to keep the world’s major inflation barometer in check – to calm down talk of the real US inflation.

On that note, I scoured the internet for a valid reason for the surge in the dollar today. Aha, in addition to calming markets down, according to a fellow Café member The Working Group on Financial markets, in conjunction with The Gold Cartel, is probably thinking ahead:

Bill,
Of all the annoying cabal rituals you so deftly document today's " pre-emptive gold bash ahead of the scary economic numbers" is one ritual I can't wait to end. With tomorrow's Treasury Department release of international capital flows and Wednesday's fourth-quarter current-account gap numbers it is imperative that when gold rallies it be from much lower levels. I expect both numbers to be VERY dollar bearish. The ferocity of the gold attack usually seems correlated to the bearishness of the data release. Judging by today I'd say these will be some ugly numbers.
James

The gold open interest rose a whopping 14,016 contracts to 317,078 which represents funds pouring in on the buy side and The Gold Cartel stuffing the advance. On that kind of massive buying, gold should have risen $10 to $15 an ounce and rallied like other commodities did on Friday. From Friday’s MIDAS:

"…The Gold Cartel went on another one of their patented price-capping routines for the rest of the day. As is almost AWAYS the case, gold made its highs early and then was held in lock down. Because of all the fund buying in gold, the bums had their hands full containing the surge. Volume was VERY heavy. John Brimelow told me late this afternoon the estimated volume was a huge 80,000 contracts, 18,000 of it coming in the last half-hour alone. 50,000 of the volume came after gold shot up $4 to $5. That will give you some idea of the firepower the corrupt ones threw at gold to keep its advance modest. To aid them their mission, these creeps then went after the gold shares and silver to calm things down. Have you ever seen such a consistent market farce in all your life?"

Contrast the action of rigged gold to free market soybeans. On Friday, while gold was capped, Beans soared 22 cents. Today, after bearish rain news from South America, March beans fell a piddly 2 ¾ cents, despite the rising dollar. Compare that action to the cabal controlled gold market on the Comex. Take oil for that matter. It rallied from nearly a buck in the tank to close 52 cents higher at $54.95 per barrel.

Silver continues to flail around. Its open interest gained 2,058 contracts to 104,232.

The euro gold price was last seen at 329.67.

For years MIDAS has said the key to the gold price will be for The Gold Cartel to be exposed and destroyed. Until then gold will never do what it should. The proof of that is now in the pudding – the pudding between how far gold has fallen behind the CRB.

Ok, enough of the lament and grumbling. The big news is GATA is on some roll. Following the impressive GCC gold report emanating from Dubai which states GATA is correct, India’s The Financial Express in New Delhi and Mumbai covered GATA’s CRB/gold press release.

At http://www.thebulliondesk.com:

Central bank intervention keeps gold prices lower: GATA

http://www.financialexpress.co…tory.php?content_id=85174

-END-

Then we have coverage on GATA supporter Hugo Salinas Price’s effort to remonetize silver in Mexico, followed by Peter Brimelow’s article in Dow Jones’s Market Watch.

These were the top two features on Kitco’s Latest Gold News for much of the morning:

Mexico Mulls Silver Lining Against Currency Crash - Reuters, Mar 14, 2005 07:23

Will gold sector miss the party? - MarketWatch, Mar 14, 2005 07:36

Peter's article was also one of the features all day at http://www.thebulliondesk.com.

Peter Brimelow (Market Watch) brought Frank Veneroso’s admonishment of GFMS and the World Gold Council to the attention of the mainstream investment world. We hope to be able to bring Frank’s full report to your attention ASAP. Both the World Gold Council and GFMS have some serious answering to do.

I cannot stress how important it is that GATA, and what we have uncovered, receive as much exposure as possible. WHY:

*When the investment world realizes GFMS and the WGC have been perpetuating a fraud concerning world gold demand is concerned, the shrewd ones in that world will want to know what is going on. They will find out these mainstream gold institutions deliberately understated demand to hide the amount of gold loans/swaps leaving the vaults of various central banks (accommodated by the cabal’s bullion banks like Morgan and Goldman) in order to manipulate/suppress the bullion price.

