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 www.GoldenSextant.com and brought to the attention of the investment world by MIDAS and GATA. MIDAS Headliners:
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:
http://futures.tradingcharts.com/chart/GD/23
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 now.
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 market.
What fun! The dumkopf, arrogant Western bullion bankers need to be bailed out by the peasants. Couldn't happen to a nicer bunch of guys.
Is the GATA gold story really making the rounds? GATA's Ed Steer sends us this:
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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.
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Then this:
"Bill, CNBC interview with Phillip Gotthelf, president of Equidex, mentioned the massive gold short covering issue. Goes public! Best, John."
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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:
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Barrick Gold Corp. And J.P.Morgan Chase & Co. Accused Of $2 Billion Illegal Gold Market Manipulation
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 (www.blanchardonline.com) 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.
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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 world.
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:
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"Hi, this is Dave Skarica editor of www.addictedtoprofits.com, writer for www.timingwallstreet.com 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 www.robtv.com. Keep up the good work, guys, and remember there are golden skies ahead!
"Sincerely, Dave Skarica"
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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 two.
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.