Post by jeffolie on Oct 18, 2007 10:12:57 GMT -6
Fort Knox gold in play
The gold bugs were right.
Nevertheless, for the longer term, the gold bug faction lead by Bill Murphy's LeMetropole Cafe Website is cockahoop. It has long argued that the metal's price has been repressed by what it calls "The Gold Cartel " an alliance between the official sector (central banks, the U.S. Treasury) and chosen instruments (key investment banks and co-opted bullion dealers and others) to create a financial assets boom.
Reason for rejoicing: The discovery by James Turk of the Freemarket Gold & Money Report that, as Turk puts it: "the U.S. Treasury quietly made a subtle change to its weekly reports of the U.S. International Reserve Position, which includes the U.S. Gold Reserve. This change was first made May 14 ... It says the U.S. Gold Reserve is 261.499 million ounces and importantly, that the gold is now reported 'INCLUDING GOLD DEPOSITS AND, IF APPROPRIATE, GOLD SWAPPED' (emphasis added).
"This description provides clear evidence that the U.S. Gold Reserve is in play. Gold has been removed from U.S. Treasury vaults and placed on deposit, presumably in the couple of bullion banks the Treasury has selected to assist with its gold price-capping efforts. Gold placed on deposit gets loaned out by these bullion banks, and then sold into the spot market to try capping the gold price."
This is exactly what the LeMetropole Cafe gold bugs have long said was happening.
It may seem like an arcane point. But I remember when the idea that central banks were systematically selling gold at all was dismissed as crankishness. Yet it's now universally acknowledged.
And gold, by the way, has fought its way much higher just as the gold bugs said it would.
Turk's conclusion: "This new evidence provided in the U.S. Treasury report as well as the rising gold price itself suggest to me that we are now witnessing the last scramble by the gold cartel to cap the gold price. It is a vain attempt by them, acting under the instructions of the U.S. Treasury, to make the world think the dollar is worthy of being the world's reserve currency when in fact everyone knows that it is not. In short, the wheel has fallen off the truck. The dollar is heading for a train wreck. Use whatever metaphor you want, but the message is clear - the dollar is in serious trouble ..
.
"The flight out of dollar-denominated assets is gaining momentum, and gold is one of the safest places to be in a currency collapse."
www.marketwatch.com/news/story/gold-bugs-were-right/story.aspx?guid=%7B537BB029%2DB47F%2D46F0%2D8537%2DBD170ED0B224%7D
The gold bugs were right.
Nevertheless, for the longer term, the gold bug faction lead by Bill Murphy's LeMetropole Cafe Website is cockahoop. It has long argued that the metal's price has been repressed by what it calls "The Gold Cartel " an alliance between the official sector (central banks, the U.S. Treasury) and chosen instruments (key investment banks and co-opted bullion dealers and others) to create a financial assets boom.
Reason for rejoicing: The discovery by James Turk of the Freemarket Gold & Money Report that, as Turk puts it: "the U.S. Treasury quietly made a subtle change to its weekly reports of the U.S. International Reserve Position, which includes the U.S. Gold Reserve. This change was first made May 14 ... It says the U.S. Gold Reserve is 261.499 million ounces and importantly, that the gold is now reported 'INCLUDING GOLD DEPOSITS AND, IF APPROPRIATE, GOLD SWAPPED' (emphasis added).
"This description provides clear evidence that the U.S. Gold Reserve is in play. Gold has been removed from U.S. Treasury vaults and placed on deposit, presumably in the couple of bullion banks the Treasury has selected to assist with its gold price-capping efforts. Gold placed on deposit gets loaned out by these bullion banks, and then sold into the spot market to try capping the gold price."
This is exactly what the LeMetropole Cafe gold bugs have long said was happening.
It may seem like an arcane point. But I remember when the idea that central banks were systematically selling gold at all was dismissed as crankishness. Yet it's now universally acknowledged.
And gold, by the way, has fought its way much higher just as the gold bugs said it would.
Turk's conclusion: "This new evidence provided in the U.S. Treasury report as well as the rising gold price itself suggest to me that we are now witnessing the last scramble by the gold cartel to cap the gold price. It is a vain attempt by them, acting under the instructions of the U.S. Treasury, to make the world think the dollar is worthy of being the world's reserve currency when in fact everyone knows that it is not. In short, the wheel has fallen off the truck. The dollar is heading for a train wreck. Use whatever metaphor you want, but the message is clear - the dollar is in serious trouble ..
.
"The flight out of dollar-denominated assets is gaining momentum, and gold is one of the safest places to be in a currency collapse."
www.marketwatch.com/news/story/gold-bugs-were-right/story.aspx?guid=%7B537BB029%2DB47F%2D46F0%2D8537%2DBD170ED0B224%7D