That is step one. Step two is they will then eventually realize (after reviewing the work of the GATA camp) that more than half the central bank gold is now gone – used up in The Gold Cartel’s scheme to keep the price down. Once the investment world realizes this, they will know the scheme CANNOT be maintained due to the true demand for gold around the world and inability of The Gold Cartel to hold down the price due to a dwindling supply.

As this becomes more and more understood, the price of gold will not just rise, it will go BERSERK, as investors around the world will all want in – especially with commodity prices on a tear and the dollar a "dead man walking."

The John Brimelow Report

C Bank seller? India buyer. GLD strange

Monday, March 14, 2005

Indian ex-duty premiums: AM $6.90, PM $7.01, with world gold at $443.80 and $442.80. Very ample for legal imports. These premiums probably understate the strength of the Indian bid to the world gold market during the course of their day. The Reserve Bank intervened aggressively towards the close, bringing the rupee well off its intra-day peak - notwithstanding which it finished at an import-facilitating 5-week high. Anyone wishing to force gold down is going to have to contend with strong buying from the world’s largest importer.

Despite a weakening yen (which normally bolsters appetite for yen gold futures) TOCOM, on finding world gold $4 or so higher than its Friday close, sold. Volume jumped 124% to equal 27,182 Comex lots, with the active contract closing at a 3 month high, up 12 yen. But open interest fell the equivalent of 3,039 Comex lots (9.45 tonnes) to equal only 95,904 Comex. Mitsubishi’s data implies the Public cut 13.4 tonnes from its long. World gold went out $2.10 below the NY close. Japan is no help to gold at present. Shanghai, on the other hand, is showing a slight premium.

NY on Friday traded 102,964 contracts, 29% more than the estimate; open interest rose 14,017 lots – a startling 46.6 tonnes for a gold price rise of $3.40.

Friday’s NY action is best summarized by Mitsui-London:

"The opening of New York markets on Friday appeared weak, and as a result, initiated selling right on the open. However, the Trade Balance numbers were reported worse than expected…Metals markets were caught short, and forced to cover. Very aggressive fund buying on the Comex pushed Gold up to a high of 447.00 bid"

Mitsui-London adds

"fund buying in gold became quite strong - with guesstimates of one fund buying anywhere from 8-15k lots."

On Friday, it will be recalled, gold traded sideways from 11 AM, trading an estimated 50,000 contracts, 63% of the day’s total – so 64,000 lots if actuality paced the estimate. It seems superfluous to observe that for a short seller to sell like this on a Friday afternoon, especially considering the concomitant behavior of the dollar and the CRB index, would have been an act of super natural courage. Such a party would surely have scaled up, as would a commercially motivated long. Those who suspect a Central Bank manager is active in gold can add Friday March 11 to their evidence collection.

There has been a good deal of discussion on this subject lately, which is summarized in the MarketWatch article constituting the second attachment.

As expected, the CFTC data showed a large increase in the spec long. UBS comments:

"In the week to 8 March …Net long positions increased by 1.9 million ounces to 14.3Moz as 1.24 Moz of new longs were added and 630koz of shorts were covered….. We estimate that the net long position now stands at about 16 million ounces…this is still 7-8 million ounces below the all time highs of last year…"

UBS raises the possibility that the presence of the ETFs may detract from the relevance of the previous high, having siphoned off some buying power. On reflection, this argument is unpersuasive. The type of operator with the stomach for the volatility of futures would probably find the lack of leverage of the ETFs boring. Where there may perhaps have been leakage is from large-cap gold equities.

GLD, according to its website, managed to add zero ounces to its holdings on Friday despite trading 2.7 Mm shares, an incredible 6 business days of no change. It would be nice if those concerned offered an explanation.

JB

CARTEL CAPITULATION WATCH

The DOW gained 30 to 10,804, while the DOG rose 9 to 2051. All is well on their planet. The mirage lives.

The dollar only rose .46 to 81.88. The March euro only fell .66 to 133.89.

