gata's comments on the day

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    By Bill Murphy

    Gold $341.80, up $4.60
    Silver $4.66, up 3 cents

    It has taken GATA four years, but the effort
    of the GATA army has paid off. We are routing
    the Gold Cartel, the most powerful and
    wealthiest people in the world. The battle
    plan put in place so long ago is winning the
    day. For new Cafe members, that constantly
    worked plan was based on the "enveloping
    horn" strategy of Zulu warrior Chieftain
    Shaka, Africa's greatest general.

    Gold has been on a tear ever since the
    Howe/Bolser report was published at and brought to the
    attention of the investment world by MIDAS
    and GATA. MIDAS Headliners:

    12/5: Howe/Bolser report stuns gold
    investment world.

    12/6 O'Neill and Lindsey resign after reading
    Howe/Bolser gold report.

    Then Frank Veneroso's latest gold report
    surfaced and was circulated all over. Frank's
    report on the massive gold short position of
    the bullion/central banks confirmed Reg
    Howe's analysis. What is amazing is that they
    came up with the same result using completely
    different methodologies. The big money is
    reading these reports. You don't need to be
    an Einstein to realize that once this cat is
    out of the bag and understood in the
    mainstream investment world, a massive gold
    short squeeze will be inevitable. The smart
    money has been handed two brilliant analyses
    to give them the conviction to take on the
    Gold Cartel.

    That is just what is happening. You can tell
    that by watching the Comex market action.
    These smart-money buyers are toying with the
    cabal shorts. They know they have them and
    are waiting to pounce on the cabal on the
    close almost daily.

    Look at what gold has done since the
    Howe/Bolser report was released:

    Coincidence? I don't think so.

    Today was a sight to behold. Right from the
    get-go, you could tell gold was going to
    roar. The cabal tried to take down gold all
    night and morning, but it was obvious they
    were not going to succeed. Yesterday's
    dramatic selloff then became a positive as
    today's early action showed the shorts to be
    in big trouble. Sure enough, once again the
    smart money buying crowd stuck it to the Gold
    Cartel on the close.

    The cabal has now lost their last line of
    defense, that being $340 resistance. For the
    last two days they gave it all they had to
    try to take gold down. They were whipped! We
    still do not have any gaps to fill on the
    downside. We still do not have that upside
    breakaway gap, followed by a buying panic in
    the United States. That could come any day

    Word was sent my way today that option books
    are blowing up because of the sharp move up
    in the gold price. There is no telling what
    the gold price could do on the upside. That
    $10, $20, $30 up day could be at hand.
    Collectively, the shorts are on the hook for
    some 15,000 tonnes of gold. Mine supply is
    only 2,500 tonnes per year and shrinking. How
    are they going to pay the loans back? Where
    are they going to get the gold? Only one way:
    Gold must rise hundreds of dollars per ounce.
    Then the women and peasants of the world will
    bring their scrap gold in jewelry form to

    What fun! The dumkopf, arrogant Western
    bullion bankers need to be bailed out by the
    peasants. Couldn't happen to a nicer bunch of

    Is the GATA gold story really making the
    rounds? GATA's Ed Steer sends us this:

    * * *

    Bill, I took this paragraph from Wexford
    Capital's December 16 commentary.

    "The breach of the $330 level in gold has got
    to have the bullion banks, forward sellers,
    and gold bears in general smarting from the
    paper losses. Based on what I have read over
    the last five years, I would venture to say
    that the current push of gold prices north
    may entail tens of millions of dollars of
    losses for the bullion banks in particular,
    if not hundreds of millions of dollars. Since
    this market is not transparent -- as many
    U.S. trading markets are not, to the
    detriment of the small investor -- it is
    difficult to put a specific number on the red
    ink flowing from the short positions on gold
    bullion, but one can reasonably assume the
    number is quite big.

    And in relation to equity on the books of
    such stellar corporate citizens as J.P.
    Morgan Chase, it is a company killer or
    insolvency inducing situation. Of course,
    only time will tell, and the crapola would
    have hit the fan years ago except for the
    inside track that these campaign fund
    stuffing aristocrats enjoy through the Halls
    of Power. But no market will stay manipulated
    forever, and we have reached and surpassed
    that critical point in both the gold and
    silver markets. Talk is cheap, so stay glued
    to the commodity tape, and put a few ounces
    of the precious stuff in your stocking for
    the holidays. Will keep much better than
    snack food.

