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Reuters notes GATA statement on gold price capping by European central banks
11:14a ET Thursday, July 7, 2005
Dear Friend of GATA and Gold:
Here's a press release GATA distributed internationally
today to document the gold price-capping efforts of
European central banks. Please copy it to news
organizations in your area.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
European Central Bank Gold Sales
Repeatedly Cap Price Around $440
GATA press release
via Business Wire
Thursday, July 7, 2005
The price of gold has been capped at $440 per ounce since last
December by repeated selling of gold reserves by European central
banks and the European Central Bank itself, the Gold Anti-Trust
Action Committee disclosed today.
GATA's finding was based on the research of its consultant, gold
market expert John Brimelow of Aegis Capital in New York.
"The ECB reported on Wednesday a sale of 360 million euros in gold
last week, 996,592 ounces at the bank's new book value for gold, or
31 tonnes," Brimelow said today. "This is a huge amount, matched only
by the sale of 47 tonnes announced at the end of March (but reported
only in May) and a 31.9-tonnes sale last December last year."
Each of these sales corresponded with gold's penetration of the $440
price level, as can been seen at the one-year gold price chart here:
"An indisputable pattern has now developed for the ECB to step
forward as a massive seller when gold approaches the $440s," Brimelow
said. "Curiously, the euro price of gold does not seem to be as
sensitive an issue with the ECB."
The massive selling of gold in recent months by European central
banks, Brimelow added, suggests that they will be obliged to suspend
sales in September if they are to keep within the volume limits they
set for themselves in the renewal of the Washington Agreement on
Gold.
The latest ECB gold sales were shown on the bank's consolidated
financial report for July 1, posted this week on the Internet here:
http://www.ecb.de/press/pr/wfs/2005/html/fs050706.en.html
Brimelow's research echoed comments made Tuesday by John Embry, chief
investment strategist for Sprott Asset Management of Toronto, during
an interview with Report on Business Television in Canada. Embry, who
will speak at GATA's Gold Rush 21 conference in Dawson City, Yukon
Territory, Canada, from August 7 to 9, likened the current
intervention of central banks against the gold price to their
coordinated selling of gold in the 1960s via what was called the
London Gold Pool. Embry noted that market demand for bullion
eventually overwhelmed central bank supplies then and he predicted a
similar outcome soon.
GATA Chairman Bill Murphy today repeated the organization's belief
that, because of their sales and leasing of gold and their false
accounting of leased gold as gold still in the vault, central banks
possess only a fraction of the gold they claim to have. Murphy added
that the purpose of central bank gold sales and leasing is not really
what is represented by the banks -- to raise money from a "dead
asset" -- but rather to manipulate the currency and precious metals
markets and deceive them about reckless government monetary policies.
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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
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Ted Butler silver commentary archive:
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----------------------------------------------------
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WHO HAVE SUPPORTED GATA
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Michael Kosares, Proprietor
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The Moneychanger
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Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
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