Economic news:

But, there is no inflation:

09:56 Kuwait's oil minister expects oil $50-$55/barrel for rest of year -- Bloomberg
Minister believes oil may surpass $60/barrel. Firm expects rising demand to support oil prices and expects OPEC to add 1M bpd capacity. April WTI crude closed the overnight session at $54.25.
* * * * *

13:12 Japanese steelmakers to get 10-20% price increases for steel plate and sheet, reports Nikkei
Current prices are likely to be revised in April. Steelmakers have raised prices to automakers by 5-10% over the past 2 years. Latest increases will raise prices to levels seen prior to the nearly 30% reduction that took place after NSANY began cutting costs in 1999.
* * * * *

The CRB took a break for a change, yet lost only 1.37 to 317.24.

Insider selling of US stock picks up steam:

NEW YORK, March 14 (Reuters) - Sales of company stocks by U.S. executives last month reached the third-highest level for February in nine years, sending a bearish signal for stock investors, a survey said.

Insider sales in February surpassed January's, as expected. Insiders were lined up to sell stocks after the end of restrictions tied to the fourth-quarter earnings season, according to the survey by Thomson Financial.

More than 145.6 million shares were sold for a total of $4.8 billion, the third-highest level for February since 1996...

-END-

The latest on the Gold Cartel’s AIG:

AIG's Greenberg May Step Down as CEO, WSJ Reports

March 14 (Bloomberg) -- American International Group Inc.'s Maurice ``Hank'' Greenberg, who has run the world's largest insurer for almost four decades, may step down amid probes of potential earnings manipulation and bid-rigging, the Wall Street Journal reported, citing people familiar with the matter.

AIG's board may replace its 79-year-old chief executive officer with Co-Chief Operating Officer Martin Sullivan, 50, the Journal said earlier today, citing unidentified people. AIG spokesman Chris Winans declined to comment except to say ``the board has taken no action.'' Sullivan didn't return a phone call and Greenberg couldn't be reached for comment.

``With all the regulatory issues it's facing, anyone's tenure would be under threat,'' said Simon Clinch, who oversees about $1.3 billion of U.S. stock investments at Aberdeen Asset Management Plc in London. Aberdeen owns about 300,000 AIG shares.

The change in power would come about a month after New York Attorney General Eliot Spitzer subpoenaed Greenberg amid an industrywide investigation of bid-rigging and insurance used to smooth earnings. Shares are down almost 12 percent since AIG disclosed subpoenas from Spitzer and the U.S. Securities and Exchange Commission on Feb. 14.

An icon of the insurance industry, Greenberg made more than $50 billion in acquisitions to reach 50 million customers in 130 countries. He attained one of the property and casualty industry's highest profit margins, made AIG the largest foreign life insurer in China, and diversified into airplane leasing and consumer loans….

-END-

Your fellow Café member tells it the way it is on this one:

Bill, as you probably already know, the board at AIG has asked Hank Greenburg to resign because of all the investigations. It looks to me as if it's another slap on the wrist for criminal activity by Elliot Spitzer without any prosecution or admission of wrong doing. The collusion between AIG and the other 8 or less manipulators to defraud investors out of tens of billions of dollars over the years will no doubt continue for a while longer, but it is very unsettling to me that the attorney general is covering up this crime (bigger than Enron or Worldcom) and for political reasons refuses to prosecute and is therefore enabling the fraud to continue. Doesn't this make Spitzer a co-conspirator in the same way the driver of the getaway car is just as guilty as the bank robber? While Spitzer is somewhat of a hero to many small investors, his refusal to expose and prosecute the crime makes him equally guilty since the crimes could not continue if not for his help. Can the attorney general be prosecuted? Gene C

Speaking of which – good news for the Gold Cartel and their gold share manipulation program:

STOCKGATE TODAY
An online newspaper reporting the issues of Securities Fraud
SEC’s Donaldson to Senate on Naked Shorting "Shorting Selling is not Illegal" – March 10, 2005
David Patch

For those fighting the uphill battle of abusive naked shorting the March 9th Senate Hearing with Chairman Donaldson was at least amusing to watch.

http://www.investigatethesec.com/DP110305.htm

-END-

More food for thought on oil, the euro, trade and its implications:

Good evening Bill,
We know that the US was quite upset with Iraq some years ago whewn Hussein decided to price their oil in euros and not dollars.

