-->July 29 - Gold $429.50 up $2.70 - Silver $7.22 up 6 cents
The"Perfect" Bullish Gold/Silver Scenario Is Playing Out
We should never despair.... If new difficulties arise, we must only put forth new Exertions and proportion our Efforts to the exigency of the times." --George Washington
Another fascinating trading day. The US economic news out this morning was generally positive and it produced some weird results at first. The bond market didn’t like what it saw at all and interest rates took off. The long bond closed down 1 to 115 3/8, reversing yesterday’s strange advance. In light of these higher rates, new high ground for the move, one might have logically concluded the dollar would go higher as a result.
Nope. The dollar did rise, but only briefly. It fell as much as it rose at one point, closing little changed. The euro and yen were weaker. However, the pound and Canadian dollar were firm.
The US stock market, on a tear of late, didn’t like the idea of higher interest rates and began to head south. Like the dollar, it was all over the place and came right back before falling late in the afternoon and making new lows for the day.
Gold firmed right up after the usual early dip, and then when the dollar firmed up after the US economic news was released, it refused to back off. Later when the dollar rose abruptly, only to fall just as abruptly, before rising again, gold barely blinked. As a result, the euro gold price went up nicely to 353.89.
The gold open interest change is a whopper. The OI fell 7202 contracts to 247,514. This is astonishing. Why:
*It will give you some idea of the kind of short-covering done by The Gold Cartel the past couple of weeks.
*It means the heinous cabal was successful in turning a number of the funds into taking on short positions near the bottom. Those shorts are running for the hills.
*It means 120,000+ new spec longs can enter the fray before the gold open interest makes new highs (John Brimelow nails the importance of this in his commentary below).
That we are at $430 gold with such a low open interest is extremely bullish - especially when one takes into account the price of oil, copper and the CRB in general. Despite falling grain prices, the CRB gained 1.47 to 312.
The picture perfect bullish scenario for gold and silver just became more so.
Speaking of picture perfect - GATA love these charts:
August gold has put in a rounding, double bottom:
August gold
http://futures.tradingcharts.com/chart/GD/85
The COT report showed the funds reducing their net long position by another 6,000 contracts. Small specs went more long by nearly 4,000 contracts and the so-called commercials reduced their net short position by 2,000 contracts.
September silver has put in a quadruple bottom and has put in a massive base to support a price move to much higher levels.
September silver
http://futures.tradingcharts.com/chart/SV/95
What ought to have all Café gold and silver investors on the excited side is that so few in the investment world have any interest as far as the precious metals are concerned. The gold excitement meter has no pulse at all. Even more interesting is that so many long-standing gold/silver investors have given up. They are no longer paying attention. This is just the way most major bull moves get under way. Gold will have to take out $460 to bring many of these investors back to the party and then they are going to have to pay up to play - to get back in the game.
A Canadian gold producer is getting numerous requests for immediate shipment of spot gold. This is a real veteran who is telling our sources this is a rarity to see the buyers this aggressive and needy. It fits in perfectly with the J Brimelow analysis of a shortage of physical gold lurking in August and September to meet current demand.
Silver acted well all session long and seems ready to make a leap higher. The silver open interest rose 187 contracts to 123,723.
Crude oil closed at $60.57 per barrel, up 63 cents. It is not far from all-time highs:
September crude oil
http://futures.tradingcharts.com/chart/CO/95
The John Brimelow Report
Bears at risk to Specs
Friday, July 29, 2005
Indian ex-duty premiums: AM 36c, PM $3.94, with world gold at $427.70 and $427.30. Too narrow, and ample, for legal imports. Bombay reopened today and morning conditions were confused, but taking the unaffected reporting cities into account it seems clear India, the world’s largest importer, is a willing buyer from the world market at these prices. The Bombay stock market closed at yet another record high.
