You are here
Peter Brimelow: M3 mutterers refuse to give thanks
4:53p ET Thursday, November 24, 2005
Dear Friend of GATA and Gold:
When Russian President Vladimir Putin this week attended a mineral
resources exhibition in the Russian Far East, endorsed the plan of
the Bank of Russia to double its gold reserves, and expressed
support for increasing his country's gold production, many assumed
that Russian gold purchases would come from domestic production and
thus not disturb international markets.
But today's RIA Novosti report, dispatched to you earlier today,
quoting the Bank of Russia's first deputy chairman, Alexei
Ulyukayev, suggests otherwise. It suggests that Russia is ready to
enter the physical gold market everywhere. This would be
revolutionary, as noted by Michael Kosares, proprietor of Centennial
Precious Metals in Denver, whose analysis at his firm's Internet
site, www.USAGold.com, is appended here.
Indeed, the unusual resilience of the gold price in recent months --
particularly since GATA's Gold Rush 21 conference in Dawson City,
Yukon, Canada, which was attended by one of President Putin's
economic advisers, Andrey Bykov -- hints that a central bank has
been a buyer for some time now.
Of course Russia's central bank took official note of GATA in June
2004, when another of its deputy chairmen, Oleg Mozhaiskov, told a
meeting of the London Bullion Market Association in Moscow about
GATA's contention that Western central banks had been rigging the
gold market to the detriment of the developing world:
http://www.gata.org/RCBTakesNote.html
While GATA, given the Russians' interest, has been trying to convey
much to them, we have no inside information here. The Russians may
be good listeners but they have yet to prove themselves
conversationalists. But if YOU had a load of paper and electronic
currency whose proliferation was unlimited and if you were
disadvantaged by the imperial schemes of the issuer of that
currency, what would YOU do to protect your wealth and your national
interests?
Centennial Precious Metals' Kosares argues that if the Russians are
serious about buying gold, their announcement is the equivalent of
the Washington Agreement of 1999, which put a ceiling on central
bank gold lending and touched off gold's bull market.
Kosares' analysis is below.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
By Michael Kosares
Centennial Precious Metals, Denver
http://www.usagold.com/cpmforum/
Thursday, November 24, 2005
"First Deputy Chairman of the Central Bank Alexei Ulyukayev said the
bank would be purchasing gold 'on all markets on which it is
available,' meaning both domestic and foreign markets."
A few observations:
1. We should not forget that it was central bank buying tha broke
the back of the anti-gold cartel in the late 1960s early 1970s. This
paved the way for the massive bull market of the 1970s.
2. Ulyukayev is not talking about paper trading for speculative
purposes. He's talking about buying physical gold and storing it in
reserve as a long-term asset.
3. This policy is a major, decisive departure for the G-8 in that
one of its members will be exchanging currency reserves for gold --
and after a public disclosure. Russia now is receiving a large
amount of foreign exchange for its oil and gas (this will not change
for quite some time), probably in the form of dollars and euros.
This looks like the first step in a long-term program.
4. Russian gold buying will become a new element in the physical
gold market, and likely will put even more pressure on those short
the metal to cover now while it is still cheap -- of course, that
Russia follows through. But I can't see why they would announce such
a plan without meaning it.
5. I rate this announcement by the Russian central bank as the
equivalent of the Washington Agreement in 1999, which kick-started
the current gold bull market. It amounts to a de-jure action that
could have a major impact on the gold market and comprise the
primary driving force for the second leg of this bull market.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
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
Box 460009
Denver, Colorado 80246-0009
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
----------------------------------------------------
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
By GoldMoney:
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
in the United States.