The fact that countries other than the US have to buy dollars in order to pay for their oil helps to set a floor for the dollar - a somewhat wobbly floor recently, but the situation would have been a lot worse if a good portion of the oil from OPEC was priced in euros, not in dollars.

In today's Midas your report:

Rome, March 11, IRNA -- Iran and Italy signed an economic cooperation protocol worth three billion euros here Thursday night, based on which the Italian government is urged to provide Tehran with industrial machinery upon request, in return for Iranian oil. -END-

At first glance this agreement would seem to be one of barter trade: Iran sends oil to Italy - to the tune of 3 billion euros, not peanuts at all - and on request Italy will send industrial machinery to Iran. Not a mention of dollars or even of the pricing of oil in euros.

This could be something very interesting in itself, but just think of the implications if a few more sizable deals like this go through.

Have a good week
daan

Warnings on the fate of the dollar are mounting:

http://www.counterpunch.org/roberts03102005.html

"The dollar's value and status as reserve currency cannot forever stand the trade and budget deficits that are now part and parcel of America's economic policy. Unless there are major changes soon, America's economic future is a third world work force with a banana democracy's worthless currency." Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. He was Associate Editor of the Wall Street Journal editorial page.

-END-

This FT piece received much play yesterday:

http://news.ft.com/cms/s/5b00c…d9-9d6e-00000e2511c8.html

Growing fears credit boom may implode
By Dan Roberts and David Wighton in New York and Peter Thal Larsen in London
Published: March 13 2005 21:42 | Last updated: March 13 2005 21:42

Bankruptcy advisers are hiring extra staff amid fears that an end to the global credit boom could spark a surge in business failures in the US and Europe.

Unusually loose lending conditions have encouraged record borrowing by speculative-grade companies, with leveraged buy-outs and debt refinancing on both sides of the Atlantic generating more than $100bn of deals in the past eight months.

But last week's fall in the price of US Treasury bonds, coinciding with signs that bankers are struggling to complete riskier corporate bond issues, has added to a sense of nervousness in some quarters.

Although corporate default rates remain low, some fear the legacy of recent private equity buy-outs and hedge fund investments in distressed debt will be a swath of over-leveraged companies ill-equipped to survive in less benign conditions...

-END-

Reports of what the Chinese are going to do with their currency have become so boring. Here is another one:

Premier says China may surprise on yuan reform
By Scott Hillis

BEIJING, March 14 (Reuters) - China could spring a surprise on financial markets in deciding when and how it reforms the yuan, Premier Wen Jiabao said on Monday in comments seen as warning speculators trying to guess what the country might do.

"Our goal has been to let market supply and demand determine the exchange rate," Wen told a news briefing at the close of the annual session of parliament.

"We are carrying out such work now, and as for the timing and what measures will be adopted, this could be unexpected."

-END-

The Café and GATA have developed quite the information network around the world. On that note I am passing on what I am hearing from a solid source. None of this can go in the verified camp, so it all must be treated as RUMOR until we receive proper verification:

*Russia is preparing for possible war and its actions on the dollar indicate just that; they are going to back Syria, Iran. China will back Iran.

*Russia has made deals on oil and gas projects and opened its minerals to trading. This should show soon in response to Chinese raw materials buying.

*Russia has also abandoned efforts to tie the ruble's movement closely to the dollar and switched to shadowing both the euro and the US currency. This is the first step to war. Other countries operating de facto dollar pegs will follow suit. With 81 per cent of Russia's oil exports currently sold to Europe, the move means that Russia will eventually denominate its oil in euros.

*Remember Russia is the world's second-largest oil exporter, behind Saudi Arabia.

*Asia is following Russia, or should I say leading, and is about to dump dollars in sizeable chunks; they believe that the U.S. dollar is no longer seen as a stable currency and it appears that Malaysia will be the first major Asian economy to dump the dollar. China has already calculated when they will optimize the dumping of the dollar to provide the greatest strength to a newly un-pegged Yuan. Both events will occur very close together and it will be planned to do the most damage to the US.

