Interesting stuff -- I re-iterate my previous mailing regarding JPM(Morgan), Chase and Goldmans... Oh yeah -- JPM(May),, you can throw your charts away for the rest of the year, because they aren't going to help you any.. Next target is $325.00, if we make it there next then all bets are off after that! >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Greenspan / Bullion Dealer Gold Panic On Friday, I informed you that it was the BULLION DEALERS and TRADE that ran up the gold price after it broke above $275. I explained that it was clear to me that once the dealers saw The Gold Cartel losing, they panicked - for they know what is coming down the road. The following came in yesterday from one of your Café members and confirmed what I already brought to your attention. By the way, pathetic Bloomberg and Reuters (whom I met with personally two years ago, yet still refuse to even mention the word GATA) reported that it was spec buying that drove gold to 9 month highs in the biggest one day move higher since the Washington Agreement. Wrong! Hi Bill, My name is J. C. and I have been a member of the cafe for what is now going on my third year and I am also a Comex member and have been so for 20 years. I would like to share my observation of Friday's move with you. Since Thursday Chase was trying to defend the 275 number. Every time we approached it they sold 200 August contracts every dime up. The June/August switch was offered at a buck so Chase started selling August at 27520-27580 and Goldman was a seller in June from 27450 to the high of 27490. Whenever another trader bid 90 Goldmans broker screamed SOLD--COME ON which I am sure you know means that Goldman had the world to sell. I turned to another trader and said Chase and Goldman will not let this market trade above 275 and it did not settling at 274.30. Now on to Friday......The market opened a dollar lower and quickly traded down to 27260, on small volume, the Euro was on it's lows and the dollar was on it's high's (as you know that is not a good sign for gold) and it looked like it was going to be a down day. Then Moore capital started to do some buying in June and Refco was a buyer in August and the market was drifting higher, and because of the Euro and the $ most locals in the ring were short. Goldman and Chase again tried to defend the 275 number but on this day it would not work. Massive buy stops were hit above 276 and we were off to the races. One of your articles this morning stated that it was fund buying and CNBC is telling the world that gold and oil were up on Friday due to unrest in the middle east. I want you rest assured that the buying from 276 to 288.50 was majority trade buying. I have been on the exchange a long time and I have heard and seen it all but this my friend was TRADE BUYING. Thanks for listening to me and thanks for all you and your staff are trying to do for the gold world. Sincerely, J. C. Important feedback from another Café member: "A financial man on Wall Street spontaneously observed that gold was moving. A mutual fund manager innocently asked why, to be told by the firm's commodity people had said that it stemmed from anxiety concerning the law suit in Boston alleging BIS involvement in manipulation." This is what we know: *The specs that got long on Thursday are big winners, so big that they can freely add on dips - or whenever they choose to do so. This is now a dream trade. *The dealers rarely buy on strength or technical chart breakouts. This indicates a bit of panic on their part. Most bullion dealers were not part of The Gold Cartel, but most had to know what was transpiring and some had to be playing along for the ride. They have to now be stunned at what is happening. The big move has occurred ever since GATA went public in South Africa and received so much South African media attention as a result of the GATA African Gold Summit in Durban. It is no coincidence that gold has rallied over $30 per ounce recently. The haughty and arrogant bullion dealers cannot believe that this is happening to them - gunned down by the GATA guerilla forces. *If the dealers are scrambling to cover shorts and the specs are long and want to get longer, who is going to sell? The producers? Certainly not the Aussies. The Aussie gold price is now around A$552. Many of their hedge books are underwater and sinking fast. They (Sons of Gwalia types) are liable to panic once they realize GATA is winning and gold is headed for $600 per ounce. Certainly, not mega hedger Barrick. They just added substantially to their hedges near the bottom. A recent story in www.thestreetcom.com: "Barrick Gold is one of the most heavily hedged gold producers. In fact, the company actually added to its hedge book in the most recent quarter, selling gold forward at an average price of $270 per ounce. Analysts estimate that Barrick has between 27 and 39 percent of its total reserves sold forward, a huge number for a gold company." Another significant hedger, Anglogold, announced recently that it had reduced its forward sales by 800,000 ounces. Anglogold will more than likely continue to reduce hedges in the future, not increase them. If dealers want to buy and some producers need to cover, then who could the sellers be? Certainly, not the specs. They want to buy and the ones that are already long prior to Friday have big cushions to do so. It is not just the "black box" types that want in. One of the legendary traders/investors of all time was rumored to be a big buyer on Friday. That leaves only The Gold Cartel, or the central banks, to quash another rally. The problem there is that GATA is breathing down their necks everywhere they turn. Especially, Alan Greenspan who, as it turns out, may have been one of the ringleaders of the gold fraud ever since he abruptly took his seat on the Board of Governors of the BIS in Switzerland. Let us examine the pickle Greenspan is in. It will illuminate Bob Chapman's "on the money" gold bulletin that he sent our way early this past week which included: "Our intelligence sources have informed us that Alan Greenspan has given the bullion banks until the end of May to clear up their hedging and outstanding gold derivative positions." JB _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
