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5:23p ET Thursday, February 23, 2006
Dear Friend of GATA and Gold:
GATA's story has reached the mainstream news media in
Peru.
A major newspaper in Lima, El Comercio, published last
Sunday a long analysis of the suppression of the gold
price, citing not only GATA but also the studies
published by Sprott Asset Management of Toronto and
Credit Agricole's Cheuvreux brokerage house.
El Comercio's analysis concluded that Peru should
diversity its foreign exchange reserves into gold.
GATA has commissioned an English translation, which
is appended here.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Analysis: The Manipulation of Gold
By Guillermo Arbe
El Comercio
Lima, Peru
Sunday, February 19, 2006
http://www.elcomercioperu.com.pe/EdicionImpresa/Html/2006-02-
19/impEconomia0458592.html
More and more specialists are recognizing that the gold market has
been controlled and manipulated by American and European monetary
authorities for at least a decade.
For a long time this has been an open secret, denied by those very
authorities.
Nevertheless, it is difficult for them to intervene massively in such
a large market without leaving tracks.
The first to point out the evidence was the Gold Anti-Trust Action
(GATA), which has been protesting since 1999. A year ago Sprott Asset
Management, a Canadian mutual fund, publicized a study on the
intervention ("Not Free, Not Fair: The Long-Term Manipulation of the
Gold Price," August 2004).
The most recent report has been by Cheuvreux Investment, a London
investment bank linked to Credit Agricole of France.
This explosive report ("Remonetisation of Gold: Start Hoarding,"
January, 2006) maintains that the United States and Europe have been
suppressing the price of gold through the sale and lending of their
reserves, through many concealed methods. In fact, Cheuvreux repeats
another open secret -- that central banks don't have the gold they
say they have. Out of 31,000 tons registered officially, Cheuvreux
estimates, between 10,000 and 15,000 tons have been leased out. This
gold in reality doesn't exist; it has been sold by the borrowers.
Cheuvreux also estimates also that without the gold supply of the
central banks, there would be a deficit in the market of 1,300 tons.
This equates to 50 percent of world production, an amount impossible
to cover at current prices.
After a decade or more of suppression, the price of gold is like a
compressed resource, ready to jump as soon as the central banks relax
their control. Some think that this loss of control has already
begun. Cheuvreux estimates that the gold price will be between US$600
and US$900 per ounce in the next years, with the possibility of
reaching US$2,000 "or more" if there were a crisis in the United
States.
Why would the central banks want to suppress the price of gold?
There are a series of reasons that all sum up to one: the wish to
eliminate gold's monetary role.
For a central bank, gold is a hindrance. It competes with fiduciary
money and impedes the central banks from having a monopoly over money
and absolute control over monetary politics.
The central banks maintain that gold is a "relic" with disadvantages
compared to fiduciary money, in particular the dollar. But gold has
two advantages: It has a value whether or not more is produced and
its value is not part of the debt of any government.
Fiduciary money, like the dollar, loses value in moments of crisis
and amid deterioration of the confidence in monetary institutions.
Then the monetary role of gold reappears.
It is argued that in the real world, the high debt of the United
States, its massive deficits, inflation, and excessive growth of the
money supply would bring about a resurgence of the monetary role of
gold and its value as a refuge, which could catapult its price even
further in the next five or six years.
The gold market has a considerable macroeconomic importance for Peru
because we are one of gold's major producers. Nonetheless there is no
culture of gold in this country. In times of inflation and crisis,
the refuge is the dollar. Today, with a weak dollar, the refuge would
probably be the euro.
It's difficult to benefit as individuals from a rise in the price of
gold. It's not easy to buy gold in reasonable quantities for small
investors. The majority of the large producers of precious metals --
in South Africa, the United States, Canada, Australia, and Mexico --
mint gold and silver money, and that is the extent to which they
permit common people to save or invest in precious metals. It would
be interesting if the Central Reserve Bank of Peru (BCR) began to
contemplate this possibility.
I have the impression that the politics of the BCR are influenced by
what they perceive other central banks are doing. And what those
other central banks have been doing is selling gold. But this is
changing. Now the central banks are beginning to buy gold,
particularly the central banks separated from the tutelage of the
U.S. Federal Reserve: China, Korea, Argentina, and Russia.
Gold makes up almost 4.4 percent of our reserves in Peru. By
comparison, the world average is 12 percent, and countries like the
United States, Germany, France, and Switzerland have more than 30
percent of their reserves in gold. So maybe it would be wise for the
BCR to line up with the global average. This would be a sensible
diversification at any time but it would be especially reasonable now
amid global monetary uncertainty. If we don't, again we will be far
behind global trends.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
mailto:gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
mailto:gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.DailyReckoning.com/
http://www.silver-investor.com/
http://www.thebulliondesk.com/
http://www.financialsense.com/
http://www.goldismoney.info/index.html/
http://www.moneyfiles.org/
http://www.howestreet.com/
http://www.minersmanual.com/minernews.html/
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html/
http://www.freemarketnews.com/
http://www.investmentrarities.com/
http://www.kereport.com/
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com/
http://www.dollarcollapse.com/
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com/
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
"http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END-
5:09p ET Thursday, February 23, 2006
Dear Friend of GATA and Gold:
GATA's story has reached the mainstream news media in
Peru. A major newspaper in Lima, El Comercio, published
last Sunday a long analysis of the suppression of the gold
price, citing not only GATA but also the studies published
by Sprott Asset Management of Toronto and Credit
Agricole's Cheuvreux brokerage house.