    * * *

    Then this:

    "Bill, CNBC interview with Phillip Gotthelf,
    president of Equidex, mentioned the massive
    gold short covering issue. Goes public! Best,

    * * *

    How ironic! Gotthelf mocked GATA these past
    years. Now, he gets on the tube presenting
    our case as the Howe/Bolser and Veneroso
    reports are circulating all over the
    investment world. Where has he been these
    past years?

    Gold supply news:

    "The Australian Bureau of Agricultural and
    Resource Economics also lowered its estimate
    of 2001/02 national gold yield by seven
    tonnes to 264 tonnes from 271 tonnes. Gold
    production in Australia, the world's number
    three gold mining country behind South Africa
    and the United States, peaked at 318 tonnes
    in 1997/98. Analysts have blamed the steady
    decline since on less exploration work, which
    slowed the pace of new mine development."

    This could not have come out a better time:

    * * *

    Barrick Gold Corp. And J.P.Morgan Chase & Co.
    Accused Of $2 Billion Illegal Gold Market

    NEW ORLEANS, La. -- An anti-trust lawsuit
    filed today accuses Barrick Gold Corp.,
    Toronto, and J.P. Morgan Chase & Co., New
    York City, of "unlawfully combining to
    actively manipulate the price of gold" and
    making (US)$2 billion in short-selling
    profits by suppressing the price of gold at
    the expense of individual investors.

    The suit was filed by Blanchard and Co. Inc.
    of New Orleans, the largest retail dealer in
    physical gold in the United States, and by
    Blanchard clients who bought gold bullion.
    Blanchard ( is paying
    the costs of the suit, which asks the federal
    court to terminate the trading agreements
    between Barrick and J.P. Morgan Chase and
    other, as yet unnamed bullion banks.
    Blanchard believes its clients have suffered
    substantial losses as a result of Barrick's
    and J.P. Morgan Chase's unlawful price
    manipulation, anti-trust violations and
    unfair trade practices.

    * * *

    As Chris Powell said in his GATA dispatch
    today: "GATA has been in contact with
    Blanchard & Co. in recent weeks and will
    assist the lawsuit in any way we can."

    Talk about vindication for the GATA Army and
    our four years of effort to expose the gold
    fraud. For Blanchard and Co.:


    It appears that Barrick's stock caught the
    GATA flu, finishing the day at $15.80, down a
    dime on a $5 up day for gold. All other gold
    shares were higher. May Barrick feel the
    wrath of the Shaka philosophy: Make friends
    or you will be destroyed. Barrick chose their
    course. May they be buried for all the harm
    they have done to so many innocents in the

    The news of the gold price manipulation
    lawsuit has caught fire. The press is all
    over it. Surely, it helps to have gold flying
    as this news is breaking:

    * * *

    "Hi, this is Dave Skarica editor of, writer for and good friend of
    Bill Murphy at GATA. I just wanted to inform
    Bill and the people at GATA that I learned
    about the lawsuit against American Barrick
    and JP Morgan through a news flash on ROB-TV,
    the Canadian version of CNBC). Right now it
    is third on their list of headlines on Keep up the good work, guys,
    and remember there are golden skies ahead!

    "Sincerely, Dave Skarica"

    * * *

    Once again, I cannot stress enough the most
    important consideration regarding the gold
    price is the manipulation issue. Next is the
    increasing demand for physical gold. All
    other factors are subordiate to the first

    The subordinate factors supporting higher
    gold prices are:

    * a weaker dollar

    * low interest rates

    * negative real interest rates

    * rising commodity prices

    *weak stock markets.

    The people who do not "get it" regarding
    gold's price manipulation really know nothing
    about the gold market. They may think they
    do, but they are clueless.

    Gold rocked today with the dollar steady,
    steady commodity markets, and the stock
    market slightly lower. Oil did make new
    highs, rising to $30.37 per barrel, but other
    commodity prices were tagged.

    Stock market players won for so long, many
    cannot bear to get out of their increasingly
    losing positions. Gold share investors have
    lost so long, they cannot wait to take
    profits and get out of their positions. These
    investors must be oblivious as to what is
    coming for the gold price and why.

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