Skip to comments.Sharp selloff in gold!
Posted on 07/23/2002 10:50:06 AM PDT by Lazamataz
Gold has sharply dropped this afternoon, losing 11.00 dollars per ounce as of 1:43PM EST. The loss amounted to more than 3% of overall value of the commodity.
Normally considered a 'refuge investment', gold has gained in value while individuals try to find a place to keep their money in the face of a foundering stock market. While this has led to a run up in prices, there are risks of sharp losses in value, as has occured today.
It is not yet clear what has caused this dropoff in gold prices.
It's obviously the FJBs running the Federal Reserve that are sabotaging the gold market to ruin TRUE PATRIOTS. </sarcasm> :o)
Probably because there are a lot of good buys in the stock market which, by the way, includes a lot of companies that are not a part of the Dow Jones index.
Him or Queen Elizabeth.
Perhaps the words out that we are NOT going to invade IRAQ?
On February 14, 2002 Congressman Ron Paul issued a press release that included the following:
"The private Gold Antitrust Action Committee held a press conference this week to discuss federal manipulation of gold markets. The group has uncovered evidence suggesting that the Federal Reserve and the Treasury department, operating through the Exchange-Stabilization fund and in cooperation with the International Monetary Fund, have been systematically working to deflate the price of gold. Because rising gold prices are seen by investors as a barometer of inflation, the Fed has purportedly suppressed prices to disguise the true nature of the financial bubble of the 1990s."
RBC Global Investment Management Inc., a division of Royal Bank of Canada, whose gold mutual fund is among the best performing in the world, has also issued a report that was circulated throughout Europe to clients and prospective clients that fully endorses the analysis of the gold market done by the Anti-Trust Action Committee's (GATA). It concludes that the price of gold is being manipulated.
The RBC report says the price of gold is going to explode and cites "Increasing Evidence of Unsustainable Gold Price Manipulation" as one of its reasons. The RBC report points to 11 "factors" of evidence regarding the gold price manipulation:
1) Aggressive gold lending, which from an economic perspective is indefensible, has filled the supply/demand gap.
2) New York Fed gold has been mobilized when the gold price is rising.
3) Timing of Exchange Stabilization Fund gains/losses corresponds to gold price movements.
4) Audited reports of U.S. gold reserves show unexplained variances.
5) Minutes of Fed meetings confirm officially denied gold swaps.
6) Rules on gold swaps have been revised and then denied. However, individual central banks have repudiated the denial.
7) U.S. gold reserves have recently been re-designated twice, initially to "custodial gold" and latterly to "deep storage gold."
8) Statistical analysis of unusual gold price movements since 1994 indicate high probability of price suppression. The invalidation since 1995 of Gibson's Paradox -- that gold prices rise when real interest rates fall -- suggests that the real manipulation began then.
9) New York gold price movements versus London prices trading defy odds.
10) Timing of huge increases in bullion bank gold derivatives is consistent with gold price declines.
11) A rapid decline in U.S. Treasury holdings of gold-backed SDR certificates is not explained.
The RBC report goes on to say: "One or two of these factors could be viewed as random, but the full body of evidence is overwhelming."
The Gold Anti-Trust Action Committee has fully documented all 11 points cited by the RBC Global Investment Management Inc. regarding the manipulation of the price of gold. To date, no one in the gold industry has refuted any of GATA's specific assertions.
"The American public and Congress are demanding truth, full disclosure and fairness in U.S. financial markets. In that light, all of these Congressmen and Congresswomen on the Financial Service Committee ought to sign on to this Bill as co-sponsors," says GATA's Bill Murphy.
Gold Anti-Trust Action Committee
Bill Murphy, 214/522-3411
They are inviting disaster, as they are going to be found out. The price of gold is not going to stay down much longer. When the price explodes, it will lead to financial chaos, as the shorts panic. In effect, these massive gold shorts are on a financial Titanic and there are not enough lifeboats to save them all. My guess is the price of gold will take off at the worst possible time on the stupefied Gold Cartel; it is called Murphys Law." ---- From http://www.freerepublic.com/focus/news/715790/posts
The economy is on track. All utilities are getting hammered which mean their divident returns are attractive.