Gold selloff driven by central banks, not investors


It was all just another market-rigging operation, but it came at a huge price. Now ALMOST EVERYBODY is starting to understand it.

* * *

Bank of France Blamed
for Big Selloff in Gold

By Ambrose Evans-Pritchard
The Telegraph, London
Thursday, October 5, 2006

Central banks may have dumped far more gold on the markets over the last three weeks than officially reported, accounting for the sudden plunge in prices that has stunned investors.

Barrick switches from hedging gold to hedging copper


From Reuters
Thursday, October 5, 2006

TORONTO -- Barrick Gold Corp.'s $1 billion copper-linked debt financing is a cheap way for the world's biggest gold producer to get cash to fund projects, one analyst said on Thursday.

Barrick is selling $1 billion in notes, consisting of $400 million of 5.75 percent notes due 2016 and $600 million of 6.35 percent notes due 2036.

Refusing to sell gold in 2007, Bundesbank offers its quota to other central banks


By Christian Vits
Dow Jones Newswires
Thursday, October 5, 2006

FRANKFURT -- Germany's Bundesbank doesn't intend to sell gold reserves during the next 12 months except some sales for coinage, it said Thursday.

According to the European Central Bank's Gold Sales Agreement, the Bundesbank can sell up to 120 metric tons of gold a year until 2009. The third year of the agreement started Sept. 27. Since the beginning of the agreement the Bundesbank has refused to sell larger amounts of its gold reserves.

Barclays suspects sneaky accounting of recent central bank gold sales


European Central Banks
May Have Sold Full Quota
of Gold, Barclays Says

By Claire Black
Thursday, October 5, 2006

LONDON -- Barclays Capital said on Thursday it believed that Europe's central banks sold the full 500 tonnes of gold in the second year of an agreement that regulates bullion sales.

Just how much gold did central banks really sell?


They're less than clear, which is how they would want it as manipulators of the currency markets.

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Bundesbank Boosts Sentiment for Gold Market

By Chris Flood
Financial Times, London
Thursday, October 5, 2006,_i_rssPage=...

Germany's Bundesbank said on Thursday that it does not plan to sell any gold from its reserves for a third year, giving a significant boost to sentiment in the gold market after recent sharp falls in prices.

Once in Morgan's hands, Amaranth's losing trades became winners overnight


How the Wreck
From Amaranth
Was Contained

J.P. Morgan and Citadel
Swooped In, Assumed Risk,
Proving Markets' Resilience

* * *

By Gregory Zuckerman
The Wall Street Journal
Thursday, October 5, 2006

As Amaranth Advisors scrambled to unload its sinking energy investments last month, here is what potential bidders saw:

There were thousands of complicated contracts at the Connecticut hedge fund to buy and sell natural gas, power generation and oil in increasingly jittery markets across the globe. Though some were regulated by futures exchanges, others were one-on-one deals with two dozen or so banks and other investors. Some were in markets with relatively few buyers and sellers, making them vulnerable to big price moves.

The money isn't as good as the coffee anymore


5:36p ET Wednesday, October 4, 2006

Dear Friend of GATA and Gold:

Who says there's no inflation?

Maybe only Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson. Certainly not the makers of Chock Full of Nuts coffee, whose jingle used to proclaim, "Better coffee a millionaire's money can't buy."

But those were the old days ... like a few months ago. The coffee company has updated its advertising to fit the age of infinite money. Now the company sings of its product, "Better coffee a BILLIONAIRE'S money can't buy."

Europe's central banks sell less gold than target


So where did all the metal dumped over the last week come from? Would you happen to know, Secretary Paulsen?

* * *

From Reuters
Wednesday, October 4, 2006

LONDON -- Europe's central banks sold just 393 tonnes of gold against the full quota of 500 tonnes in the second year of an agreement that regulates bullion sales, precious metals consultancy GFMS Ltd said on Wednesday.

Turk interviewed on strange selloff; new Grandich Letter


11a ET Wednesday, October 4, 2006

Dear Friend of GATA and Gold:

GoldMoney's James Turk, editor of the Freemarket Gold and Money Report and consultant to GATA, is interviewed by Resource Investor's Jon A. Nones about gold's strange selloff on news of North Korea's plan to begin nuclear testing. You can find the interview here:

And in his latest letter, Peter Grandich argues that nothing about the fundamentals of the precious metals has changed, even as there is likely to be a lot of tax-loss selling of mining shares. You can find the new issue of the Grandich Letter here:

Michael Nystrom: The Dow's phony new high


11:57p ET Tuesday, October 3, 2006

Dear Friend of GATA and Gold:

In a new essay market analyst Michael Nystrom elaborates wonderfully on a point made earlier today on ROB-TV by Jeffrey Saut of Raymond James Associates. Nystrom shows how the new high recorded today by the Dow Jones Industrial Average is more than misleading; it is active disinformation. Nystrom's essay is headlined "The Dow's Phony New High" and you can find it at Nystrom's Internet site,, here: