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Kalgoorlie conference: Barrick production increase, Lassonde''s price prediction
6:34p ET Monday, July 26, 2004
Dear Friend of GATA and Gold:
A loyal friend of GATA wrote today that the gold
community seems to have given up. Discouraged
as many may be about the gold price, we should
recognize the cause and cheer up.
It's not that gold has topped out; far from it.
It's that the strains on the world financial
system and particularly on the U.S. dollar and
the general U.S. equities and bond markets are so
severe that central bank intervention against
gold is greater than ever.
That is not reason to give up; to the contrary,
it is vindication and confidence for the future.
How do we know?
In part from comparing the paper price of gold
with the real price, as gold market analyst John
Brimelow does every day at GATA Chairman Bill
Murphy's proprietary Internet site,
LeMetropoleCafe.com, and as Brimelow did today
for CBSMarketWatch.com.
The real price of gold, Brimelow noted, can be
found in India, the world's biggest gold consumer,
about which he wrote today: "According to the
premiums shown from India, the country has been
hugely a buyer in the international gold market
since gold dropped below $405 early last week."
As for the paper price of gold, the price traded
on the Comex in New York, Brimelow wrote: "Why has
gold gone down so abruptly? To close readers of
the day-to-day Comex data, such as James Turk's
Freemarket Gold & Money Report, the question is
simple: Gold clearly ran into enormous selling
resistance in the $408-$410 area. The simplest
explanation is that this is central bank selling
designed to influence inflation and interest rate
expectations."
That is, central banks are selling gold at a deep
discount to induce people stay within the financial
system they control.
A few conclusions may be drawn from this:
1) Since gold consumption vastly exceeds production,
at some point the central banks will exhaust their
supplies.
2) The gold price is almost entirely a matter of how
much gold the central banks want to dishoard, how
quickly they want to dishoard it, and whether they
will want to keep any for use in the economic order
that will follow the exhaustion of their supplies and
their inability to use gold to manipulate financial
markets.
3) While gold investors may not get rich by Friday,
the central banks still have given them a great gift --
not just a bargain price on gold but a look at the
future, a future of a currency debasement far beyond
the debasement to which the world has grown
accustomed since formal convertibility of currencies
into precious metals was more or less outlawed.
This information isn't a sure thing by Friday. But it
is a sure thing likely to be fulfilled within the
lifetime of most gold investors.
Kitco.com says gold is up almost 8 percent over the
last 12 months, which is better performance than most
other investments. So it shouldn't be too hard to
keep the faith as we continue working for a better,
fairer world.
If you need further cheering, read the latest
commentary by David Bond of Wallace Street Journal
fame, "Write In Ron Paul for President, and Other
Possible Dreams." GATA's charter prevents it from
engaging in partisan politics, but the second part
of Bond's commentary has much interesting and
entertaining information from the great silver
district of Idaho, and if you happen to find Paul
superior to the other presidential candidates being
offered to the American people, that's your business.
GATA surely won't object.
You can find Bond's commentary at 321Gold.com
here:
http://www.321gold.com/editorials/bond/bond072704_wsj.html
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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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
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
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
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
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
----------------------------------------------------
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