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Wow! Thanks for posting that chart. Since the report was so short let me link another story about gold derivatives and Enron:

Dinsa Mehta, J.P. Morgan Chase, Derivatives, Enron and Gold

Enron was trading every market in the world, most in SIZE. They were leveraged to the hilt. Dinsa Mehta was one of the chief honcho’s in The Gold Cartel and a well-known gold derivative specialist. He also knew the gold price was rigged as he was instrumental in doing the rigging dirty work. I have been told that Enron often paraded him around at their Dog and Pony shows. How could Enron not have utilized the gold carry trade to finance their operations? How could they have passed on the 1% gold interest rates, knowing the gold price was rigged? How could they not have been short hundreds of tonnes of gold, in their off-shore operations (Mahonia Ltd.)?

Maybe the real Enron story is still hidden?

PS I don't know how much of this true...

I've been fascinated by the GATA's allegations of gold price rigging and all of the ramifications, especially since guys like Larry Kudlow keep pointng to its price stability is an indicator that the monetary supply situation is under control. If indeed gold shows signs of a melt up, would not the central banks attempt to flood the market with their bullion reserves ? .

I have read that earlier and it is interesting. But the bottom line is: fundamentals on how economics work is only beginning to be relearned and it is going to be painful. There is also another possibility, things get so bad the people will give the gov. anything to solve it and presto, instant communist state(we are a socialist nation as it stands). The people of today are not like the people of the late 20's and 30's. They still remember what it was like to live a hard life. The eaters of today have had it far to good.