GOLD 0.51% $1,391.7 gold futures

--big buyers emerge for physical

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    September 12 - Gold $318.70 up $2.30 - Silver $4.58 up 4 cents

    The Gold Battle Rages On

    The battle rages on between the free market buying gold forces and the corrupt Gold Cartel that is literally fighting for its survival. I learned early this morning that the hedge fund group I keep referring to bought 15 to 25 tonnes of gold yesterday through a major European bank. That is a HUGE amount of gold for one hedge fund to purchase in a single day. As I suspected, they were the big buyer that took gold right back up through the critical $315 support area and $2 off its U.S. lows. They were buyers again today with a goal of taking gold above $318. They won their second battle in two days against the crooked cabal.

    As stated here for a couple of weeks now, formidable gold buyers have emerged to take on the vulnerable bullion banks that have overstayed their massively short hand. These powerful buyers know what GATA knows and they are determined to be the ones to take the cabal out on "the proverbial stretcher."

    It gets better, I think. From what I am told, Morgan Stanley was not the buyer for this big hedge fund group, which means there is another big buyer out there in addition to the one I keep mentioning. That is why the gold price is coming right back at The Gold Cartel after their gold bashings. They are not getting much bang for their buck because the buying forces against them keep growing in number and in size.

    The Gold Cartel defended key $320 with a vengeance, as that was the high during the U.S. trading session. If $320 is taken out, gold should quickly move back up to $325 and make a run for $330. If gold breaks $330, it should explode with $400 as the next stop.

    How lovely to see the share price of JP Morgan Chase stink up the place again. As predicted by Midas, it fell sharply as soon as soon as the Dow was hit hard. Morgan closed at $22.01, down 97 cents. Morgan acts like a $20 share price has become a magnet and is being inexorably drawn to that crucial price level. My bet remains the same. Morgan won’t make it through the end of the year. It will go down, merge, or be taken over – perhaps by Uncle Sam. They are a derivative disaster waiting to happen.

    MORGAN! MORGAN! MORGAN! Sorry, but after seeing the misery they have caused so many people all over the world, I will not be a hypocrite on this one. I would like nothing better than to see them bite the dust. If they go down, so many people in Africa will have a chance to live.

    Midas has sent reports your way that is has become difficult for many retail buyers to buy gold in Singapore and Hong Kong. Last week Richard Russell reported HSBC would not sell his client any gold. Now this and the reason why:

    Thursday September 12, 1:56 PM

    HSBC Hldgs exits gold trading in Hong Kong

    HONG KONG, Sept 12 (Reuters) - HSBC Metals Ltd, a subsidiary of HSBC Holdings Plc , will disband its gold trading division in Hong Kong in the coming month, a senior executive said on Thursday. "The bank has decided to exit gold trading in Hong Kong," said C.M. Lok, first vice president and head of bullion trading for the bank in the territory.
    The decision was made in New York, Lok said, adding he could not give the reasons for the move. "I was given the notice last month and I am here to wind down the business and clear up everything," Lok said. The division should be closed by the end of the month. HSBC acquired its worldwide bullion trading operations when it bought New York-based Republic Bank in 1999. About 18 months ago, the bank moved its spot gold trader to its Sydney office to compliment the team there, which is engaged in providing financing and hedging strategies for gold producers in Australia.
    HSBC Metals also lost its gold trading unit in Singapore in early 2001, when the entire team switched to Standard London Bank, which then opened an office in Singapore. HSBC did not try to restaff its Singapore office.
    "I think one of the main reasons that they closed Singapore is that the Far East market is too small for them and China is one big market so they wanted to concentrate there," said a Singapore trader familiar with the bank. Several banks will gain from HSBC's departure, in particular Standard London Asia in Hong Kong. The two banks have served a mutual client base around Asia, Lok said.
    Physical gold trading in the Far East has become a competitive business with very thin margins, traders said. Banks and precious metal traders, such as Scotia Mocatta and Standard London, have been aggressive in securing marketshare around the region, they said.
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