TOCOM is a moderately willing seller. On volume up 48% to equal 12,975 Comex lots, open interest dropped the equivalent of 1,676 Comex (5.2 tonnes) to equal 91,531 NY contracts. The active contract rose 5 yen to a one -month high but world gold was static - up 10c on the NY close. Mitsubishi’s data suggests the public liquidated 5 tonnes of their long, taking it to 78.3 tonnes. If world gold pushes higher, further Japanese liquidation will probably dampen down the early Asian day.
Thursday in NY, beneath the surface, was a remarkable day. On volume of 119,645 contacts (79,200 net of the switch effect) open interest fell 7,902 lots (25.6 tonnes). It appears UBS was the most accurate commentator:
"Technically-related buying saw gold take out the first resistance at $426/oz and once this was cleared, medium sized stop-loss buy orders were triggered… the market remained orderly throughout and intraday players were content to sell their longs into the final wave of stop-loss buying seen at $429/oz"
Manifestly there was short covering on a considerable scale, which underlines the size of the Bear raid gold withstood earlier this month. It has not recently been common to see short interest contract so much on a rise.
Open interest has dropped 20,912 lots (65 tonnes) in a week, with gold rising $7.60. At 247,514 contracts, it is now the lowest it has been since September 10 last year, when gold closed at $402.30 and began the Fall surge to $450.50. The peak open interest subsequently was 370,786 on November 22 - 383 tonnes of buying!
On the face of it, the Bears are going into the phase of maximum physical market strength with the Comex spec community unusually disengaged. They are going to need City Hall.
JB
CARTEL CAPITULATION WATCH
The DOW fell 65 to 10,641 and the DOG gave up 14 to 2185.
Planet Wall Street has had the upper hand of late over the Planet GATA camp. Not today. Odds are high the tide is turning. Same commentary drill from me. The employment news is not encouraging and inflation is far higher than Planet Wall Street and Washington are willing to acknowledge.
Two bellwether stocks, GE and Citigroup, continue to stink up the place:
GE ($34.51, down 37 cents) and C ($43.50, down 36 cents)
http://new.stockwatch.com/swnet/utilit/utilit_snapsh_result.aspx
Talk about stinko charts! If all is so hunky-dory as those on Planet Wall Street proclaim, why are these two key stocks trading so horribly? Something is not right. We ought to find out what that is in the months to come.
The US economic news:
08:30 Q2 ECI reported 0.7% vs. consensus 0.8%
Prior 0.7%.
* * * * *
08:30 Q2 GDP reported 3.4% vs. consensus 3.5%; Personal Consumption 3.3% vs. consensus 3.5%
GDP price index reported 2.4% vs. consensus 2.6%. Prior Consumption revised to 3.5% from 3.6%. Prior Price Index revised to 3.1% from prior 2.9%.
* * * * *
09:01 July New York NAPM current index reported 61.7% vs. 42.8% in June
Prices paid 58 vs. 50 in June.
* * * * *
09:58 Chicago PMI 63.5% in July vs 55.0% consensus - Bloomberg, Reuters
June was 53.6%.
* * * * *
The King Report
M. Ramsey King Securities, Inc.
Friday July 29, 2005 - Issue 3207"Independent View of the News"
Before we leave, we want to alert our readers to a possible huge surprise in the July employment report that is scheduled for release next Friday, August 5.
As we mentioned a few weeks ago, July is one of only two months in which the BLS’s Net Business Birth/Death Model deletes jobs (January is the other.) The below tables from the BLS web site show that last July, 80,000 jobs were deleted. It was initially 84,000 jobs deleted, but it has been revised.
Last month the B/D Model added 184,000 jobs. Ergo, July’s gross CES (establishment survey) jobs, before seasonal adjusting, might be minus 264,000 jobs from June due to the B/D Model…
Permabulls and Street economists that have ignored or were not aware of the B/D Model have constantly downplayed its role in job creation. However, the B/D Model jobs have the same weight and accounting as jobs created by, say IBM or GM. The BLS’s CES totals jobs from all its categories, including the B/D model, and then that gross number is seasonally adjusted."That’s the fact, Jack!"