El Comercio's analysis concluded that Peru should
diversity its foreign exchange reserves into gold.
GATA has commissioned an English translation, which is
appended here.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Analysis: The Manipulation of Gold
By Guillermo Arbe
El Comercio
Lima, Peru
Sunday, February 19, 2006
http://www.elcomercioperu.com.pe/EdicionImpresa/Html/2006-02-
19/impEconomia0458592.html
More and more specialists are recognizing that the gold market has
been controlled and manipulated by American and European monetary
authorities for at least a decade.
For a long time this has been an open secret, denied by those very
authorities.
Nevertheless, it is difficult for them to intervene massively in such
a large market without leaving tracks.
The first to point out the evidence was the Gold Anti-Trust Action
(GATA), which has been protesting since 1999. A year ago Sprott Asset
Management, a Canadian mutual fund, publicized a study on the
intervention ("Not Free, Not Fair: The Long-Term Manipulation of the
Gold Price," August 2004).
The most recent report has been by Cheuvreux Investment, a London
investment bank linked to Credit Agricole of France.
This explosive report ("Remonetisation of Gold: Start Hoarding,"
January, 2006) maintains that the United States and Europe have been
suppressing the price of gold through the sale and lending of their
reserves, through many concealed methods. In fact, Cheuvreux repeats
another open secret -- that central banks don't have the gold they
say they have. Out of 31,000 tons registered officially, Cheuvreux
estimates that between 10,000 and 15,000 tons have been leased out.
This gold in reality doesn't exist; it has been sold by the borrowers.
Cheuvreux also estimates also that without the gold supply of the
central banks, there would be a deficit in the market of 1,300 tons.
This equates to 50 percent of world production, an amount impossible
to cover at current prices.
After a decade or more of suppression, the price of gold is like a
compressed resource, ready to jump as soon as the central banks relax
their control. Some think that this loss of control has already
begun. Cheuvreux estimates that the gold price will be between US$600
and US$900 per ounce in the next years, with the possibility of
reaching US$2,000 "or more" if there were a crisis in the United
States.
Why would the central banks want to suppress the price of gold?
There are a series of reasons that all sum up to one: the wish to
eliminate gold's monetary role.
For a central bank, gold is a hindrance. It competes with fiduciary
money and impedes the central banks from having a monopoly over money
and absolute control over monetary politics.
The central banks maintain that gold is a "relic" with disadvantages
compared to fiduciary money, in particular the dollar. But gold has
two advantages: It has a value whether or not more is produced and
its value is not part of the debt of any government.
Fiduciary money, like the dollar, loses value in moments of crisis
and amid deterioration of the confidence in monetary institutions.
Then the monetary role of gold reappears.
It is argued that in the real world, the high debt of the United
States, its massive deficits, inflation, and excessive growth of the
money supply would bring about a resurgence of the monetary role of
gold and its value as a refuge, which could catapult its price even
further in the next five or six years.
The gold market has a considerable macroeconomic importance for Peru
because we are one of gold's major producers. Nonetheless there is no
culture of gold in this country. In times of inflation and crisis,
the refuge is the dollar. Today, with a weak dollar, the refuge would
probably be the euro.
It's difficult to benefit as individuals from a rise in the price of
gold. It's not easy to buy gold in reasonable quantities for small
investors. The majority of the large producers of precious metals --
in South Africa, the United States, Canada, Australia, and Mexico --
mint gold and silver money, and that is the extent to which they
permit common people to save or invest in precious metals. It would
be interesting if the Central Reserve Bank of Peru (BCR) began to
contemplate this possibility.
I have the impression that the politics of the BCR are influenced by
what they perceive other central banks are doing. And what those
other central banks have been doing is selling gold. But this is
changing. Now the central banks are beginning to buy gold,
particularly the central banks separated from the tutelage of the
U.S. Federal Reserve: China, Korea, Argentina, and Russia.
Gold makes up almost 4.4 percent of our reserves in Peru. By
comparison, the world average is 12 percent, and countries like the
United States, Germany, France, and Switzerland have more than 30
percent of their reserves in gold. So maybe it would be wise for the
BCR to line up with the global average. This would be a sensible
diversification at any time but it would be especially reasonable now
amid global monetary uncertainty. If we don't, again we will be far
behind global trends.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