As you know Bush had a record budget deficit forecast of $427 billion for this fiscal year. All this has other investors turning to the euro and when Asian central banks turn; the dollar's problem will worsen. Dumping dollars will result in stronger Asian currencies and by un-pegging the Chinese currency from the dollar will most certainly trigger the wholesale dismemberment of America's middle class. These developments, when they happen, will be the financial equivalent of a nuclear first strike. When Asians pull the plug, U.S. rates will skyrocket this will be followed by Russia, Germany and maybe France. The Mexican Peso will have more value than the US dollar."

* Halliburton is all over Alaska and probing mining companies there.

*There will be an eventual cutoff of oil to the U.S once an attack on Bushehr occurs. The situation in the US will be worse than 1973.

* The US is going to war and Syria and Iran will be hit. Field commanders have the authority and a green light to go any time.

*Iran has had nuclear weapons since 1991.

*"I'm told in a specific time frame, 36 months or less, the central banks will be completely diversified in currencies and out of the U.S dollar. Be advised they are buyers of gold. When I learned this I was astounded by it."

*"I believe our troops to north of Iraq are all in danger. They will have to have a draft. There is no question about it as they are short people despite U.S officials/congress comments. I have the stats and I know this for a fact that they can not go longer with out doing a draft. They are well over 100,000 short of personnel which was said directly to me; massive preparation like that of WW2 would have to take effect immediately."

-END-

Just food for thought for you. Take it or leave it. Time will tell on all counts.

Valuable insight:

Bill,
These notes may be of interest to you and your readers.

The recent major breakout in the CRB, violated a long-term cycle.

It has been my belief that the primary tool of the interventionists has been utilizing certain long-term cycles.

It is the utilization of these long-term cycles (natural laws), which has allowed the interventionists to engineer the markets more efficiently (heavy handedly) than they did in the 70's and 80's and to conserve their precious physical resources (gold, silver, oil, etc.).

The CRB's long-term cycle violation indicates to me that some leaks in the proverbial dike are getting bigger.

As more long-term cycle violations occur, the crumbling structure of the dike will accelerate.

Currently, I believe the commodities that scares them the most are primarily the energy products with silver and copper secondary.

Many commodities (i.e., precious metals & energy products) are nearing violation of long-term cycles, not the least of which is the CRB trading within 6% of an all-time high and the energy products trading within 4% of all-time highs.

It is my belief that the pressure overnight and today in gold, silver and other commodities is precisely because of these long-term cycle violations.

One of the recent violations of the long-term cycles has been coffee. The fundamentals of coffee have been bullish, and the recent droughts in the Vietnamese and Brazilian crops, which has reduced production by at least 15% and 10%, respectively, has substantially added to coffee's bullishness. As a result, much higher prices are needed to ration current and future coffee inventories.

However, there is a problem for the interventionists.

The CRB index is equally weighted with several commodities, including coffee. In othe rwords, coffee has the same weighting as crude oil.

http://www.crbtrader.com/crbindex/futures_current.asp

Currently, NY coffee is the greatest percentage mover in commodities having appreciated more than 100% in less than 6 months.

As one would expect in today's heavy handed markets (intervention), coffee, in spite of its price rise, has taken on the characteristics of intervention.

Coffee, like gold, is not allowed to have at least 2 consecutive days of upside volatility. After the initial day, the market is either muted or has a reversal day. In May coffee there have been at least 10 days with upside price movement greater than 3% without follow through. The odds of this happening with bullish fundamentals and technicals aligned with long-term bullish cycles is basically impossible without the force of an outside agency.

Additionally, for the past couple of week, the London coffee market has been hit lower 2% to 3% lower on several occasions just prior to NY's opening. This is another sign of attempts to engineer the price of NY coffee. Normally, the London market will get quiet prior to NY's opening. This is similar to gold being hit prior to NY's opening.

