“Fiat money has no place to go but gold,” the former Fed chairman said at the Council of Foreign Relations..

Greenspan vs. gold's anti-salesman
Submitted by cpowell on Thu, 2010-09-16 17:40. Section: Daily Dispatches

1:38p ET Thursday, September 16, 2010

Dear Friend of GATA and Gold:

An editorial in yesterday's New York Sun reports on remarks made about gold that day to the Council on Foreign Relations by former Chairman Alan Greenspan, who is quoted as saying:

-- "Fiat money has no place to go but gold."

-- And, "If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it."

The phrase "canary in the coal mine" is, coincidentally, the one used about gold for many years by GATA Chairman Bill Murphy. That Greenspan should pick up Murphy's phrasing may puzzle mainstream gold market analysts like Kitco's Jon Nadler, who insists that central banks have "no interest" in interfering with the gold market.

But of course over the years Greenspan many times has acknowledged central bank interest in the gold market and even central bank interest in manipulating the gold market, such as his famous testimony to Congress in July 1998 that "central banks stand ready to lease gold in increasing quantities should the price rise" (http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm) and his musing at the May 1993 meeting of the Federal Open Market Committee about the potential for central bank gold sales to change the psychology of the gold market, remarks disclosed and analyzed by GATA consultant Dimitri Speck here:

http://www.gata.org/node/8208

So with Greenspan's remarks this week to the Council on Foreign Relations, Nadler is once again contradicted about the most import factor in the gold market, the interest of central banks in controlling the price of a competitive currency that profoundly influences not only currency values but interest rates and the value of government bonds and equities generally.

You can find the New York Sun's editorial quoting Greenspan's latest remarks, headlined "Greenspan's Warning on Gold," here:

http://www.nysun.com/editorials/greenspans-warning-on-gold/87080/

Though Kitco is nominally in the business of retailing precious metal, Nadler has spent years as a sort of anti-salesman there. While he always maintains that investment portfolios should include gold, he never advocates buying it now. With Nadler there's no danger of being misled by the enthusiasm that infects real estate, where "now" is always the time to buy. With gold's anti-salesman, the time to buy has not yet arrived or is so far in the distant past that it might be remembered only by those who helped British Chancellor Gordon Brown empty the Bank of England's vaults to rescue the short-squeezed bullion banks.

Having perpetrated most of them, Greenspan knows all the tricks of central banking and is now an adviser to the Paulson & Co. hedge fund, which taken a huge position in gold. Apparently the anti-salesman didn't dissuade them from finding a time to buy.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Hinde Capital's Ben Davies On The Gold Market - ZeroHedge.com

http://www.zerohedge.com/article/hinde-capitals-ben-davies-gold-market

Hinde Capital's Ben Davies On The Gold Market Submitted by Tyler Durden on 07/17/2010

Zero Hedge recently posted several insightful pieces from Hinde Capital, among which the fund's presentation on the ECB's role as the European Commission's whore, and more recently, its presentation on Gold as the "currency of first resort" (recreated below). Last week, fund manager Ben Davies, who previously ran trading for RBS Greenwich Capital in London where he managed a macro portfolio, gave a must hear interview to King World News, in which Ben covers various in depth topics on the gold market and shares his views on "unimaginable price possibilities for the final culmination of the gold bull." Among the things covered are the Andrew Maguire whitsleblower case, David Einhorn's transition from paper to physical gold storage (he notes the storage and indemnification risk), on whether the US government actually owns the hold it represents to holding (noting the demonstrative busting of the very unimpressive Russian spy ring), Russian gold reserve accumulation, where he detours into noting that while gold was 25% of Russian reserve holdings in 2000, it has since plunged to just 5% even as the country has been hoarding gold indicative of the massive currency creation across the world - as currency reserves have grown globally by $7.5 trillion. Ben touches upon the recently popularized concept by Jim Rickards, about an alternative currency basket (aka a new China-Russia-Germany axis) backed by actual physical resources (a modified version of the much dreaded gold standard): "there will be a standardization, a basket of currencies somewhere in the world, that will then become a competing reserve currency very quickly overnight." Most relevantly, Davies answers what he thinks the fair price of gold is: "between $10,000 and $15,000."

Gold's Price Suppression? It's Undeniable!! by Adrian Douglas GATA Broad Member

https://marketforceanalysis.com/index_assets/Gold%20Price%20Suppression%20Undeniable.pdf

Gold Went Up Today $13

Gold Spike Could Reach $1,500 - John Meyer from Fairfax IS. Nick Parson from National Australia Bank

Wednesday, July 7, 2010
European Lenders start to use Gold Reserves to raise cash
The price of gold could go as high as $1,500 per ounce in a sudden spike, according to John Meyer from Fairfax IS. Nick Parson from National Australia Bank joined the discussion

Gold inches higher on mixed macroeconomic news Bullion notches 7th straight quarterly gain, rising 12% in the 2nd quarter

http://www.marketwatch.com/story/gold-slumps-on-optimism-over-europe-credit-2010-06-30

Gold inches higher on mixed macroeconomic news
Bullion notches 7th straight quarterly gain, rising 12% in the 2nd
Gold ends higher on safe-haven buying
Gold inches higher but loses 4% on week

SAN FRANCISCO (MarketWatch) -- Gold futures edged higher on Wednesday, enough to deliver another monthly gain and another quarterly rise for bullion, as investors weighed a disappointing jobs report against a hopeful read on manufacturing activity in the Chicago area.

