So much for Gold being protection against inflation. Europeans holding Gold have seen it decrease in value by the same amount as the Euro, perhaps 10% in the last three years... ===============================================================
Well, hopefully, their day will come.... if not, I'll have to lower my LT target price down to three figures.
International Forecaster February, 2005 (#1) - Gold, Silver, Economy + More
By: Bob Chapman
GOLD, SILVER, PLATINUM, PALLADIUM AND DIAMONDS
It is our suspicion as we read the statistics that the gold ETF, Street Tracks, is shorting the gold market. In spite of their antics in behalf of the gold suppression cartel and our government, February is going to be a smashing month for gold and silver.
The gold correction has come to a close. Open contract interest peaked 371,000 contracts in November and at the end of last week, there were 258,000. This is a tremendous purging of speculative longs. A correction on this kind of volume, some 113,000 contracts, should have driven gold substantially lower, but that was not to be. The physical market simply overwhelmed the gold suppression cartel, but not until the criminals had done their damage. On the way back up, the first resistance will come at $428 to $432.00. Then it will test $455.00. All of the long liquidation has been put away by the physical buyers or covered by the shorts. On 113,000 contracts, the market on an historical basis should have fallen another $30 to $395.00, but the market was so strong at the $420 to $425 level that the remainder of the correction never took place. This is one strong market. The banksters must be saying, “What do we do next time, we are running out of gold?” Yes, those ignorant people in the third world that you so despise are buying it all. In addition, we are still looking at 60,000 shorts. Guess what they are going to have to do? You guessed it, cover. We do not believe they want to average their shorts seeing what we have seen and they have seen. Once the shorts begin the rest of their covers they will be chased all the way back up by the physicals and the spec longs reentering the fray. All those chartists and technicians who were signaling much lower prices will be wrong again. Get on the wagon, we have a long way to go. You cannot win if you do not play.
First we have Gordon Brown from London now German finance deputy Caio Koh-Weser tell the IMF they should sell gold to help the world’s poor. If these despicable characters, these hypocrites, really cared for the poor, they would call for the end of gold sales. These central bank sales to suppress gold prices have crippled African, South and Central America economies causing poverty and death. If gold prices were allowed to find their natural level in the market, gold would rise, incomes in these third world countries would rise, more jobs would be created and all those central banks that hold gold would be richer and far more stable. It is all a lie in order to bring about world government and remove the darker races from the face of the earth.
The Shanghai Gold Exchange has asked the central bank to be allowed to open up to foreign traders; “We want to invite qualified international banks and gold firms to directly conduct transactions on our exchange. The move will build more channels for us to integrate with the international gold market.” Presently there are 128 domestic traders on the gold exchange and approval will pave the way for the gold exchange to open individual gold investment businesses. Demand for gold in China will grow to over 660 tons annually over the next several years from 220 tons now.
Despite assurances to the contrary from the US Treasury Department, US law still appears to empower the President to seize gold and silver coins, bullion and shares of mining companies from private citizens. This is in violation of the Constitution via executive order. We told you earlier 12 USC Section 248 (N) had been repealed but we have learned Title 12, Chapter 2, Subchapter IV, Section 95 has not been repealed and it provides for confiscation. The excuse will always be a national emergency or the executive branch’s interpretation of war. What is time of war and hoarding? It is whatever our demented President says it is. Owners of gold and silver related assets have no rights. Take delivery of your coins and bullion and hide them.
In early December the open interest on silver was 125,104 contracts and at the end of January it had dropped to 96,662, a drop of 28,442 contracts or 22.7%. This means many long speculators have been stopped out and we believe this is very bullish for silver. Based upon recent action we believe silver could move up over $9.00 an ounce in its next rally.
The Indian physical gold market continues to soar. About 500kgs of gold were being imported into Bombay versus 300kg in December when prices were higher. Sales to Ahmedabad, which supplies Maharashta and Madbya Pradish, have doubled to 600kgs daily from a month ago.
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