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I read an article in the financial post today about some bullish technical
chart patterns in some of the gold stocks. I think I will take a look at
some and check out call option prices. The May issue of TASC magazine page
102 Does Gold lead the bond market?
>From: LePatron@xxxxxxxxxxxxxxxxxxx
>To: trdoptions@xxxxxxxxxxx
>Subject: Gold -Reuters-Goldman Sachs-the "Hannibals" /The CBT and David
>Tice
>Date: Thu, 12 Aug 1999 18:30:14 -0400
>
>Le Metropole members,
>
>Gold closed $1.50 higher today as Goldman Sachs
>bought and the funds were sellers (it makes no sense
>that the funds would be selling today but that is
>what was reported)
>
>There are two reasons I am sending out this email
>as a follow up to the bulletin sent earlier today.
>
>1.The first was a Reuters story regarding
>"Hannibal Lechter" himself(Goldman Sachs)
>
>
>"Goldman says COMEX gold grab normal business relations"
>
>"New York, Aug 12 (Reuters)- Investment bank Goldman Sachs
>and Co. said on Thursday that its recent stockpiling of gold
>through the New York gold futures exchange did not reflect
>any unusual activity for the firm.
>
>According to figures available to the public from the COMEX,
>a division of the New York Mercantile Exchange, the firm has
>apparently amassed about 15 tonnes of gold in August, owning
>half the gold stocks in exchange warehouses, while the
>troubled gold market gossips about the ramifications.
>
>
>"Goldman Sachs is one of the largest and most active
>participants in the market and this is all within the normal
>course of business," a spokewoman for the firm told
>Retuers. "We are seeing very strong demand for the physical
>metals."
>
>Goldman, which trades through it commodities arm J. Aron
>and Co., has so far this month taken about 95 percent of the
>metal offered by other players for physical delivery against
>short futures posititons.
>
>Of the 4,995 100-ounce Comex contracts to be delivered as of
>Auguest 12, the investment bank will receive gold from
>4,735 contracts.
>
>This amounts to 473,500 troy ounces of bullion--14.7 metric
>tonnes-- or about 50 percent of the 948,973 ounces now held
>in Comex warehouses.
>
>"That is what you call accumulation," said Don Tierney of
>Pell Brothers Trading.
>
>That has obviously helped the market up and also put the
>strength in the nearby (futures contracts)," he said. "They
>have taken a long position and they now own half of the gold
>in the COMEX bank. This isn't short covering."
>
>Bearishness about gold prices has dissipated somewhat in
>recent days......
>
>"These scares about delivery versus warehouse stocks very
>rarely amount to anything because it's not that difficult
>to replace them, I'm talking about all commodities," said
>Brimelow, a mining equity analyst at Donald and Co.
>
>"As far as a literal shortage of metal in the world, I don't
>think it's terribly significant," he said, adding "it may
>be a sign, in that Goldman suddenly started making bullish
>noises about a week ago." End
>
>Midas would like to pass on to you one other tidbit.
>According to one of our reliable sources, Goldman
>stands in line to take the remaining 3600 or so contracts
>that are still outstanding on the August contract. It is
>normal for these contracts to be whittled down daily until
>the contract expires. Today, it was reported that the open
>interest in the August contract went up 4 contracts. That is
>a bit unusual so late in the delivery period.
>
>Regarding the significance of this development. Hard to say -
>then again - maybe not.
>
>While we have reported on this before. I received an anonymous
>letter today from New York - addressed to me as the
>Chairman of GATA:
>
>"The Chief Economist for Goldman Sachs in London is a guy
>called Gavin Davies who is apparently, a bosom buddy of
>Gordon Brown on a personal basis. Goldman Sachs also
>apparently advises the UK Exchequer on economic policy.
>Gavin Davies'wife is on Gordon Brown's staff as office
>manager or some such title. Close to the wind, huh?"
>
>Yes, very close to the wind! - especially when one considers
>the following chain of events. Gold was about to break $290 on
>the upside on May 6. Several "Hannibals" reported that day to
>clients that the price of gold would NOT go above $290.
>The very next day, and out of nowhere, the Bank of England
>announces they will sell 415 tonnes of gold.
>Goldman Sachs then is a very large visible seller
>almost every day after the announcement and Midas
>told you so at the time.
