Gold Conspiracy

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I received this by subscribing to Bill Murphy's Le Metropole Cafe at link below.

Le Metropole members,

I had planned to do a Midas du Metropole today but got bogged down as I spent a good 45 minutes talking to a Staff Director of the Senate Banking Committee. She was from Texas too, knew about the Bank of England gold sale and wants to know all GATA has to tell them about our opinion of the size of the gold loans, the potential dangers to the banking system that creates, our gold market manipulation allegations, and why we feel the collusion going on in the gold market is a bigger scandal than Watergate.

So instead I will do a Mini Midas and will touch upon some highlights.

Number one is the BOE gold sale fiasco. It has truly become an Abbott and Costello sort of "Who's on First?" comedy routine -or like Alphonse and Gastone or Fric and Frac. Take your pick.

Asked in parliament if it was right to sell off part of Britain's reserves, Prime Minister, Tony Blair, replied, " The gold price has been falling for two years, so in fact if it carried on falling and we didn't sell we would lose money". ( so now a key reserve valued for hundreds of years has been sold as part of a trend following market timing philosophy ).

He then declined to say if he would meet with the South African Gold Industry delegation, but said the sale was justified saying, " We did this on technical advice from the Bank of England. ( excuse me Haruko Fakuda of the World Gold Council was personally told that the decision was a political one and made by the Treasury )

Prime Minister Blair then went on to say, " It is only the Conservative Party's utter obsession with the euro in some bizarre way. Given that Argentina and Switzerland ARE also selling gold, what it has to do with the euro I do not know. It is only that which is making them raise this issue. It was done, as I say, on technical advice. It was carried through perfectly sensibly and we actually got the best deal for the country".

( Hello, Mr. Prime Minister. First, do you know something we don't know about Switzerland and Argentina selling gold at the moment and second, the best deal, you could have achieved would have been $30 to $40 more per ounce by carrying out the sale like all the other major countries have done for the past 20 years. No one could have botched a sale like you all just did if they tried )

But the story gets now gets confounding. On Sunday your Chancellor of the Exchequer said in the London Times," "The proposal to sell the reserves was put to ministers by officials, and, say TREASURY INSIDERS, agreed to with LITTLE DISCUSSION".

The chancellor is said to have been surprised and mortified by the reaction from Thabo Mbeki, the South African president, who said last week that the decision would have a "potentially disastrous effect" on South Africa.

Ok, so what gives here. Blair said it was a BOE decision. The BOE says it was a Treasury decision. The Treasury says it was only a Treasury decision of sorts and agreed to with little discussion.

Good grief. A decision that may have DISASTROUS effects on South Africa was made with very little discussion that no one will take responsibility for. Yet, it is so important that Tony Blair will not reconsider the sale, even though he does not even know who made the decision to sell the English gold in the first place.

They might as well ask me who made the decision to sell the English gold since they obviously have no clue- it has been clear to us at GATA for months now. Had to be our Treasury or Fed in conjunction with Goldman Sachs and some other bullion dealers! At least my answer is consistent and holds water. Those guys make Abbot and Costello look profound!

While it received little attention in the U.S. press, we understand a bomb went off in the British Consulate in South Africa ( that needs to be confirmed but a good source phoned in that to me today ). What we do know according to a Reuters report today was that:

Thousands of South African gold miners plan to march on the British and Swiss embassies in Pretoria on Saturday to protest central bank gold sales which have pushed bullion prices to record lows.

"I am expecting thousands of mineworkers to attend," National Union of Mineworker's Gwede Mantashe said. "The British owe us a lot. They have taken a lot of wealth from us," Mantashe said, noting that South African gold mines helped to finance the British war effort during World War Two

Then there is South African President, Thabo Mbeki, who according to Business Day said, plans to finance debt relief for poor nations make "no sense if in the process you destroy the gold producers".

So it has been a couple of zany days. How clear can it be that there is an "agenda" behind these gold sales. That agenda has nothing to do with helping poor countries. Otherwise, the BOE would reconsider its sale and the IMF would come out and say that they intend to press for an IMF gold sale, but not until there is a substantial recovery in the price- like to $350 per ounce; one that the gold producers in the poor countries could live with.

When will the U.S. press and the world wake up to the fact the gold market today is all about large investment banking houses, the bullion dealers, the U.S. government and the British government fostering gold sales to serve their own selfish interests? They are causing incredible pain and suffering around the world and make the Robber Barrons of our U.S. past look reasoned. Yes, this is a scandal that is bigger than Watergate because of the devastation their dealings are causing and someday that truth will be known.

To end this Mini Midas on a positive note- according to Standard Bank, physical demand for gold is "staggering". So much for the press reports that gold is not important anymore.

Even with all the manipulation , we are due for a big, big rally - for they are making it to just too obvious now and making it too easy for the likes of GATA and others to reveal what a sham this is.

Le Metropole Cafe

All the best,

Bill Murphy Le Patron

In my opinion, a strike or civil disorder in South Africa could trigger a global reaction.

-- Bill P (porterwn@one.net), July 15, 1999

Answers

Hi Bill,

It appears to me that the central banks, IMF, and investment banks are manipulating the price of gold down because we are on the verge of a currency collapse. The reasons for this are:

* Y2K. Enough said.

* The depreciating Euro. What will be the psychological impact if it falls below 1.00 to the dollar.

* Rising oil prices.

The U.S. government annouced today that comsumer prices did not rise in June for the second month in a row. When you look at the price of gas, do you believe this? They are fixing the numbers.

-- Mr. Adequate (mr@adequate.com), July 16, 1999.


This is a no brainer. Anyone that is not smart enough to figure out that Gold and silver is getting ready to skyrocket soon is in lala land. Would Warren Buffett buy 179.2 million ounces of silver if it was going down? I think not. The currancy dam is cracking and they can't repair the cracks quick enough. It's just of matter of time before the dam busts and when it does silver to $80.00 and gold to $3000.00 per ounce. Will you take advantage of this once in a lifetime opportunity? I have.

-- no spam (nospam@spam.com), July 16, 1999.

No Spam - How did you come up with the 179.x figure for Buffett??

-- ..- (dit@dot.dash), July 16, 1999.

Follow the money (if you can). To WHO bought the gold? That's a key piece of info I haven't seen (or missed).

My suspicion is that most of that gold is going to wealthy individuals or private banks. (Many Swiss banks for example, are privately held, very secretive, and manage or hold investments for a relatively few wealthy individuals -- as contrasted to the retail banks.)

Remember -- buy low and sell high is how the wealthy get and remain wealthy -- not like the average schmuck who jumps on something near the peak (high) and sells after the crash (low).

Now, keep in mind that there is likely a large overlap (sameness) of people who are clients of the private banks (who are buying at a low price) and officials and advisors to various governments (who are selling at a low price).

Just my opinion, but the INDIVIDUALS responsible for the sale of government gold to themselves (through their banking nominees) see a big profit ahead when it once again zooms. IMHO.

-- A (A@AisA.com), July 16, 1999.


Things to consider.

BOE's gold still hasn't hit the street.

If a short's position is being squeezed they will need physical metal purchased at the lowest possible price.

Most importantly - the interest rate on the yen is below that of gold leasing! Think about it.

-- Mitchell Barnes (spanda@inreach.com), July 17, 1999.



Mitchell you stated that the BOE gold still hasn't hit the street. What makes you think it is going to?

-- OR (orwelliator@biosys.net), July 17, 1999.

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