Bill Murphy writes.........From lemetropolecafe.com:
$4.6 Billion Buy Order Propelling Gold Price!
Gold traded either side of unchanged during the night before getting its daily slam in London. Then, cabal forces wasted little time going after the Comex specs in New York by twice taking gold below $370 support, with $369.30 the low. Result: another Gold Cartel defeat!
Not only did gold shrug off the efforts of the criminals (emails to me calling The Gold Cartel a bunch of criminals are soaring) to take gold down, it roared back in their face all session, making high after high. With a few minutes to go, gold was up $2.50 when the bad guys pounded it off its highs of the day, in ANOTHER "painting the tape" drill. Oh, for the day when we get our Commercial Signal Failure and these low-lifes are carried out.
It now appears The Gold Cartel has moved its Maginot Line up to the $375/$376 area.
The trading was very volatile in New York. As oft-mentioned in this column, frenetic trading is VERY constructive as it demonstrates The Gold Cartel has its hands full and is being taken on by strong hands. Those strong hands keep on buying. The open interest went up another 5867 contracts on Friday to 274,981. Clearly something BIG is going on here. Not that MIDAS has not gone over this for some time. Perhaps we now have a clue as to what it is.
Last evening I received a call from a veteran Café member from London. He was told by his coin dealer in the United States there is a $4.6 billion buy order out there to buy physical gold and gold coins. This particular dealer, who travels extensively overseas, only has a tiny portion of that order, $200,000 in gold coins.
If true, it is a lot of gold. At $370 per ounce, it comes out to 389 short tons, almost the total amount the 15 European nations are selling under the Washington Agreement. 389 tons would be a minimum amount because much of this gold had to be purchased at lower levels. We don’t know how much has been purchased and how much there still is to go.
Normally, I would be quite skeptical of tails of such a grandiose order. But, that is EXACTLY how gold has traded for a month and would explain the price action and why the spec longs have not been forced out by cabal raids. Every time gold dips, this deep pockets buying group is there along with the Indians, Turks, ect.
$4.6 billion is no lightweight operation. Now that the information has come to may attention, I assume the buy program has been underway for some time, but still has a ways to go. Buying that kind of size takes time. It can also be another explanation for the huge increase in open interest on the Comex. These buyers must be very sophisticated, to say the least. Before going after physical gold, they surely would load up on futures and continue to support the futures on dips to protect their positions. Knowing the huge amount of ongoing buying to be done in the cash market, that would not be an inordinately difficult task.
Again, I can’t confirm this order. But, it sure fits right in with what was brought to your attention in a MIDAS commentary last week:
August 28 - Gold $369.90 down $2.40 - Silver $5.11 down 4 cents
More on the physical market and the specs. I am more and more convinced there is a big play on in gold. BIG MONEY is going after the price-capping crooks. To win, this crowd must make their move in the physical market AND the futures market. It was a Mark Rich specialty years ago. Mark Rich is the legendary commodities trader pardoned by President Clinton. Only by supporting the cash market can the big specs prevent The Gold Cartel from flushing out the vulnerable specs, thereby creating an avalanche of selling. Each time the cabal forces try to take gold down, the BIG MONEY buys physical, then go after the futures. Since the cash market is firm anyway, it forces other cash buyers to step up their bid prices. Before you know it, gold is moving up again as local traders begin covering their day trade shorts, etc.
This does not always insure a Large Spec victory, but it is how the game is played in general and is what I see currently occurring in the gold pits. While just a speculation, I believe these big players know what GATA knows, and continues to broadcast all over the place. The Gold Cartel is running out of physical gold to continue their scam. They are gradually hitting the wall and a savvy group is going after them.
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One more point to keep pounding home:
The most important fact of life about the gold market is the strength of the physical market versus The Gold Cartel. This sort of huge buying by a group, or one entity, confirms how significant it is to understand that aspect. Gold has been moving higher without the dollar weakening or due to any financial market disruptions, as evidenced by surging stock markets. The astounding size of the physical market gold buying is making life miserable for The Gold Cartel, a cabal which is used to getting its own way. The bums are running out of enough physical gold to keep the price from going up, way up. Whoever is the taking the cabal on knows just what they are doing.
Gold has no gaps to fill. Terrific! We still have a breakaway gap ahead of us:
https://futures.tradingcharts.com/chart/GD/C3
The stage is set for gold to take out $378 by week’s end.
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This report by the World Banks may be one of the most egregious ones on gold I have ever read. It could only be written by some robotic idiots. Surely, it shows how desperate The Gold Cartel and friends are. Incredible, the World Bank is supposed to be of help to poor countries in the world. Instead, they do work to purposely drag them down. When the gold price explodes, there should be a full-scale investigation into how such a report was ever concocted!
REUTERS World Bank sees gold price falling, nickel strong
WASHINGTON, Sept 3 (Reuters) - The World Bank forecast on Wednesday the gold price, trading around $370 an ounce, should fall below $300 an ounce as new, low-cost mines are started and producers slow the rate they've been buying gold back to unwind price protection contracts.
Gold stormed from around $250 an ounce lows last year, reaching a 6-1/2 year high at $388.50 in February as the U.S. dollar fell and threats of war against Iraq grew.
But the bank said gold's rise should weaken over the medium-term.
"Over the medium-term prices are expected to fall below $300 an ounce as supplies from all sources exceed demand," the World Bank said in a Global Economic Prospects report.
"Even below $300/oz, mine production is expected to continue to increase moderately as new low-cost operations come on stream," it said.
The World Bank also said key for the gold price was whether central bankers renegotiate a 1999 European Central Bank Gold Sales Agreement to limit their gold sales.
The agreement, which restricts some central banks to selling only 400 tons of gold per year, expires a year from now. Market participants have speculated it will be
renegotiated at next month's International Monetary Fund-World Bank annual meetings in Dubai.
The bank said gold companies had been unwinding their gold hedging programs, cutting hedge books by 4.5 million ounces in the first quarter this year.
"It is expected that producer dehedging will slow in the second half of this year and in 2004, and remove much of the support under gold prices," it said
Major gold producers have been buying back gold and cutting their hedging programs since the price stirred from $250 an ounce. Smaller hedge books give producers bigger exposure to a rising gold price.
The World Bank was more optimistic about the nickel price, saying it should jump significantly over the next couple of years with no new projects on the horizon until about 2006…...
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Gold production going up? There isn’t anyone in the gold world who says as such, anywhere!
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The Gold Cartel has bullied the gold market to suit their own agenda for many years. Someone, or somebody’s, have surfaced to take them on. The way to do that is to go after the physical market because it is their weak link. They are hitting the wall when it comes to finding enough gold supply to satisfy growing physical demand. There is only so much the cabal can do without flagrantly violating various charters or laws in various countries.
The gold chickens are coming home to roost. Bullion demand must be running at the rate of 1600+ tonnes/year greater than available mine and scrap supply. To keep the gold price from soaring, The Gold Cartel keeps adding to their gold loan/swap operations, going more and more into hoc. They have been found out, in part due to the multi-year efforts of the GATA Army. The cabal is in deep trouble. Demand is growing and mine supply (regardless of what the pitiful World Bank says) is going to decrease for years to come. A trapped Gold Cartel is going down. Only a matter of time. The way the futures have been trading, it seems like their comeuppance is VERY close at hand.
GOT TO BE IN IT TO WIN IT!, that's what H. Jackson Brown, Jr is saying to gold investors.
MIDAS