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GATA plans presentation at Vancouver conference June 12 and 13
Intervention against Gold Rising Sharply,
GATA Says, Citing New Derivatives Report
GATA press release
via Business Wire
Monday, May 23, 2005
http://home.businesswire.com/portal/site/google/index.jsp?
ndmViewId=news_view&newsId=20050523005408&newsLang=en
DALLAS -- Government intervention against the gold price has risen
sharply since the middle of last year, the Gold Anti-Trust Action
Committee reported today.
The increase in intervention, GATA said, was disclosed last week in
the Bank for International Settlements' semi-annual report on the
issuance of derivatives by major banks and dealers in G-10
countries. The report was studied by GATA's consultants -- James
Turk, founder of GoldMoney and editor of the Freemarket Gold & Money
Report; Michael Bolser, editor of the Interventional Analysis
newsletter; and Reginald H. Howe, gold market analyst and principal
of Golden Sextant Advisers.
The new derivatives numbers from the BIS are "stunning" in regard to
gold, Turk said, summarizing GATA's research. "In major banks and
dealers in the G-10 countries, the total notional value of gold
derivatives rose from $318 billion at mid-year 2004 to $369 billion
at year-end.
"That $51 billion increase -- a 32-percent annual rate of growth --
occurred while gold miners were reducing their hedge positions.
"The reduction in hedge positions by mining companies should have
resulted in a decrease in the aggregate position in the BIS report.
That it didn't happen suggests that the international economist
Frank Veneroso is right. Here's what Veneroso had to say in the
March issue of Gold Newsletter:
There is only one possible explanation for why purchases of
thousands of tonnes of gold in the futures and forwards markets do
not blow the price of gold sky-high: The official sector must step
in on gold price rallies as an offsetting forward seller.
How much more gold can governments dishoard to throw at the gold
market to keep the price down?
"The answer," Turk says, "is of course unknowable, both to us as
well as to the governments intervening in the gold market. At some
point the banks executing the government positions are going to
reach the tipping point, when the free-market demand for gold
overwhelms government price capping. I think that moment is near for
one important reason.
"Price capping in gold can be prolonged only by continually
supplying the market with physical metal. Right now the demand for
physical metal is strong. So governments can sell all the paper
derivatives they want, but it isn't going to stop people from buying
metal. In fact, the low price of gold resulting from government
price capping is causing the demand for physical gold to increase."
GATA's findings on the latest BIS gold derivatives report can be
found on the Internet here:
http://www.goldensextant.com/Charts.html
GATA Chairman Bill Murphy said this new evidence of government
intervention against the gold price should compel mining companies
to be represented at GATA's Gold Rush 21 conference in Dawson City,
Yukon, Canada, on August 8 and 9.
"Gold Rush 21 will hear presentations from gold and silver market
experts from around the world," Murphy said, "and will develop a
plan of action to restore free markets to the precious metals."
Information on Gold Rush 21 can be found on the Internet here:
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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.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
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
3033 East First Ave., Suite 807
Denver, Colorado 80206
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
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
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