Okay, what about recent job creation ex-the BLS’s B/D Model? Not good - even permabulls admit job growth is sluggish. However, as we’ve noted, over the past several weeks corporations have announced an increasing amount of job cuts.
Grant Noble notes,"Yesterday Challenger, Gray & Christmas noted the heavy layoffs of the last two months that has appeared to accelerate in July."We may have reached the tipping point for this period of lackluster economic expansion," said John Challenger…He said the forces slowing the U.S. economy — rising energy prices, health care costs, interest rates and tougher global competition — are leading to layoffs at a number of"once-dominant" U.S. companies."If the summer surge proves to be the first sign of an eventual economic slowdown, this would be among the weakest expansions in recent times, particularly when compared to the boom of the 1990s.’" gnoble@sbcglobal.net
The above chart is from Jim Bianco’s daily letter. www.biancoresearch.com
The Challenger Gray data shows that the recent jump in layoff announcements is similar to the ‘tone change’ that occurred in July 2000. A surge of layoff announcements and actual job cuts ensued.
Please note that the peak of announced job layoffs occurred almost commensurately with the trough of the burst-bubble mini-recession that occurred in the first half of 2001. The dramatic decline in announced job layoffs to start 2002 presaged the economic upturn.
Bill Gross has penned a great piece that notes,"My ultimate point is that nominal GDP growth is the North Star for wealth creation adjusted for a changing of the shares claimed by labor, government, and capital. If, as I expect, that is to be 5% or less in a future economy, then average asset returns will be 5% or less, pre-tax. Investors that earn more will have to take risk by bullying and kicking sand in the faces of wimpy short-term cash holders. That of course carries risks of its own, but absent Armageddon even the levered bullies should expect no more than 6-7% going forward. Use this common sense CAPM to purchase bonds, common stocks, or second or third homes if you dare (no more homes for me, thank you.)…" Note: This is the last paragraph in the piece
Years ago, Lacy Hunt educated us on the benefit of utilizing nominal economic data in research - it avoids the hokey CPI created, massaged and fabricated by government.
Bill Gross:"I’ve learned more about the Capital Asset Pricing Model (CAPM) by collecting stamps than I ever learned at business school…What I’ve found by collecting stamps - and this is where it merges somewhat with CAPM - is that high quality stamps appreciate (with considerable volatility) with nominal GDP growth or the annual growth in national income…Over a period of 70-80 years, rare classic U.S. stamps have appreciated at the same rate as nominal GDP…Learned experts frequently have used abbreviated histories of asset returns or even extended histories containing P/E multiple expansions to justify high expectations for certain asset returns. Bond, stock, and now real estate performance has been subject to such fallacious reasoning, riding the tail of declining yields in many cases to justify high flying expectations when in fact similar interest rate declines are mathematically impossible…
Similarly, I believe that if nominal GDP goes up X % over the next 10 years, then overall asset prices (The Bill Gross CAPM) will probably return X% assuming unchanged percentage interests of government, labor, and capital for the same time period. With so many complicating variables, why bother you might ask? Well it helps me to put things in perspective and hopefully it’ll help you too. If nominal GDP only increases at 5% a year over the next 10 years (my maximum expectation) then asset returns as a whole should be capped at that level as well."
http://www.pimco.com/LeftNav/Late+Breaking+Commentary/IO/2005/IO+August+2005.htm..
Jim Bianco highlights this story: The Kansas City Star in The core rate of frustration notes,"No matter what the government says, de facto inflation is gnawing at consumers.
"Zero. Zilch. Zip. That’s the current rate of inflation in the United States, as clocked monthly by the government’s two most widely watched inflation gauges: the consumer price index and the producer price index. But it’s not what consumers feel. They know — as they shell out more money for food, fuel and other everyday expenses — that real-life inflation is happening no matter what the official statistics say. And for many households, that means pinching pennies and finding creative ways to conserve cash."
http://www.kansascity.com/mld/kansascity/12191914.htm
-END-
Value News China's gold demand predicted to rise 20% 12:18:52
GMT, 28 July, 2005 The head of the Dhangai Gold Exchange has reportedly called on China to increase it gold reserves.
