bill murphy of gata posted his daily commentary from friday in the clear at goldseek, and here is an excerpt. this doesn't happen often, so take a look:
Points of note…
*What else is new? There is an option expiry Monday. The Gold Cartel’s drill over the years has been to take gold down into and on the option expiration day. The Gold Cartel does so to protect their massive short positions. In essence this is the US Government ripping off the general public, through their surrogates like JP Morgan Chase, in an attempt to thwart the free market system. The problem is the sheriff sworn to protect the law … in this case is the US Government and the CFTC. How do they get punished when they are the ones who are supposed to enforce the law?
What was stunning today was how The Gold Cartel got stuffed yet again with one of their standard planned attacks. We are seeing this "stuff" pattern time and time again of late.
*The Gold Cartel’s traders don’t realize, or don’t know how to handle, the "new buyers." In days of old they would suck in the spec longs, getting shorter and shorter as the price went higher and higher. Then they would pull the plug by dumping physical gold into the market and bombing the derivatives paper market. Eventually fund longs would sell as the technicals turned bearish. The market would cascade down with a number of funds eventually going short. The Gold Cartel would cover and up we would go again.
This time the buyers are the biggest of money … countries, largest hedge funds, etc. They are competing against each other and want to buy more gold on any dips The Gold Cartel hands to them. It shows in the price action.
*At the Silver Summit this past September, the CPM Group’s Jeff Christian stood up to contest some of the statements I made as a speaker on behalf of GATA. He talked a bunch of nonsense, especially when he said he foresaw central banks buying gold and then predicted the price of gold would average $912 over the next decade. HUH?
Well, yesterday he was on CNBC and was asked about the Paulson move to open up his own gold fund in January. He extolled Paulson saying it was a good move. What a hypocritical turd! Why is that a good move if the price of gold is going to drop nearly $250 in the years to come? This guy is a joke like his counterpart, Kitco’s Nitwit Nadler.
*The leaders in the gold industry are the most clueless bunch in history … of any industry. Christian is one of them, along with the usually wrong and bearish GFMS, the official gold statisticians. A few weeks ago they told a very respected dean of the industry they couldn’t imagine gold staying up at these prices. Gold was about $1,000 at the time.
Then you have the World Gold Council who rebuffed GATA this past decade and who, until recently, was pitching high fashion jewelry and ignoring gold’s investment value. That brainchild pitch while gold has been in a nine year historic bull market run.
Then, how about the leading gold producers like AngloGold and Barrick. Talk about lightweights! While decrying GATA, mocking us, and calling us nuts from 1999 on, they hedge years of forward production at $300, plus or minus. Can you imagine an oil producer hedging at $10 or $15 per barrel?
GATA ranted to whomever that would listen about what fools they were and of their complicity with The Gold Cartel. Fast-forward nine or ten years later. Barrick has to raise nearly $6 billion to close out hedges they still have on their books, compounding other billions of hedge losses already taken. Who knows how many billions AngloGold has lost and will lose?
Then last week at a London gold conference, the newer CEO’s of each those companies told reporters they were looking for gold to retreat to $900 per ounce in a correction mode. Talking their debilitating hedge book maybe, wouldn't you say? That’s what they get for listening to bullion bankers Goldman Sachs, JP Morgan Chase, GFMS and the CPM Group instead of GATA. That’s what they deserve for not dealing with the ramifications of the gold price suppression scheme which were so obvious so long ago now.
http://news.goldseek.com/LemetropoleCafe/1258908502.php
