You are here
Japan admits receiving Russian gold but says it owes nothing now
By James R. Cook
Investment Rarities Inc.
http://www.investmentrarities.com
April 29, 2004
Almost all the human progress ever made has come because
of the single-mindedness of one lonely individual. They
scorned Henry Ford, ridiculed Edison and Einstein, and
burned Bruno at the stake. (He took the fall for Gallileo.)
A writer recently questioned Ted Butler's credibility because
no other experts could be found to support him. The Silver
Institute dismissed him because he was not a mainstream
analyst. The pathetic drivel that comes from these so-called
silver experts pales in comparison to the original,
ground-breaking insights of Butler.
Thank goodness he is a lonely individual.
The day before the Tuesday, April 13, price break, Butler
conveyed to me in a private conversation that the big boys
would probably smash the silver market soon. No other
good way exists to get out of their outsized short position.
"If it goes up from here, it could be a financial catastrophe,"
he warned. As the big dealers buy back the futures
contracts of the funds and speculators, they reduce their
short position and get the monkey off their back. He claims
that this is incredibly bullish because he doubts they will go
short again to the extent they have in the past. That means
silver will be free to rise based on supply and demand factors
alone.
I give these views a lot of credibility because, on the day
before the price drop, Butler wrote the following commentary
to our brokers. "It looks like we may be starting to get the
long-overdue selloff in silver and gold, because of the lopsided
condition of the COT (Commitment of Traders), where the
dealers are heavily short and the tech funds are long. In fact,
the COT has never been more bearish than it is now in gold,
as we are at, by far, a record dealer short and tech fund long
position. As I recently wrote, my speculation was that the
dealers lured the tech funds into the record gold extreme
to eventually cause a selloff in gold to drag down silver. I say
this knowing full well that silver has been weaker than gold
recently.
"What's important is that if we get a real flushout in both
gold and silver, it will create the Mother Of the Mother of All
Buying Opportunities in Silver. Conditions in the silver
physical market, as well as in the behind-the-scenes
regulatory situation, are reaching critical mass, and this
should be the last opportunity the dealers will have to close
out shorts to the downside. If they are able to cover large
numbers of contracts, it will be the most bullish
development possible. It may get scary to the downside
temporarily, but if this selloff develops, it must be bought.
If I'm wrong, it will be that we don't get the selloff.
"One thing is certain: With or without a sharp selloff, silver
is poised to move sharply and shockingly higher. The
$3+ advance in the past few months is a baby step to
what we will see."
Butler's insights have proven to be far more accurate than
those of any other silver forecaster or analyst. Most other
silver commentary has been negative, arguing vehemently
that silver would go down. I've been in the precious metals
business for 32 years. I've been close to Howard Ruff,
Jerome Smith, Kurt Richebacher, John King, Steve Puetz,
Jay Taylor, and Mark Skousen. I've been friends with Richard
Russell, Gary North, Jim Blanchard, Doug Casey, Jack
Pugsley, Harry Browne, Jim McKeever, Hans Sennholz,
and Murray Rothbard. All have been experts in their areas.
Yet nowhere have I ever come across anyone who lives,
breathes, and understands silver as Butler does. He's way
out in front of anyone else on the subject.
Consequently, I have to give credibility to what he says.
Most importantly, I'm comfortable passing on his viewpoint
to our customers. That's something I considered carefully.
If silver had dropped to $3 as some were suggesting, it
would have damaged my company, perhaps irreparably.
So far, so good.
Butler has been on the money and we look forward to more
of the same. Nobody can be certain about the future and
there are always risks, but we are clearly in the same boat
with Butler and happy to be there.
----------------------------------------------------
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.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.kuik.com/KH/KH.html
(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)
Subscription site:
http://www.lemetropolecafe.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
Centennial Precious Metals
3033 East 1st Ave.
Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
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
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
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.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
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
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
----------------------------------------------------
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 $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
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.