Shen Xiangrong, chairman of the Shanghai Gold Exchange board, told Dow Jones Newswires that increasing reserves would lower the country's foreign exchange risk.
"I suggest that China should diversify its national reserves to different types of low-risk products such as gold and oil in the longer term," Mr Shen said.
Speaking after the revaluation of the yuan last week, the gold expert said that there was a growing risk of a drop in the value of China's foreign exchange reserves. The People's Bank of China dropped the yuan's valuation against the US dollar in favour of a managed float against an unspecified basket of currencies.
Mr Shen forecast that China's gold consumption would rise by 20 per cent to around 12.86 million troy ounces this year, as demand from jewellery makers and manufacturers flourishes. He added that the revaluation could also provide a major
boost for gold trading and said he hoped that the gold exchange would be opened up to foreign investment within the next five years.
The Chinese central bank reports that the country's gold reserves were at 19.290 million troy ounces by the end of June, unchanged from the end of last year, while foreign exchange reserves rose to a record $711 billion over the half-year, up 16.6 per cent from the end of last year.
-END-
Switzerland and their gold:
Bill
Extracts from the pdf report of 29.07.05 below
Increase in value of gold by 2.7 Bill Swiss Francs (net results from changes in market value)
Interest from gold lending transactions 20.0 mill Swiss Francs
Net result from hedging - 16.7 million Swiss Francs
Comment. IMHO they are putting a positive spin on these results, whereas the reality is quite different..
There is no comment to the fact that if they had not sold off 50% or 1300 Tonnes of the original 2600 Tonnes, they would theoretically have made up to double the increase in value to 5.4 billion CHF. (This calculation is perhaps too simplistic given that the gold sales took place at regular intervals over a longer period, but is just made to show the principle of their bad decision to sell gold.)
If their gold sales had not taken place, one can imagine the gold price would be much higher today, so they have in fact lost out twice by their sales policy.
END
http://www.snb.ch/e/aktuelles/pressemit/pre_050729.pdf
Extracts
"Interim results and balance sheet of the Swiss National Bank as at 30 June 2005
The first half of 2005 yielded extremely positive results for the National Bank - the gold price and US dollar increased substantially, while interest rates declined slightly. This accumulation of favourable market developments led to unusually high valuation gains on foreign currency investments and gold holdings. The distributable profit amounted to CHF 6.7 billion, compared with a loss of CHF 0.9 billion in the first half of 2004. Given that the SNB’s financial result is strongly affected by market conditions, the interim figures do not permit any conclusions to be drawn with respect to the 2005 annual result.
The gold price and the US dollar both climbed by 13% in the first half of 2005. The exchange rates of all other investment currencies also moved up. Meanwhile, interest rates in all SNB-relevant investment markets dropped slightly, with a particularly sharp decline in euro interest rates.
The increase in the gold price in the first six months of the year led to valuation gains on gold amounting to CHF 2.7 billion, compared with a loss of roughly CHF 0.9 billion in the year-back period. Current interest earnings on foreign currency investments came to CHF 1.1 billion (CHF 1.2 billion). The SNB also posted capital gains of CHF 0.7 billion (CHF -0.5 billion) and exchange rate gains totalling CHF 2.2 billion (CHF -0.2 billion). Together with other income and expenses, the interim result came to CHF 7.1 billion (CHF -0.4 billion) - before the legally prescribed increase in provisions."
