Murphy On the Markets
Bill
Murphy
August 24 - Gold $402.90 down $7.60 –
Silver $6.56 down 18 cents
Sprott Asset Management
Inc. Publishes Gold Manipulation Study
Endurance
is one of the most difficult disciplines, but it is to the one who endures that
the final victory comes...The Buddha
GO
GATA!!!!!
Until The Gold Cartel is defeated, what I
and everyone else reports on regarding the gold market is mostly a bunch of
noise. Every time gold rallies it will be crushed by the cabal monsters, just
like we have seen the past few days. This is why the following is HUGE news for
anyone who intends to make money with their precious metals investments:
Sprott Asset Management Inc. Publishes
Gold Manipulation Study
TORONTO--(BUSINESS WIRE)--Aug. 24, 2004--Sprott Asset Management Inc. announced
today the publication of Not Free, Not Fair: The Long-Term Manipulation of the
Gold Price.
The study represents the most thorough and
detailed examination of allegations that the gold market has been subjected to
severe price manipulation over the past several years.
Commenting on the landmark report, John
Embry, Chief Investment Strategist, stated:
"We, at Sprott Asset Management, have
felt for some time that the gold price has not remotely reflected its true
underlying fundamentals. In response, we have conducted a comprehensive study
of available information on the subject and have concluded that the evidence
strongly supports those who believe that the gold price has been and continues
to be suppressed."
The study may be read in its entirety on
Sprott Asset Management's website: www.sprott.com.
Sprott Asset Management Inc. (www.sprott.com)
is a Toronto based private company with over $1.6 billion in assets under
management primarily for institutions, endowments and high net worth
individuals. Sprott Asset Management Inc. is the investment manager of the
Sprott Energy Fund, Sprott Gold and Precious Minerals Fund, Sprott Canadian
Equity Fund, Sprott Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund
LP II and Sprott Opportunities Hedge Fund LP.
-END-
This report has been sent to the major
financial market press in Canada, the US and part of Europe. It also has been
sent to every major gold producer and to many of the junior gold producers.
The reason why this report is so
significant is that the "Dracula-like" Gold Cartel cannot withstand
“the light of day” that scrutiny brings. The cabal’s cross is THE TRUTH, which
they have gone to Herculean efforts to hide from the investment world. A
dispassionate report such as this one, which ties together so many FACTS, is
going to shine a light on what the gold market has been really about for many
years.
As more and more investors realize what the
price manipulating cabal has done, they will want to buy more physical gold
because the eventual outcome for the price will be more apparent. It must go
MUCH HIGHER! Big player investment-types will come to appreciate this Gold
Cartel is RUNNING OUT of enough physical supply to carry on their fraud. As
this report circulates its way among other central banks, it will attract more Argentinas
who will realize the value of adding gold bullion to their currency reserve
positions.
When it comes to the major gold companies
and the ones you are investing in personally, they will need some time to read
this very detailed report and to digest its findings. Then, they should be
asked what they intend to do about it, for there is no more important issue
they can address. For if the price of gold is not allowed to rise like it
should in a free market, it won’t matter what else they do as a firm. As gold
company shareholders, your investments will remain a losing proposition if The
Gold Cartel is allowed to continue on their merry, scheming way.
I reiterate. The price of gold should be
hundreds of dollars per ounce higher than it is today and will be once The Gold
Cartel is exposed in a major league way. It is up to GATA, gold producers, and
gold shareholders to win the day. This brilliant report by Andrew Hepburn, John
Embry and Sprott Asset Management is one the entire gold industry should run
with. Let all Café members and GATA supporters do their part to make sure this
report gets the proper attention it deserves. Spread the word, thunderbird!
For example, this is an interchange I had
this morning with a European Café member who happens to be a highly regarded
journalist:
Thanks willem,
Spread the word in Europe if you can. This can really help us end this nightmare.
bill
agree...already done....distributed to 700
professionals of my mailing list and on my website...
this will make a difference...
willem
Back to the mundane world
of reporting on the corrupt casino crowd. Once again the cabal is pulling off
another fleecing of the funds, who have been suckered for the umpteenth time.
These funds bought more yesterday on the pullback and are getting their clock
handed to them today with gold under pressure from further cartel bombardment.
The Gold Cartel continues to rip off the funds with clockwork precision
as the funds continue to donate to the coffers of Goldman Sachs, JP Morgan
Chase, etc., year after year after year. Meanwhile, these arrogants also laugh
their way to their own bank as they fleece you too! Sick of it yet?
The gold capping last Friday was as
blatant as it will ever get, as evidenced by the extraordinary 19,000+ contract
open interest increase. Gold should have rallied $16, not $6, with that kind of
buying power. It did not because word went out from cabal headquarters to STOP
the advance. Yesterday and today were follow-through cabal efforts, which have
been effective. The gold open interest rose another 4,745 contracts yesterday
to 261,822 as further evidence of fund buying and cartel selling. As of today’s
close, all those in the Gold Cartel who sold yesterday and Friday have nice
profits. The specs who bought the breakout above $405 are underwater. .
Tired silver continues to retreat. While
the funds were pouring into gold yesterday, they began to puke out their silver
longs. The open interest dropped 2607 contracts to 102,324. The gold/silver
price manipulators have the specs in these markets on a merry-go-round. They
suck them in and then blow them out. Do you realize how much money these crooks
have made over the past 8 years? It is staggering!
Potential biggie here:
The silver stocks in the Comex warehouses
fell to a new multi-year low at 109,550,402, down 580,112 ounces.
Ted David of CNBC had the acting head of
the CFTC on this morning to talk about possible oil price manipulation. When a
market goes against what Wall Street wants, it must be manipulated. Yet, when
we bring their attention to the most obvious market manipulation in history,
that being the suppression of the gold price, they won’t touch it, as it is
against the interests of Wall Street. Fair and balanced? What a joke! That
includes you, Bill O’Reilly at Fox News, you bombastic Irish blowhard!
The
John Brimelow Report
Big
Brother IS watching us!
Tuesday,
August 24, 2004
Indian ex-duty premiums: AM $6.42, PM
$6.90, with world gold at $407.20 and $406.40. High: ample for legal imports.
At these prices, India is prepared to underpin the world gold market. Standard
London resumed regular updates of their Dubai kilo bar prices today
(http://www.standardbank.com/PreciousMetals/home.asp
); the premiums which can be deduced are still respectable.
Japanese liquidation has accelerated.
Although the active contract closed down 12 yen, open interest fell the
equivalent of 1,112 Comex lots to only equal 92,381 Comex contracts. The 1-day
lagged Member’s position data suggests this may understate the pace of the
public’s retreat from the market in the last few days. Aggregate volume was
down 48% to the equivalent of 19,066 Comex lots. The two-week long rise in the
yen seems to be eradicating any appetite on the part of the public for gold
futures. (NY yesterday traded 40,312 contracts; open interest rose yet again,
by 4,745 lots.)
Yesterday’s steady selling pressure has
emboldened the Bears, with both JP Morgan’s "Metals & Energy Technical
Strategist" and Commerzbank’s Technical commentary stressing that gold
stopped on Friday at the upper bound of an uptrend channel. Morgan has put on a
short and Commerzbank is musing about a move to the lower bound of the channel,
at $385. Getting there, considering current premiums, would take a great deal
of physical gold sales.
Undiscussed in all this is the
significance of the huge, 59.7 tonne open interest increase reported yesterday.
Open interest has now risen 39,235
contracts – 122 tonnes – in the past five business days, for a net gain of just
over $7. UBS rather plaintively
notes that their estimate that the Comex net long is about 15 million ounces
still leaves 7 million ounces to the Q1 peak, but in fact the inflection rate
is chillingly steep. Even yesterday’s down gold price day, which must have
shaken out some of Friday’s more opportunistic longs, saw an appreciable open
interest increase. One notes that John Embry’s 70 page discussion of gold price
manipulation, posted this morning to his firm’s website http://www.sprott.com/ , has excited so much
interest the web site keeps crashing. This seems understandable.
JB
CARTEL CAPITULATION WATCH
As is so often the case, the S&P and
other futures contracts came in a good deal higher as the PPT did what they
could to set the market tone once again. Their efforts met modest success,
however initial gains were not held for the most part. The DOW gained 26 to
10,099, however the DOG lost 2 to 1837. The S&P closed around 3 points off
its opening call.
The dollar rose handsomely once more to
close at 89.55, up .37. The euro fell .62 to 120.79.
The US economic news of
the day:
07:45 UBS chain store sales index +0.1% in
8/21 week after (0.6%) in prior week
* * *
* *
Redbook chain store sales index (1.0%)
through 8/21 week vs June
This marks a slight deterioration vs the (0.6%) reading vs June reported last
week.
* * *
* *
10:00 July Existing Home Sales reported
6.72M vs. consensus 6.81M
June reading was revised to 6.92M from 6.95M.
* * *
* *
GATA’s Mike Bolser:
Hi Bill:
The Fed added $6.5 Billion in temporary repurchase agreements today August 23rd
2004, an action that shot the repo pool up to $56.265 Billion but also kept its
30-day ma running flat in a "plateau" pattern. The DOW remain weakly
up about 30 points at 11AM. The pool's 30-day ma runs at $45 Billion a value
that is the highest of the series and what I see is the beginning of a
sustained period of elevated repo pool conditions.
Looking forward there is a largish expiration on September 2nd of $11 Billion
and IF the Fed chooses to offset that expiry with an equal amount, the pool
will have an intra-day value of say, $20 Billion PLUS the carried amount giving
the primary dealers a very large source of futures buying exactly at the
beginning of the real political season. I am still holding to the notion of a
DOW September rocket until, as a Blue Dress challenged president once said,
"Until the last dog dies". I will none-the-less be happy to concede
defeat.
Gold
Even though gold seems to have slipped back to $406.20 (PM Fix) the dollar went
up somewhat offsetting the drop when we use the DIVG to value gold. More later.
Mike……..
Hi Bill:
During this period of Fed transition it is important to watch things very
closely so as to obtain the earliest possible data on their new intentions.
Today they are continuing to ease the DIVG ma upward while giving the false
impression of another attack. They may yet enter a cyclic down move, attempting
to hold a defense line with a smaller wave pattern than they did in 2003.
The DIVG sits at 352.78. Some of my other metrics have yet to change downward
in the MCDI and upward in the PM Fix but I'm expecting them to move those
directions this week.
I am quite certain of the importance of the DIVG to the gold cartel and offer
four telling characteristics (1) The dollar/euro parity ceiling defense at
DIVG=323 (2) the clear cyclic defense of three waves above and below that line
(3) the almost perfect linear retreat which began in Feb 2004 as a result of
the Fed failure to hold the 200-ma below the target DIVG 323 level and (4) the
choice of a retreat slope being exactly equal to that linear regression slope
of the previous six months (beginning with a very bad DIVG upward loss day on
July 21rst 2003).
These facts cannot be explained by anything other than human intervention in an
effort to steer the 200-day ma. There are other implications that will be
revealed in the future from this set of facts that shatter the Fed's
dollar/gold propaganda machine.
The existence of COMEX preemptive selling, with its 3 and even 4 standard
deviation episodes has provided an anchor which firmly holds the assertion of
government intervention and serves as a warning to all that imagine a freely
traded market in precious metals. That belief is a Fed engineered illusion.
Mike
Houston’s Dan Norcini on the soaring gold
open interest:
Hey Wild Bill:
Open Interest figures just came down the wire feed and again, they are
shocking. They show another massive increase in new shorts, (some 4,475 to be
exact) absorbing every bit of fund buying yesterday as well as that of Friday.
That yields a total of 23,807 new shorts thrown at this market by the gold
cartel in the last two trading sessions alone. We are now at 261,822 on the
total open interest.
Sadly, this is all too eerily reminiscient
of their ploy merely a month ago when they piled on enough shorts to bring the
Open Interest totals to 263, 574 before gold rolled over again near the 412
level basis December 04. With today's price action, some of the short term
oscillators have already turned down once again exactly as they did a month
ago.
