103 to 88 tons in 1 day?? A loss of 500,000 ounces. Hmmm, ==============================================================
Hi Louis, Since you said you no longer follow GATA's Bill Murphy, I thought you might be interested in some of his (and others) comments on the matter from tonight's edition of Murphy's LeMetropole Cafe, a pro gold read if there ever was one! <vbg>
The James Joyce Table
Midas du Metropole
Topic du Jour ---------------------------------------------------------------
BOMBSHELL! World Gold Council’s ETF Dumps 15 Tonnes Of Bullion Right BEFORE Price Collapse
""Oh, what a tangled web we weave/when first we practice to deceive." – Sir Walter Scott
If there ever was a sequence of events to prove up the importance of GATA, it is what we are witnessing at the moment. Let’s get right to it! This email came in to me early last evening from a Café member in the brokerage community:
This smells to high heaven!
StreetTRACKS inventory went down by 15 tons in a fairly even gold market. I would guess they used it to slow the gold rise!
Lassonde sold almost all of his NEM shares JUST BEFORE the downward gold share push. He is also on Bush's economic advisory board, so he is in the know about the gold cartel timing. Shouldn't he be visiting with Martha Stewart for this move?
I'd move to Canada if I didn't hate the cold! B
Bells and whistle alarm bells went off when I received the email. Not quite understanding exactly how this ETF works and where the ETF report came from, I circulated the email to colleagues to verify its veracity. Before I received responses, this Reuters gold report surfaced this morning:
LONDON, Dec 8 ( Reuters ) - Gold slid sharply in Europe on Wednesday, losing more than $7 at one point, as investors bought the dollar and sold commodities into the year-end.
Traders also noted a hefty drop overnight in the quantity of gold held in trust on the new U.S.-listed gold exchange-traded fund (ETF), which did nothing to help sentiment.
The U.S. ETF jumped from 103 to 88 tonnes overnight so somebody dumped a whole load yesterday and rather set the tone for today.
-END-
Further details surfaced from a fellow Café member:
Bill, Thought you out to know that StreetTracks is showing re GLD a decrease of 15 tonnes in the Total Net Asset value tonnes in the Trust from Dec 6 to Dec 7 as of 4:15 P.M. Have no idea what it means, but thought you should know.
Total Net Asset Value Tonnes in the Trust as at 4.15 p.m. NYT
Dec 6, 103.56 Dec 7, 88.02
-END-
From the World Gold Council’s own propaganda, this fund is supposed to "track" the gold price." So why did they sell 15% of their bullion in a quiet market? Another gold market coincidence? Whether a fluke or not, this screaming red flag re the WGC ETF corroborates GATA’s worst fears on this clandestine entity and more than fully validates our public airing of the subject.
More, JUST IN, after the gold close:
DJ Fall In StreetTRACKS' Stock Encouraged Gold Slide - Trade
Wed Dec 08 12:39:57 2004 EST
LONDON (Dow Jones)--The 3.5% fall in the price of spot gold Wednesday may have been encouraged by the sale of 15% of the gold held by the StreetTRACKS exchange-traded fund, or ETF, analysts in London said.
The total net asset value of gold in the trust stood at 88.02 metric tons Wednesday against 103.56 tons Tuesday.
Gold fell to $436.90 a troy ounce at the London fix Wednesday afternoon against $451.80/oz Tuesday afternoon.
While most participants agree the market was primed for a slide - in light of an overbought technical picture and a bounce for the dollar - they also believe the fall in tonnage in the StreetTRACKS trust was responsible for some of the selling.
The fall in the StreetTRACKS tonnage highlights the expectation by holders of the shares that the share price and price of gold is set to fall, said an analyst.
"It hasn't helped sentiment," said Kamal Naqvi, precious metals analyst at Barclays Capital.
StreetTRACK gold shares were launched Nov. 18 on the New York Stock Exchange to track the price of gold. Each share represents one-tenth an ounce of gold.