>
>In a "Who's on First" performance that Abbott and Costello
>would have admired,the British government fumbles around
>as to who authorized the BOE sale. It has become a "he said"
>"she said" routine between the Bank of England, Tony Blair
>and the UK Exchequer for three months now. To this day
>no one knows who made this decision. But, it is such an
>important Labour Party decision that poor African countries
>have been completely rebuffed (to date) in their request to
>have the BOE sale cancelled.
>
>The gold price collapses some $38. Then look at what happens.
>U.S. Treasury Secretary Rubin leaves office July 4th. A
>couple of weeks ago, "Hannibal Lechter" (Goldman) announces
>in a hurried conference call for clients that they predict
>the gold price will average $275 for 1999. Code for
>that is that the gold price is going up from here as
>it was trading around $254 at the time.
>
>Then the lease rates shoot up, the spreads narrow
>and talk of backwardization (a rare event) is heard. About the
>same time it is widely reported that some of "The Hannibals"
>are running around telling certain producers that if they
>don't hedge, their credit lines will be cut.
>
>Some cowered producers comply and that adds supply to the
>market place which "Hannibal Lechter" is clearly scooping up.
>
>Midas has told the Cafe for two weeks now that "Hannibal
>"Lechter" wants the price of gold to go up, so it will go
>up! The manipulation of the gold market has not changed -
>YET! The fact that GATA can identify that "the gold cartel"
>is allowing to let the gold price go up is just MORE proof
>of what they are doing and have done. Think about it. How
>come I can identify this so easily? This kid is not that
>good an analyst. They are just so obvious. Hello press.
>Wake Up!
>
>The tricky part will be do determine that they have lost
>control of the manipulation process after we get a nice price
>rally here. That will most likely happen when they lose
>control of the situation due to financial market
>liquidity and credit problems. A move above $300 should also
>tell us the "gold collusion game" is history.
>
>The way the bond market is acting, the time might not be
>that far off. Bond yields are now an unthinkable (8 months
>ago) 6.27%. The credit spreads do not narrow. The gold lease
>rates are 3 to 4 times normal. The gold and bond shorts
>are choking a bit.
>
>The gold supply for leasing purposes is contracting and will
>shrink through year end. Gold demand is booming. It would
>not take much from here for the "Hannibal" choking to turn to
>"Hannibal" puking.
>
>Once again - we think the gold loans are 10,000 to 14,000
>tonnes. That amount of gold cannot be covered in a pinch.
>Plain and simple.
>
>It is my GUESS that Goldman Sachs, being the Hannibal of
>Hannibals knows this better than any one in the world and they
>are accumulating physical gold anyway they can. Does any one
>know who bought the 25 tonnes of Bank of England gold that
>was sold at auction?
>
>I could go on an on. The whole matter stinks to high heaven.
>There is much more to get into, but that is enough for now.
>
>It is only a matter of time before the manipulation of the
>gold market is exposed. In the meantime: "Gold has arrived
>at the dance. It's time to party!" There is no reason not
>to expect $500 to $1,000 gold in the years ahead.
>
>For every action, there is a reaction. "Collusion" in the
>gold market has caused this rediculously low gold price.
>The unwinding of the "collusion" will cause the gold price
>to soar to heights that few can envision after all the
>devastion that "Hannibal" and Co. has caused.
>
>On a lighter note - then again, maybe not. The bond
>market was shut down on the Chicago Board of Trade.
>I got a call from a fund manager today who had just
>read David Tice's commentary served this morning
>at the Toulouse-Lautrec Table.
>
>Talk about a timely serving and being on the money:
>
>
>"A troubling example of this huge imbalance is that while
>hundreds of billions are being spent on an absolute
>communications arms race, over the past few weeks tens of
>millions of Americans have had to deal with brown and
>black-outs due to the lack of investment in electrical
>generation capacity. Additionally, the maladjusted US
>economy is skewed increasingly toward the hyper-indulgent
>consumer sector."
>
>David has received rave reviews from the Cafe on this one.
>Don't miss it.
>
>All the best,
>
>Bill Murphy
>Le Patron
>http://www.lemetropolecafe.com
>
>
>
>
>
>
>
>
>
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