Mahendra might have said that "no
force on earth" could keep gold from rising this time around, but Alas,
Mahendra, the cartel view themselves as demi-gods in their own mind and thus
are the high and lofty ones who have condescended to grace us mere mortals with
their heavenly presence. As such, they are not of this earth! (Just ask 'em -
Last I heard they were ordering T-Shirts with the words "BE LIKE US AT THE
GOLD CARTEL" printed on front and back). I even heard the rumor that Alan
Greenspan had posed for a picture to imprint on a special edition Gold Cartel
Sweat Shirt (If you order two of them, they will throw in some of those knives
that let you cut through cans and still slice tomatoes with ease). I personally
view them as better suited to the bowels of the nether regions (some refer to
that as hell) but that is only the opinion of a mere peon, an ungrateful wretch
who fails to recognize how greatly they have benefited society as a whole!
Truth be told, the pond scum who make up this cartel feel they have been given
some sort of God-given right to plunder the wealth of those who are prudent
enough to hide themselves from the coming financial storm.
The short of it is that gold is in a
reaction setback mode right now after having risen nearly $30 in less than a
month. We will have to see where the buying support surfaces. I have a feeling
that it is going to be at a higher level than last time. I am especially
interested in how it handles the $400 region. Physical market buyers are indeed
waiting under this market and will let it come to them. When they step up to
the plate, we will more than likely take out to the reaction high near $417
this time around very quickly and easily. The dollar rally is a joke.
Time will tell.
Best,
Dan Norcini
What is so sad is that so many people
associated with the gold market and who make commentary are affected with the Not
Invented Here Syndrome. Because the discovery that the gold market is a
manipulated one is not their own idea, most will not deal with the most important
aspect of this market. You would think the recent and incredibly obvious price
management (via the dramatic open interest rise versus the minimal price
movement the past few days) would enlighten many individuals still analyzing
gold as if it were a free market. Fortunately, the people at Sprott were
willing to deal with the evidence and are mature enough to speak out. This is
no small event. It is extraordinarily significant, as it will expedite the
downfall of The Gold Cartel.
This email to GATA's Chris
Powell hits the nail on the head:
Chris,
On March 26, 1951 Mickey Mantle crushed a home run in an exhibition game played
at Bovard Field at the University of Southern California. The ball left the
park in right-centerfield, and crossed a football field adjacent to the
baseball diamond. It is reputably the longest home run ever hit, traveling 656
feet, over two football fields long.
That's how I feel what GATA did today with
the release of the Sprott study by Embry (and Hepburn). Congrats on a job well
done. Now maybe we get some publicity.
Dale Holmgren
On JP Morgan Chase, the derivatives King:
Bill;
This Reuters article: http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=6038683..........
speaks of J.P. Morgan's talks to become a stake holder in state owned - Bank of
China. They are already "banking" Iraq. GATA wonder what's next eh?
Wouldn't you figure they have enough on their own plate?
Amount of notional increase J.P. Morgan
Chase derivatives book increased in latest quarter – 3.2 trillion.
Who J.P. Morgan does all those trades with - ?
Assuming there are 20 hours in a day that J.P. Morgan can viably transact
global business institutionally, trading minutes in a day – 1200
Assuming 22 business days per month, number of business days per quarter – 66.
J.P. Morgan tradable minutes per quarter – 79,200.
Increase in book size this quarter: 3,200,000,000,000 / 79,200 = 40,404,040 per
minute.
Number of lunch and bathroom breaks traders at J.P. Morgan take - ?
Then again as evidenced by the numbers
above, these guys really are good - aren't they?
best,
Rob
From Stephen Leeb, a well known money
manager:
Aug 23, 18:10
Since the end of 1998 oil has climbed from about $10 a barrel to its current
level of over $45. Not once during this entire period has any major Wall Street
firm forecast a higher oil price one year forward. Wall Street, in other words,
remains a subject for the psychology texts with denial and group thinking
overwhelming any semblance of analysis. –END-
It’s not only oil. I can’t think of one
Wall Street firm who predicted the gold market rally over the past three years
either. Notice a pattern here? Both a rising gold and oil price are negative
for Wall Street. Therefore, they refuse to deal with it honestly by giving
objective analysis to the public. Either that or most are Ivy League
stuffed-shirt dummies.