"Item no. 1: Net result from gold
Breakdown by typeQ1-Q2 2005Q1-Q2 2004ChangeCHF millionsCHF millionsCHF millions
Net result from changes in market value2 702.0- 946.4+3 648.4
Interest income from gold lending transactions 20.0 15.6+ 4.4
Net result from hedging transactions- 16.7- 60.9+ 44.2
Total2 705.3- 991.7+3 697.0 release
The extraordinary increase in the gold price of roughly CHF 2,100 per kilogram in the first half of 2005 led to very high valuation gains. This contrasts with the same period in 2004, when the value of gold dropped slightly."
END
Best
Alan
More from Alan:
Bill
http://www.swissinfo.org/sen/swissi...tml?siteSect=106&sid=5510759
The proceeds from the sale of 1,300 tons of surplus gold in Switzerland are to be divided among the federal government and the cantons.
The cabinet announced the decision on Wednesday, ending an eight-year debate over what to do with the Swiss National Bank’s excess.
END
Comment: This"old news" is getting aired again today along side the SNB results, which I emailed you separately.
No doubt the authorities are trying to keep the swiss taxpayers happy, and prevent them from thinking too deeply about the real deal behind the gold sales.
The first of the key facts below is misleading although true.
The Swiss electorate voted for a new constitution. How many of the voters were aware at the time of the vote that the gold clause linking the Swiss Franc to gold had been removed from the new constitution is a matter of conjecture, but I would venture a very low % age.
Best
Alan
A veteran Café member pointed out to me that I misquoted Barclays Capital Mr Kamal Naqvi yesterday. From the article:
"Total physical supply of gold in 2005 is forecast 3.5 per cent higher at 3,900 tonnes (3,770 tonnes), while total demand is placed 2.4 per cent higher at 3,490 tonnes (3,409 tonnes)."
My comment was:
"That one blows me away it is so bad, when it comes to Barclay’s projected 2005 supply/demand deficit. They have it at 410 tonnes. Even JP Morgan Chase projects it to be 750 tonnes. Via the work of Frank Veneroso, GATA has it at more than 1500 tonnes. The difference between the estimates is all the Gold Cartel central bank gold clandestinely fed into the market to suppress the price."
Naqvi has supply/demand deficit as a surplus 410 tonnes, not a deficit. That number is SO off the wall, it wouldn’t even register in my brain. That sort of prediction from this snotty sycophant of The Gold Cartel is beyond ludicrous. However, it is important to point out because this nonsense is what investors are paying attention to. It is this sort of mainstream gold world garbage we intend to counteract at Gold Rush 21.
Disinformation such as this Barclays garbage ought to make it clear why I don’t trust their upcoming Silver ETF - pretty much the same reason why I don’t trust the World Gold Council’s ETF. Both of these organizations continually deceive the public and precious metals world regarding the true gold supply/demand situation.
John Brimelow just told me that Naqvi, the only one I know of who does it this way, counts central bank selling in his supply/demand numbers. OK, 500 tonnes of CB selling under the Washington Agreement allowance still brings this number back up to only a 90 tonne deficit calculating it the traditional way. Absolutely ludicrous.
Rhody on the lease rates:
Good morning Bill:
Gold is back in incipient backwardation, but there is little change here over the past few days. The lease rate curve still displays a flattened distribution that tells me that leasing continues at high rates, even though rates are"low".
Last year, rates in the one month were about.06% and each subsequent term adds.02%, culminating in a.20% for the one year term. We now have one month rates at.11% and that's the same as the two month term rate. So there is.02% worth of extra demand for gold in the one month term. I wish there was some way to translate a lease rate into a gold volume hitting the spot market.
Silver is doing little these days but is safely out of backwardation. Silver rates are three to eleven times the rates for gold. Although some people would say this reflects the scarcity of silver over gold in above ground stocks, I think it reflects an absorption of price rises into lease rates that should have gone to physical metal prices. After, all one month silver lease rates are.3% and there is serious risk of default here. About the only analogy I can think of that illustrates the absurdity of these rates is the antique furniture leasing rates.
