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Financial houses pledge to police derivatives themselves to keep regulators out
9p ET Thursday, September 15, 2005
Dear Friend of GATA and Gold:
Dennis Gartman of The Gartman Letter, who, after months
of disparaging GATA acknowledged the other day that GATA
might be just a little bit right about central bank
intervention against gold, was all over the place today
talking about his great trade, selling euros to buy that
reprehensible precious metal. As you'll see below,
Gartman cited the trade in his newsletter and got quoted
about it in a Bloomberg story. But Gartman also wanted
everyone to know just how much he just hated having
anything to do with the shiny yellow stuff and its
proponents, the "gold bugs," who, he remarks, "hate"
government.
Yes, Gartman must have hated his involvement with gold
... hated it all the way to the bank.
Don't worry, Mr. Gartman; some "bugs" may not be all that
thrilled by this strange association either.
As for the bugs' supposed "hatred" of government, might
it be possible to distinguish between limited and
unlimited government? After all, SOMEBODY minted all
those pretty gold and silver coins secreted away in
basements and safe deposit boxes, and it wasn't the
Libertarian Party or the Anarchist Club.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
From The Gartman Letter
for Thursday, September 15, 2005
By Dennis Gartman
... As we write, gold in euro terms is trading 367.95, a new high
for the past several years. Even we, as the most public proponent of
owning gold in euro terms, are much impressed!
That having been said, we shall reiterate for the record that we are
not happy when we are bullish of gold for we do not like what gold
represents: a hedge both against inflation and a "bet" on chaos. We
do not count ourselves amongst the gold bugs, and we do not like it
when we must associate with them. But co-exist we must for the
moment, and co-exist we have for the past several months, despite
our antipathy toward their philosophy. We do not generally like
government, but we do not hate it as do the "bugs". ...
* * *
Gold Climbs to 17-Year High on Demand for Inflation Hedge
By Pham-Duy Nguyen
Bloomberg News Service
Thursday, September 15, 2005
http://www.bloomberg.com/apps/news?
pid=10000081&sid=awK5EC6tamgA&refer=australia
Gold climbed to the highest in 17 years in New York, extending a
rally begun in July, as investors stocked up on bullion they expect
will provide a haven against high consumer prices and energy costs.
Gold futures for December delivery rose $5.60, or 1.2 percent, to
close at $459.50 an ounce on the Comex division of the New York
Mercantile Exchange, the highest since June 1988. The metal has
gained 5.6 percent since Aug. 30, advancing in 10 of the past 11
sessions.
Signs of quickening U.S. inflation and the prospect of an economic
slowdown following Hurricane Katrina combined to boost gold,
analysts said. Consumer prices are rising at a 3.9 percent annual
rate compared with a 3.5 percent increase a year earlier, U.S. data
showed today. Oil prices have surged 48 percent in the past year,
and gasoline has jumped 56 percent.
"Gold has always been a safe-haven play, and gold seemed to fit the
bill where we can add more inflation protection in our portfolios,"
said Zach Liggett, a fund manager at Traverse City, Michigan-based
Financial & Investment Management Group, which manages $450 million.
Liggett said his gold holdings have doubled since the beginning of
the year.
A futures contract is an obligation to sell or buy a commodity at a
set price by a specific date.
Liggett declined to comment on how much gold he currently has. As of
June his firm held 219,085 shares of the StreetTracks Gold Trust
traded on the New York Stock Exchange, according to filings with the
Securities and Exchange Commission.
High oil prices are the main factor driving up gold, said Frederic
Panizzutti, senior vice president at MKS Finance, a Geneva-based
precious-metals trading and refining company.
Delta Air Lines Inc., the third-biggest U.S. carrier, and Northwest
Airlines Corp., the fourth-largest, sought Chapter 11 protection
from creditors yesterday amid soaring fuel costs.
"Two big companies filing for Chapter 11 is raising some real
concerns among investors about the impact of high oil prices on the
U.S. economy and U.S. companies," Panizzutti said.
Oil prices reached a record $70.85 a barrel on Aug. 30. Gold is
cheap compared with oil, analysts said. It takes seven barrels of
oil to buy an ounce of gold, compared with 10 barrels in the 1970s.
"Some people are using oil to protect purchasing power, but oil
doesn't look very attractive to us,'" Liggett of Financial &
Investment Management Group said. "Gold has that purchasing power
ability, and the price looks more attractive."
Gold also climbed on investor demand for an alternative to
currencies.
"It shows a growing lack of respect for all currencies," said Dennis
Gartman, an economist and editor of The Gartman Letter. "You can't
have a bull market in gold until it starts going up in all
currencies, and that's what it's doing now."
Gold priced in yen have climbed 12 percent this year and 4.2 percent
since Aug. 31. Gold priced in euros have gained 16 percent this year
and 5.9 percent since Aug. 31.
Gold's correlation to the euro began to diverge after voters in
France and the Netherlands in June rejected referendums on a
European Union constitution.
Gold in London rose 7.65 euros, or 2 percent, to 372.63 euros, the
highest since the European currency debuted in 1999, at the
afternoon fixing, which is carried out twice a day over the
telephone by five banks.
"Gold's historically been something that people turn to when
currencies start to come under pressure," said Hersh Cohen, who co-
manages approximately $15 billion in assets for the Smith Barney
Appreciation Fund Inc. and Managed Accounts. "I own gold because
it's a hedge against a declining dollar."
The mutual fund is the fourth-biggest holder of the StreetTracks
Gold Trust with 1 million shares.
The dollar may fall as high energy price damp U.S. economic growth,
some analysts say.
Argentina's central bank may increase gold reserves as a hedge
against inflation and protection against a financial crisis, Juan
Ignacio Basco, bank head of market operations, said yesterday in
London. Increased reserves helped South America's second-biggest
economy stabilize its currency and revive investor confidence after
a $95 billion debt default triggered a plunge in the peso in 2002.
Other central banks may follow Argentina's example, Gartman, the
economist, said.
The Philadelphia Stock Exchange Gold & Silver Index today rose to
the highest in nine months. The gauge of 13 mining companies gained
1.8 percent to 106.61 after reaching 106.69, the highest since early
December. It has climbed 8.4 percent since Sept. 1.
Newmont Mining Corp., the world's biggest gold producer, rose as
much as 2.7 percent after surging 5.3 percent yesterday. The shares
advanced $1.14 to $45.08 at 2:02 p.m. in New York Stock Exchange
composite trading.
Gold prices also were supported by demand from jewelers, analysts
said.
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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
http://www.buysilvernow.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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