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Bid for a valuable souvenir of Gold Rush 21
7:07p ET Sunday, July 31, 2005
Dear Friend of GATA and Gold:
Bloomberg News Service's weekly survey of traders'
views on the gold price, appended here, quotes a
GATA supporter, Paul Yusem of Lombard, Ill., and
a participant in GATA's Gold Rush 21 conference,
Gregory Orrell of Orrell Capital Management in
Livermore, Calif.
The survey also takes note of central bank gold
dishoarding, which, while the primary determinant
of the gold price, seldom is recognized as such.
Why should central banks be selling so much
gold as the price is rising?
Because their foremost goal is not any return
on their gold assets but the suppression of
gold's price, gold being the measure of and
the leading competitor with their own currencies.
When the financial world begins to understand
this, the gold price suppression scheme will
be overwhelmed by investment demand. And
that's what we're working toward.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Gold May Rise on Growing Demand
for Jewelry in China, India, Survey Says
By Claudia Carpenter
Bloomberg News Service
Monday, August 1, 2005
http://www.bloomberg.com/news/markets/commodities.html
Gold may rise for a third straight week on speculation that higher
demand for the precious metal in China and India will exceed supply
created from sales by European central banks, a Bloomberg survey
showed.
Thirty-five of 46 traders, investors and analysts surveyed July 28
and July 29 from Melbourne to New York advised buying gold, which
rose 1.1 percent last week to $435.80 an ounce on the Comex division
of the New York Mercantile Exchange. Six recommended selling the
metal, and five were neutral.
"What we're seeing in demand is very positive," Newmont Mining Corp.
Chief Executive Officer Wayne Murdy said in a telephone interview
July 27 from Denver. "Once you get into the second half of the year -
- into August and September -- the jewelry trade starts to build
inventory for marriages in India and the Chinese new year."
Gold soared 4.8 percent in August last year as manufacturers geared
up for increased jewelry demand during year-end holidays and the
wedding season in India, the world's biggest buyer of gold. European
central banks, which agreed to limit gold sales to 500 tons a year
through September, had sold 415.4 tons through June 23, according to
the World Gold Council.
Gold for December delivery rose $4.90 an ounce last week, meeting
expectations of the majority of analysts surveyed July 21 and July
22. Bloomberg's survey has forecast the direction of prices
accurately in 36 of 66 weeks, or 55 percent of the time.
"Gold prices will rise ahead of the festive demand in India," said
Prithviraj Kothari, director of Mumbai-based Riddhi Siddhi Bullion
Ltd.
Gold prices fell 0.3 percent last month during a seasonal lull in
demand. "June and July are usually cyclically the lowest month for
the gold price," Newmont President Pierre Lassonde said on a July 27
conference call with investors and analysts.
"The gold price does not want to go below $420 even though a lot of
mornings you look at the screen and it seems traders out there are
trying to kick it down," Lassonde said. "It doesn't want to go
down."
Fifteen central banks in Europe, including the European Central
Bank, agreed last year to limit their gold sales to 500 tons
annually for five years. The sales periods end each year in
September.
The European Central Bank said last week three member banks sold
gold worth 175 million euros ($212 million) in the week ending July
22. With gold averaging about 350 euros an ounce that week, that's
equivalent to about 15.5 metric tons.
Including other sales in the past month, the total is probably
closer to 484 tons, according to Paul Yusem, an individual investor
in Lombard, Illinois, who has traded gold futures for five years.
"There is only one way to temper this robust physical demand -- much
higher gold prices," Yusem said.
From the seasonal low in July to its high in August, gold has
rallied on average $26 during that period during the previous four
years.
"Nothing points to this year being any different," said Gregory M.
Orrell, president of Orrell Capital Management Inc. in Livermore,
California.
Last year, gold rose $29 from the July low to the high in August. In
2003, the rally was $38.40. The low last month was $418.20 on July
15.
The rise in gold last week above the 200-day moving average for the
first time since July 1 may trigger more buying by traders who
follow charts and graphs, pushing prices to as high as $450 this
month, said William O'Neill, a partner at Logic Advisors LLC, a
commodity consulting company in Upper Saddle River, New Jersey.
In the week ended July 26, speculators had the lowest net holdings
of Comex gold futures since June 7, the U.S. Commodity Futures
Trading Commission said July 29. Hedge funds and other large
speculators bought 49,022 more contracts than they sold, down 9.4
percent from the week before, the commission said.
"Hedge funds continue to have a bullish bias, and with each passing
week, gold's role as an alternative asset increases," said O'Neill,
former head of futures research at Merrill Lynch & Co. in New York.
Gold has climbed 12 percent in the past year as a decline in the
dollar boosted the appeal of the precious metal as an alternative to
U.S. stocks and bonds. Gold reached a 16-year high of $458.70 an
ounce in December as the dollar fell to a record against the euro.
A futures contract is an obligation to sell or buy a commodity at a
set price by a specific date.
----------------------------------------------------
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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
http://www.goldpennystocks.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
----------------------------------------------------
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
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http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $1,000 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled GATA.
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
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