Movie makers lease period furniture by the day and give 1% of the replacement value per day to the owner. The movie producer pays for insurance and all other costs. That's 1 percent per day on a piece of furniture that might be worth $100,000. So this is not chicken scratchings. But here the risk is low and the lease rate is still 90 times the effective one month silver lease rate.
There is something very, very strange about the precious metal lease markets.
Platinum lease rates are moving away from backwardation courtesy of a moderate rise in the later term rates, while palladium rose.10% across the board. I must admit that with yesterday's near term decline in palladium rates, I thought the tightness in palladium was related to delivery obligations for futures, but Monday will tell. There is still near term backwardation in palladium out to the three month term.
Regards, Rhody
http://www.kitco.com/market/lfrate.html
A point of view from the bleachers:
Hi Bill,
First congrats on CBC attending Goldrush 21.
That is HUGE. You’ve hit a number of triples now including Silver Standard and Agnico Eagle attendance.
Second, you commented about the 10 year note rising today while the USD fell and gold strengthened. You mentioned it does not make sense.
To that I say, exactly. The game of the Fed / Working Group on Financial Markets is to obscure trends to delay the inevitable.
On a day when the USD slides, gold gains strength despite their best efforts yet the gold shares barely respond, while the DOW and Nasdaq markets strengthen.
If it becomes clear the USD is sliding, gold, gold shares and oil rise and Treasuries drop at the same time, then the story is fairly clear and traders understand the trend and take positions on one side in many investments to benefit.
This way, given the confused signal, nobody is quite sure what the overall trend is and managing the markets is that much easier.
All the best,
Dave
More from the bleachers:
Dear Bill,
Gold Rush 21 must be working, because the metals are showing some spunk. Whatever you guys are doing up there in the Yukon, keep doing it! You've been talking a lot about all these gold sales by ECB countries, et. al. Who the heck is buying all of this gold? Why is it that the seller is always identified, but never the buyer? Also, I am sending you a monthly chart of FNM. There is a massive head and shoulders which broke in February, like a massive tsunami crashing to earth. The downside objective is around $25. Interesting to see it so weak the last few days, having completed another smaller scale head and shoulders top. Jim Sinclair would love the fractal nature of these patterns within patterns. All the best to you and the other generals on the front lines...
http://bigcharts.marketwatch.com/in...asp?symb=fnm&time=&freq=
Sincerely,
Pete V
Malibu, CA
Malibu Pete might just be right, or GATA has run into one coincidence after another over the years. Reg Howe and I spoke years ago at a mining analyst conference in London years ago when the price was around $300 and change. After the luncheon was over, gold popped $6 out of nowhere. There have been a number of such instances like that over the years.
One occurred soon after the GATA African Gold Summit in Durban, South Africa on May 10, 2001. From my MIDAS commentary a week later; the last time gold rallied worth a darn and before The Gold Cartel’s $6 Rule came into play:
May 18 - Gold $286.50 up $12.65 - Silver $4.55 up 8 cents
What A Day - Gold up $12.65 - Jacks for Openers - GATA Story Spreading
The dollar remains firm above 116 and the stock market could not be much stronger than it has been the past weeks. As I said in yesterday's Midas, forget all that; gold will make the big move because of the gold internals, not external forces.
Today, was a perfect example. And, if I am right, this is only the"jacks for openers" as in a poker game. The gold price has exploded ever since the Dow Jones story appeared on the eve of the GATA African Gold Summit. Adam Aljewicz's Dow Jones wire story was picked up all over the world and gold rallied $5 that day.
I was informed by senior Comex traders after the close that today that it was the dealers who were the big buyers, not the funds. Word is spreading all over the investment world about GATA and the Howe Complaint. A very well known fund manager called up some hot-shot financial man today and asked him why gold was so strong. The answer back to him was:"the lawsuit."
What is happening is that the exposure that GATA received at the summit, on the South Africa Broadcasting Company and in the Parliament in South Africa is taking hold. Word is spreading that GATA is right. Word is spreading about the enormous short gold position which cannot be covered - that Frank Veneroso's gold loan numbers of 10,000 to 16,000 tonnes are the correct ones - not the rigged, inept 5,000 tonne number of the bullion dealer lackey group, GFMS.