In the first week of trade to Nov. 26 the trust built up a total net asset value of just over 100 tons, but since then this remained virtually unchanged until the decline Tuesday.
Over the same period the share price for the fund has also remained steady, closing Tuesday at $45.11 compared with the close on the first day of trade at $44.38. At 1626 GMT Wednesday the shares were trading at $43.62.
"Gold was primed for a correction but it seems to me an interesting correlation that the StreetTRACKS tonnage fell at the same time," said Philip Klapwijk, managing director of GFMS Ltd.
The StreetTRACKS Web site says the tonnage in the trust for Wednesday will be updated between 1615 and 1630 EST.
-By David Elliott; Dow Jones Newswires; (4420) 7842 9411; david.elliott@dowjones.com -END-
A cursory review of all of this ETF commotion:
* The WGC ETF buys 100 tonnes of gold, yet it barely moves the market.
* The gold price advances are capped each day to $2 and $3 at a pop for the most part.
* During this time and especially this past week, gold in foreign currency terms loses ground with gold in euros falling from 344 to 335 and change.
* This new buying seems to have little affect on the price of gold even though the international gold market is firm as can be to start with.
* For many weeks GATA and the GATA ARMY raise concerns the new ETF entity has set itself up to be a tool for The Gold Cartel, or worse, an active ally of cabal forces.
* Fervent supporters of the new entity are vociferous this new entity is one of the most important positive gold events in 30 years.
* GATA says it would love that to be the case, however, the way the World Gold Council structured the entity left too many questions unanswered, exposing vulnerability it could be used to hurt the gold price at strategic moments, not help it.
* James Turk has queried publicly why the SEC approved this vehicle when it did without demanding the same safeguards it has required from other entities in the past? As Café members and the GATA camp know, James, a former Chase banker, is extremely thorough in his work. James’ suspicions have raised a brouhaha as a result of public airing of his valid concerns.
* Now, last night we find out the WGC ETF dumps 15 tonnes of gold in a quiet market and then gold is slaughtered the next day.
* This peculiar 15 tonne drop in the ETF validates James Turk’s basic assertion that the WGC ETF’s assets have to audited to have any credibility.
You be the judge of what has occurred!
Talk about outrage! The bulliondesk does not allow commentary by GATA and James Turk on its website, yet goes all out to attack us and then allows us to be criticized by detractors for what we have to say (which is not allowed to be aired to TheBullion Desk readership):
In the meantime I don’t think I have seen TheBullionDesk’s Ross Norman editorialize more than a few times over the past years. Yet, he has done so twice in two days, both related to this WGC fund, James Turk and GATA. This is his latest:
Clearly, he must have realized what a BOMBSHELL this 15 tonnes of selling by the WGC fund prior to the gold collapse is and how shady it appears to be. Was the gold even there in the first place? Did the James Turk/GATA’s public querying panic the World Gold Council into making an adjustment of phantom inventory? This editorial by Norman is a preemptory effort to defuse the obvious and then blame the GATA camp for causing the selling.
This guy must truly be a banana head as to his assertions the GATA camp caused the major selling. Ah, to have such power! I am long the market as are most of the GATA camp. If I were publicly predicting a massive correction (like most everyone else), it would be one thing. However, this is not the case. I have remained a lonely steadfast bull above $450. James Turk has been in the short-term bullish camp too. What TheBullionDesk has done here is both dishonorable and a disgrace. It is also another example of our lack of freedom of the press when it comes to gold and how corrupt the gold market really is.
A fellow Café member puts all of this in perspective:
Bill: My understanding is that the GLD fund lost 15 tons of gold yesterday. It is looking more and more like GLD was created to further help in the management of the gold price. If the fund lost 15 tons of gold yesterday, it means that the stock was trading at a discount to the NAV of the fund. The fund was then forced to buyback the stock and sell the same amount of gold at the market. What we have here is an instrument that owns gold that can be forced to sell gold at the market anytime somebody (the powers that be) shorts or sells enough paper certificates to drive the stock price below the value of the gold in the fund. If the SEC is allowing naked shorting in this security, it makes it even easier to drive the value of the stock down to force the sale of the physical gold anytime they want. What a wonderful world. Jeff
By the way, I urge as much commentary to TheBullionDesk, financial press and authorities as possible. Please do so without using profanity. No reason for us to stoop to the level of the cabal and their allies.