One of these day's a leak will get bigger and the dike will break. What will be the leak that breaks the dike? I am not sure, but it could be the leak in attempting to cap higher coffee prices.
All the best,
Raymond Green
RGreen@ilnk.com

More insight in an action-packed MIDAS:

Hi Bill,
Exxon Mobil Chairman and CEO Lee Raymond was interviewed on CNBC last week and stated that "The supply demand fundamentals of oil do not justify the current high price of crude. "

Yet every day we are hearing about Peak Oil, Chinese demand, cold weather (see the BBC article from Friday which states that world price drivers keeping oil expensive in 2005 will be Chinese demand and "freezing weather" ; BBC: Oil demand 'set to soar in 2005' link: http://news.bbc.co.uk/1/hi/business/4339347.stm ).

Treasury Secretary Snow (job) is forever talking on about a "terrorism premium" on oil driving the price higher.

Yet the oil story is nowhere near as interesting when priced in Euros. I guess there is no terrorism premium for Euro denominated oil.

So what is driving the price? I suspect the above play a role but the prime driver is investors (especially those hedge funds awash in greenbacks) seeking returns and/or protection against an eroding US dollar. The weakening US dollar is the big story in the increase of the US dollar price of oil as is the projection of a future rise in the oil price as the US dollar is further projected to weaken. The math is simple. Meanwhile, CNBC rants on about peak oil and Chinese demand.

This raises an interesting question. What about Gold? As you can see in the attached chart from a previous Metropole contributor, the gold / oil price ratio is near a recent history (15 year) low.

http://stockcharts.com/def/servlet/SC.web?c=$GOLD:$WTIC,uu%5br,a%5ddellyyay%5bd19890322,20050314%5d%5bpb50!b200%5d%5bvc60%5d%5bi%5d%5bJ10994849,Y%5d&listNum=29

Yet we know that the mine supply of physical gold is in deficit to the tune of 40% compared to world demand (roughly 2,500 ton mine supply vs. 4,500 ton annual demand) and the mine supply is decreasing each year. As the US dollar declines, the price of gold will only go up further as the dollar diversifiers increase the supply demand deficit of gold. You hear zero about that on CNBC.

There is one factor with gold that is not present with oil and that is the fact that central banks, to date, have been willing to off-load their gold holdings through leasing onto the market. With the recent comments by Korea, China, Japan and India that they are looking at diversifying their currency reserves out of USD, look for the physical gold demand to become excruciatingly high – so high that Western central banks say " ENOUGH ! ".

Central banks are ultimately going to move to protect themselves and given the above announcements from Asian countries, the point that Western central banks are finished subsidizing the purchase of THEIR gold by Asian dollar diversifiers is near. Didn’t Johnny Cash have a song about " I hear the train a comin’ " ? Well it’s a screaming freight train and the wheels are red hot.
Regards,
Dave

The gold shares retreated some more with the XAU losing 1.06 to 100.13 and the HUI giving up 2.34 to 219.22 and dropping below 220 support.

I want to "rap" up by reiterating that the coming move in gold, silver and the shares will certainly be one of the most spectacular in history. Fortunes will be made. Except for some gold coins, every penny I have is invested in gold and silver shares and will remain that way.

The only question is when the volcano blows. The beauty of what GATA is doing is you can expedite the eruption. You can do so by writing, and or calling your gold companies and urge them to support GATA and come to Gold Rush 21. Many of you HAVE done so. ALL of you should do so.

Don’t just sit there and stew over what The Gold Cartel is doing. Go after them. For crying out loud, Ed Steer spent close to two months on his Call To Arms piece at The Matisse Table, making it easy for you to take action. Time to get with the program. Help YOURSELF!

Two points of thought. When speaking to a gold company CEO, ask them what he thinks his share price would be with gold $200 higher at $640 per pounce. Then inform him of the CRB/gold analysis and where gold should be today if it weren’t for The Gold Cartel. The difference in the share price of $600+ gold and today’s price is how much The Gold Cartel is cheating both you and the company.

When speaking to a silver company CEO, let him know he will have the privilege of meeting Hugo Salinas Price, the influential Mexican businessman who is leading the fight to re-monetize silver in Mexico.

GATA BE IN IT TO WIN IT!

MIDAS