A South African sent me the following last nite:
Hi,
Seems like the message is definitely out!!!!!! The trip to Durban must have been worth-while!!! Thanks.
Keep up the good work.
P.S. On Business Brief tonight (TV 3, SABC) some very smart analyst said that the recent (last two weeks) increase in the gold price can be attributable to short sellers trying to cover their positions. Anyway, what he said was, in effect, that the gold price has been low because of these shorts!!!!
Do I have it right!!!! Not sure, but again it was TV exposure - from another source, basically confirming what you have been saying all the time.
Maybe your representative in Durban could get more info from SABC - that is if you would like to know more!!!!
Keep up the fight, and in real X-File style,"The Truth Is Out There!!!!"
J.Loots
I know of at least one case in which the GATA Action Plan put forth at the Durban summit has already been set in motion. As I told the attendees at the summit and in other private meetings, The Gold Cartel will not be able to answer these questions truthfully without exposing the fact that GATA's assertions are correct. Therefore, they will not answer them or, if they do, you will know GATA is right.
The serious question process at government levels is JUST beginning to happen in sub-Saharan Africa. Just as importantly, because of the exposure GATA received in Durban, awareness of the gold scandal is growing, The Gold Cartel knows that they cannot stand the spotlight because we have the goods on them. The dealers must sense that the game is ending and many want out.
-END-
$12.65 in a day! Now if we get anything like that before, or after, Gold Rush 21, it’s all over for the bums. When the $6 Rule goes down, The Gold Cartel goes down - at least until the price takes out $500 per ounce.
Chris Powell put out this missive last evening regarding Barrick Gold:
9:27p ET Thursday, July 28, 2005
Dear Friend of GATA and Gold:
From Barrick Gold's second quarter report, issued
today:
"Production and costs: In second quarter 2005, Barrick produced 1.2 million ounces of gold and sold 1.1 million ounces at a total cash cost of $243 per ounce, compared to 1.3 million ounces produced and 1.2 million ounces sold at a total cash cost of
$209 per ounce for the prior-year quarter."
While Barrick is getting $243 per ounce for its gold, spot gold today closed above $427.
"Gold hedge position update: Barrick reduced its gold hedge commitments by a further 200,000 ounces in the quarter, bringing the Corporate Gold Sales Contracts position down to 6.6 million committed ounces, or 9 percent of year-end reserves excluding Pascua-Lama."
That is, at the current rate Barrick will be able to close its hedge book in... another eight years.
You can find Barrick's second quarter report here:
http://biz.yahoo.com/bw/050728/285994.html?.v=1
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Please see Matisse Table:
Support GATA, Make A Bid For Agnico-Eagle Gold Bar
AGNICO-EAGLE is going to individually auction ten of these gorgeous one ounce wafer bars at Gold Rush 21 in Dawson City, Yukon Territory, on August 8th. Proceeds will go to the Gold Anti-Trust Action Committee to carry on our fight to expose The Gold Cartel and free the gold market.
http://www.lemetropolecafe.com/mati...mp;cftoken=63626967&pid=4153
Will be sending out an announcement later.
The gold shares continue to trade abysmally. There is no interest. The XAU sank.20 to 90.77. The HUI lost.39 to 196.77. Was today’s lousy share action a tip-off of yet another Gold Cartel raid on Monday? The HUI itself has a lousy rounded top formation and is very vulnerable technically.
HUI
http://bigcharts.marketwatch.com/qu...o_symb=hui&freq=1&time=8
At the same time the technical situation for both gold and silver could not be more bullish. August ought to be a banner month for our camp. With a break here and there, the prices of gold and silver could move up very quickly and be staring at multi-decade highs before the investment world wakes up to what is going on.
GATA BE IN IT TO WIN IT!
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