This is another example of the kind of
effort it will take for us to win the day:
Hello again Bill:
I think that we're about to turn the corner on the gold cabal. I believe the
timing and contents of the Sprott report is an ominous development for the
manipulators, released at a MOST inopportune time, given their latest egregious
machinations. Their footprints all over gold and the US$ today could not be
more obvious. I am e-mailing that report to as many financial reporting
agencies as I can. The cabal is DEATHLY afraid of something, and we're going to
find out what that is shortly.
I have been through the wringer with gold
since 1999, yet I believe it is time to buy TODAY, and I'm acting on my
information and beliefs. I surmise that our time is at hand; and I sense blood
in the market waters. I am close to completing my buying of trading positions
in Novagold and Golden Star today. I fully expect to regale all those who will
listen in the future with tales of my purchases today.
My greatest temporal concern remains: what
kind of country (and world) have we devolved into as a result of the
unprecedented monetary fraud we have been subjected to by the banksters, who
appear to own and operate the finances of the de facto U.S. government with
impunity. Time will tell as always, and time is on OUR side.
best regards, Tom K
Hi Bill,
Well, once again the gold crowd has proven it has all the dedication of a
mercenary with a better offer. Someone at the dollar-diddling ESF screams
"Boo!" and these metals guys exit their positions faster than a
first-time fire walker over the red-hot coals!
I swear I just can't figure out what makes
these gold bugs tick. Why are they so damned skittish? They dart in and out of
position like water bugs. Things finally begin moving our way again, and these
ninnies have all the conviction of a cliff diver with acrophobia.
Maybe these folks know something we don’t.
Do they have a strong case for their unwillingness to take a stand? Let's have
a look at two quick charts to find out...
Here's a multi-month chart of the U.S.
Dollar. This chart was created using data through yesterday, but if we could
see today's price action it would show us that the dollar came just up against
the down-sloping top green line and bounced right back down.
Naturally, the price will have to break
out of this symmetrical triangle in the next week or so. My only question is,
why would anyone be banking that the direction will be UP!!???
The dollar's fundamentals stink to high
heaven—perhaps as badly as at any time in the last fifty years. With nearly
everything going against it (including the administration's need for a weaker
dollar to have any chance for re-election) I can't imagine that anyone in his
right mind would be a long-term dollar BUYER. The ship is sinking but the band
plays on...
Now, here's the gold chart:
Bill, have a look at this graph and tell
me just one thing: what on earth has this wimpy gold crowd so scared to take a
stand?
This isn't just some six-week chart we're
looking at. This thing is now firmly established for THREE YEARS! And look at
that MACD indicator. It's coming off the most oversold condition since the
major uptrend began, and folks are jumping ship—again!—as if Ronco just
invented a gold machine and was selling it on cable (with a set of Ginsu
knives, no doubt) for $19.95.
Sheesh. All I can say is that when (not
if) the metals finally take off for the moon, those of us who stayed in the
game can't possibly be compensated enough for having stuck with our
convictions.
Frustrated but still on board,
Derek
The gold shares continued to work off
their overbought condition. The XAU dropped 2.14 to 91.66 and the HUI lost 5.50
to 199.35.
The Sprott gold market manipulation report
trumps everything else by far today. This is a highly regarded firm which has
put its name and reputation on the line in an effort to expose one of the great
frauds in market history. They are also going all out to give the gold industry
ammunition to help itself. This is a facet of the mainstream gold world
speaking to the rest of their community.
Let all of us do our part and run with
this extraordinary report and effort. It is time for The Gold Cartel to be put
in their place, and for the price of gold to trade freely in accordance with
its natural supply/demand fundamentals.
GATA BE IN IT TO WIN IT!
MIDAS
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