The Invisible Hand (1/23/2001; 9:10:14MT - usagold.com msg#: 46222)
BOE auction - a first analysis
This is from Gold-Eagle

How I see it
(Scruffy) Jan 23, 09:49

Well yeaterday I expressed some interest in watching
the BoE auction for a sign. I think the sign is
clear enough.

The auction by policy includes only those who are attempting to buy large amounts of gold for cash.
This has to be a significant factor.

The actual price paid was OVER spot and over the London
morning fix.

These power gold players asked to buy almost 5 times
as much gold as was offered. Let me repeat that another way. Some of the most significant gold players in the world wanted to pay
OVER the going market price for gold, by five times the amount offered!

A few trading days ago TPTB would have us believe that
these folks could have bought all they wanted at $5
less per oz. What is wrong with this picture? Is it
possible that the spot market and the london fix are not honest measures of the real price one must pay if one wanted a significant
amount of gold. If I am buying one gold eagle, $4 - $5 doesn't affect my decision much. If I was going to buy TONS of gold, a few
pennies an ounce would be significant.

So what does all of this mean? I think we all need to determine for ourselves what it means. But predictably
I have my own opinion and I'll share it with you.

FACT: roughly 0.8 Moz sold above spot or fix.

There is still significant demand for actual physical gold. We are told otherwise, but the BoE auction proves that big players take
opportunities to buy physical when it is available.

We are told that there is roughly 1.8 - million ounces of gold available for delivery on the COMEX. The demand
for gold at the auction was 3.8 million ounces! I smell a rat. 3.8 Moz demand at higher prices than the 1.8 Moz advertised as available
on COMEX. There should be 3Moz of unfilled demand and COMEX is offering it at sale prices!! Does this make sense? NO!!!

I said last week that the steady decline in spot was familiar before the recent BoE auctions. I think I am beginning to see why. It is to
get the price down for gold that may REALY be available for delivery. (Or as some suspect, to set the books straight on previous un
reported transactions.)

Why don't those who put in bids at higher than spot just call up COMEX and get more of their order filed?

Last thought. Is the spot or fix prices that we see are a sham? Do they want us to believe that that is the real price? Why is it that we
can buy a few coins or bars at spot + fabrication but the people who want LARGE quantities have to pay more? Don't the big guys
usually get a price break? I have said it before so please forgive me for repeating. The way to screw these folks is to buy the physical
at these prices. I cant do much nor can anyone I know. But if a few thousand of us keep buying one or ten or? oz when we get a
chance eventually we will have a few coins for our trouble and the folks manipulating the game will get squeezed.

BC BN
Scruffy

<center>

<HR>

</center>

ein aufschulßreicher Artikel. So wird auch das letzte Volksvermögen zum Diskontpreis an die Großkopferten verscheuert, das Volk soll doch gefälligst Aktien zu Höchstpreisen (von den Großkpoferten) kaufen.

Die fetten Ratten verlassen das sinkende Schiff.
Gruß
Diogenes

<center>

<HR>

</center>

>ein aufschulßreicher Artikel. So wird auch das letzte Volksvermögen zum Diskontpreis an die Großkopferten verscheuert, das Volk soll doch gefälligst Aktien zu Höchstpreisen (von den Großkpoferten) kaufen.
>Die fetten Ratten verlassen das sinkende Schiff.
>Gruß
>Diogenes
Tagchen bei Nacht

Na das Volk ist vielleicht doch nicht ganz dumm, es könnte Goldaktien kaufen. Man hat mehr Zeit etwas auszusitzen. Wäre eine Idee.
Oder es kauft Goldmünzen. Na die Banken raten fleißig ab. Immer wenn große Institutionen zu was raten dann entscheide dich dazu das Gegenteil zutun.
Ich habe ein Gewinnspiel in meinem Lokal veranstalltet. Der ERSTE PREIS WAR 1/10 unze Krügerrand. So kamen 8 Münzen unters Volk. Es wurde bis jetzt keine einzige bei der Bank eingetauscht. Der Glanz des Goldes ist nicht ganz verblasst. Die Augen der Gewinner leuchteten beim überreichen der Münzen.
Gruß Odin


Gruß Odin

<center>

<HR>

</center>