Now this is interesting. Also, I saw this today that, if true, would be absolutely stunning for the POG:
http://jessescrossroadscafe.blogspot.com/2010/03/are-traders-demanding-us-credit-default.html
In a letter to the CFTC's Chairman, Gary Gensler, GATA Chairman William Murphy shares the following bombshell:
"GATA has evidence that there are enormous physical short positions in the gold and silver markets that cannot be covered."
Even as the CFTC is meeting later this month to establish position limits in the gold, silver, and other precious metals' markets, it could be none other than the CFTC's core banks, and Mr. Gensler's former Goldman bosses, that form the very core of the biggest market manipulation collusion syndicate in the history of the commodity markets.
Because of the decades-long interference with the gold market, we estimate that the free-market price of gold is multiples of the current price. Growing stress caused by burgeoning physical bullion demand is threatening to lead to a price explosion, which will restore to the market the balance that regulation has failed to maintain. In our view, the Comex paper market will become dysfunctional, with "force majeure" having to be declared as the concentrated shorts are unable to deliver on their obligations."
If GATA is not bluffing and indeed has evidence of massively uncoverable physical positions, and should this evidence be made public, the repercussions for the price of gold will be unprecedented.
Full GATA letter to ex-Goldmanite, and Brooklandville, MD resident, Gary Gensler:
