Comments- - Vancouver Gold ShowMike Bolser (member of GATA) spoke today about the following:
-Think big when you think of what the Fed is capable of
-All US aircraft carriers are out at sea
-US Troops leaving South Korea to go where???
-US is very interested in Saudi oil and really wants to "protect" Saudi gold reserve
-The Fed is driving gold price down and interest down so they can takeover companies like Newmont.
-The Fed is printing so much money it is impossible for gold to rise right now
-derivatives have increased by 50% in gold and 100% in oil
His 2 main recommendation are:
1) Buy physical gold and move it outside US
2) Buy small junior exploration companies that are outside US
*****He believes the US is getting ready to fix the price of gold again ($380)***********
From Lemetropolecafe today:
Gold? Forget it! Doesn't matter. Looks like our "friends" have decided that it ain't gonna budge until they are ready to let it move. I could not agree with Mike Bolser more - tech analysis, fundamental analysis, is useless when dealing with a managed market. I am willing to bet that outside the GATA camp - the vast majority of investors who are looking at gold are completely and utterly befuddled.”
Also:
GATA’s Mike Bolser over the weekend:
Hi Bill:
After some thought about the current furious onslaught by the Fed and interpreting unpublished data, the Fed may be in the beginning of its end game for gold and interest rates. They are at least setting up a new defense position but aren't doing it with any finesse and that's a worry.
The Fed's end game must force rates higher, deliver some sort of rescue for the trillions in interest rate derivatives (IRD) while ceasing or at least thwarting gold speculation in the US and UK.
Parmelat's interest rate derivatives explosion still resonates across Europe and there may be many more like them waiting for grim announcements. How these IRDs will be resolved is anybody's guess but they must be resolved if rates go higher, as they must. Perhaps by a new class of government bond, take your pick from a basket of new government colored paper.
We know that seismic events have recently occurred through the departure of Rothchild's and AIG from the LBMA PM Fix mechanism. Suppose those things happened because they knew there would no longer BE a PM Fix after a specific date? Instead, the PM Fix would be replaced by a government fixing mechanism....gold at $375...gold at $400...gold at...take your pick.
Should the LBMA stop trading gold and silver as they have been, the COMEX and probably the Australian and TOCOM markets in addition, would necessarily follow suit, effectively bailing out all shorts and trapping all gold and silver longs with zero gain when the rest of the world (ROW) later restarted free gold and silver trading (At far higher prices) in Shanghai, Dubai and Ankara. It is this default risk that so many in our field have ignored for too long.
It is therefore my recommendation that your readers take appropriate steps to guard against such an occurrence. Entities such as the Central Fund of Canada [CEF], its counter part in Australia at the Perth Mint, small exploration gold equities such as J Pacific Gold and Samex Gold plus many others such as Golden Star Resources are relatively immune to shorting intervention and would survive any cataclysmic COMEX closure. Any qualtity debt-free gold exploration firm with a good portfolio will be a haven. And of course the price of physical is getting better and better each day as the off-take rises. Getting physical metal later, simply won't be an option at these prices. As Professor Fekete warns, "Zero supply, infinite demand". We must heed his warning.
It is the COMEX contracts themselves that seem the most vulnerable to such an unthinkable event. There will be no warning, only an announcement after the fact and a return of paper equity with no opportunity to move to another vehicle before trading restarts.
The above opinion may seem alarmist and to the mainstream gold community it is clear heresy but this is what I think may happen if not now then later. The glum faces at the G-8 only reinforced my feeling on this point. Surely the US asked for more central bank gold as they did from Spain and Portugal going into the Iraq War, putting their leaders on a public dais as a perk for their all around cooperation. Portugal later announced their gold sales. It didn¹t appear that the US got much of anything from the G-8 on Sea Island except perhaps some gold jawboning from the French Central Bank.
If there is to be such an extreme action, it may come around the Fed meeting which begins on June 29th or the following weekend (July 4th).
Mike