jpm worte:
>You could say .. a dramatic "trend" has been established, and nothing
>particularly dramatic will happen for a few days now.
It is out of control. There is not enough to cover the paper gold the
short positions are scrambling to CTA (cover their Xsss). When Hong
Kong markets opens AM, gold will pass $300. Many pit traders who are
too young to experience this, will not be able to control price in the
regular fashion. The fear factor has been set into motion, Europe is in
a panic because of the onslaught of the Euro. The only safe way is
gold. Whether Japan is doing it or not, central bank buying of gold
is a key element in a gold story that hasn't been told. There have been
huge, undisclosed central bank sales over the past two years. At that
same time, it
is apparent that the market has absorbed these sales through central
bank purchases and other untracked demand.
In other words, if the gold supply has been far higher than anyone
believed, then the demand must have also been far higher than previously
thought. And if
demand is that high...and the great majority of central bank supplies
are about to be cut off by the establishment of the European Monetary
Union...then the resulting
supply/demand imbalance will assure far higher gold prices. No one who
had gold wanted to sell it today at the coin show. Those bullion prices
were up $10 since since my sell price on Thursday. They expect it
higher still.
Let me reiterate Strong demand at Britain's auction of 20 tons of gold
on Tuesday was 3.7 times oversubscribed.
Rgds.
MSO
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