latest from gata on gold

  1. 12,916 Posts.
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    10:28p ET Sunday, June 15, 2003

    Dear Friend of GATA and Gold:

    While the financial world speculates about gold,
    GATA consultant Reg Howe once again digs
    out the source material and reports the facts.

    In his new commentary tonight, titled "Not
    Your Father's Gold Market," Howe analyzes the
    latest figures on gold derivatives as reported
    by the Bank for International Settlements and
    the U.S. Treasury Department's Office of the
    Comptroller of the Currency.

    He concludes that gold derivatives -- paper gold,
    promises to pay gold -- are exploding even as
    mining companies are sharply reducing their
    hedging positions.

    Howe writes: "At over 30,000 tonnes, total gold
    derivatives are now approximately equal to total
    reported official gold reserves. Yet, although the
    data on gold derivatives reported by the BIS
    represents the only publicly available information
    compiled on the global gold market according
    to a published methodology by a presumably
    reliable source, neither the World Gold Council
    nor Gold Fields Minerals Services appears to
    make any effort to try to reconcile their statistics
    on global gold flows with the BIS figures."

    There's only one way to read the data: That the
    central banks have thrown most of their gold at
    the market in a desperate effort to suppress the
    price, to channel investment demand for gold into
    paper gold rather than the real thing, and to
    prevent people from escaping the bank-controlled
    paper economy, and that the banks don't have
    much gold left.

    Howe's new commentary is bound to be the most
    important examination of the gold market for
    some time. It is admirably complemented by
    charts drawn by GATA consultant Mike Bolser.
    It is the antidote for the disinformation that
    surrounds the gold market. You can find it at
    Howe's Golden Sextant Internet site here:

    Or try this abbreviated link:

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