Regarding the day’s gold action. Gold began to sink AS SOON AS Comex closed yesterday, quickly dropping to $350. By the time I went to sleep, gold was down $3/$4 dollar even though the dollar was up only slightly. The Gold Cartel’s orechestrated/blitzkrieg counter-attack had begun. When I woke up this morning, gold was already down $11. No $6 Rule on the downside.
The Gold Cartel has been setting up this assault for weeks and now appears to have used the new Gold ETF as a tool for their planned mugging, as a way to flush out the specs. Heretofore the cash market was too strong and dollar too weak to get the job done. One technical system after another is feeding on itself during this bloodbath, forcing longs to exit the market, for their money management rules if nothing else.
With the gold open interest so high, moves like this can get very ugly in the short-term. The goal of The Gold Cartel is always to demoralize gold investors. This flagrant bombing could go a long way to accomplishing their goals, especially after they have brutalized the gold shares the past month in anticipation of what was to come in the cash market.
As far as I am concerned, I knew what The Gold Cartel wanted to do – no change in modus operandi was in evidence anywhere. However, I DID NOT think they were going to be able to pull this sort of shenanigans off because the cash market has been so strong and everyone and their mother was short-term bearish. Just goes to show you that how difficult it is to fight the US Government and powerful Wall Street interests really is. However, it is critical to remind ourselves how far gold has come and where it is going. AND to keep in mind the bums are running out of physical to keep this up, which is why the price has risen $200 an ounce over a three year period.
To get a handle on the big picture and to pick your spirits up as to why The Gold Cartel’s demise is not far off, please read Reg Howe’s brilliant new piece at:
While the specs were massive sellers today, the trade was a massive buyer. Not a sell ticket out there from the cartel and dealer camp. For example, JP Morgan Chase bought 3,000 lots in the early going. The gold open interest must have shrunk dramatically.
Recently, I suggested that if The Gold Cartel did attack, $430 should hold, since gold broke out from that level. As it was a top for so long, this level now becomes an obvious support and buy point. Today’s low was $432.80. World buyers should be loading the boat anytime gold approaches anywhere near $430 in the days to come.
The dollar finished at 81.93, up only .67. The euro only dropped .99 to 133.32. The pound only dropped 1.27 to 193.30. The gold drubbing was all out of proportion vis-à-vis the currency losses. This is what happens when a bunch of crooks are running a market.
Get this, gold in euros fell to 326 today before closing around 328.
Newer Café members might now get some idea where some of my rage comes from. Having traded commodities for some time, I know market action. It could not be more obvious how the cabal caps price advances and then, when they are ready, sets up the specs to be flushed out. This is not the way a free market works, it is the way a managed market works. The good news for us is, they are running out of bullets to keep up this farce. It is ending even as they win the battle for $450. They are LOSING the war.
Kudos to GATA’s Mike Bolser who has insisted this what The Gold Cartel is up to. Now what? Mike, to his own admission, has been calling for this cabal onslaught since $419. Do those calling for a correction, buy ahead of $430, or wait for gold to be trounced back to the $400 level? If gold takes out $430 for more than a day or two, I will have to run up my flag. Gold should not stay even at these levels for too much longer. Once the margin call selling is out of the way, we should fly to the upside. This is the shot The Gold Cartel has been waiting for to cover their latest short positions. They sure did enough of it today. =================================================================
Btw, GLD's bullion holding as of tonight is 91.13 tons.
Total Net Asset Value Tonnes in the Trust updated between 4.15 p.m. and 4.30 p.m. NYT 12/08/2004 91.13
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