Gold for August delivery added $3.50, or 0.3%, to $1,245.90 an ounce on the Comex division of the New York Mercantile Exchange.

Prices fluctuated earlier, reacting to the macroeconomic reports and the ups and downs for other commodities and the stock market.

Gold ended the second quarter up 12%, its seventh consecutive quarterly gains. It rose 1.7% in the first quarter of 2010, a string of wins going back to the third quarter of 2008, when it lost nearly 5%.

On the month, gold gained 2.5%, following gains of 3% in May and 6% in April. Gold lost 0.4% in March.

Some analysts expect more of the same for the metal going forward.


Buy UK Miners' Puts For Share Slide, Trader SaysEquities have been hit hard by a combination of weaker Chinese economic growth, dropping U.S. consumer confidence and bank concerns, but there's still time to buy put options. Kazakhmys September puts could work well, says a trader.
"Uncertainty is going to play in the hands of gold," said Richard Ross, a technical analyst at Auerbach Grayson in New York. "Gold should continue to be an over performer in the second half of the year ... benefitting from uncertainty and risk appetite. As investors look for alternative to currencies, the bullish argument for gold is intact."

Gold has had an impressive run in 2010, starting to vie for record-breaking levels in May. It set records on May 12, June 8 and $1,258.30 an ounce on June 18.

"The pullbacks are very shallow are buyers are stepping in, regardless of price," he said.

Gold had its fair share of pullbacks in early trading Wednesday, but concerns faded as the session progressed.

Earlier, the purchasing managers index for the Chicago region fell to 59.1% from 59.7%, but the slight drop was construed as positive as index levels remained high and the slight drop was in line with expectations. Readings over 50% indicate overall business expansion.

Also on Wednesday, payroll processor ADP said private-sector employment increased by 13,000 in June. Economists surveyed by MarketWatch had been expecting the ADP report to show a 65,000 increase. See Economic Report for more on GDP.

The U.S. dollar came under further pressure after the private payrolls data and never fully recovered.

The dollar index /quotes/comstock/11j!i:dxy0 (DXY 84.37, -0.29, -0.34%) , which compares the U.S. unit to a basket of six currencies, declined 0.1% to 85.94, getting a late-session boost after ratings agency Moody's Investors Service warned it could downgrade Spain's debt from Aaa, Moody's top grade.

Meanwhile, silver tracked gold higher, with the most-active September contract adding 39 cents to $18.70 an ounce.

Copper went back to gains. September copper, the most-active contract, added 2 cents, or 0.7%, to $2.95 a pound. Copper futures slid 5.1% on Tuesday after an economic indicator for China was revised down.

Meanwhile, the SPDR Gold Trust /quotes/comstock/13*!gld/quotes/nls/gld (GLD 118.49, +1.45, +1.24%) , the largest exchange-traded fund backed by gold, added 0.4%. The ETF's holdings rose to a fresh record Tuesday, the last day for which statistics are available. The fund reported holding 1,320 metric tons (1,455 short tons) of gold, against 1,316 metric tons earlier in the week.

The fund's assets have surpassed $50 billion, a 32% increase so far this year.

On Tuesday, gold rose modestly as stocks and other commodities fell sharply on fears China's economy may be slowing and as the Conference Board consumer-sentiment index fell to 52.9 in June, its lowest level since March

Claudia Assis is a San Francisco-based reporter for MarketWatch.

Nick Godt is MarketWatch's markets editor, based in New York

Morning Gold Fix: July 1, 2010

Morning Gold Fix: July 1, 2010 Submitted by Tyler Durden on 07/02/2010 08:12 -0500

http://www.zerohedge.com/article/morning-gold-fix-july-1-2010
Gold fell a staggering $36.30, or 3.5% per 100 troy ounces on Thursday. The dollar, another safe haven asset, dropped 2%. Some analysts have suggested gold’s move was the result of a large fund unwinding a position by selling gold and buying back the euro. Yesterday’s activity was the decisive battle for the time being between the “it’s a commodity crowd” versus the “it’s money stupid” folks. Put another way, if you believe that we are in a deflationary cycle (like us), and you believe that gold is a commodity only (not like us), then its price must go down relative to currency during deflationary meltdowns. If however you believe that Gold is not a commodity, and that it is money, then you believe it should hold value , or even appreciate in a deflationary spiral.

Gold & Silver Price 7-1-10 (Manipulation)

Gold & Silver Price 6-30-2010

Anytime precious metals price goes down, that is a good time to accumulate more. SO LOAD UP! Get ready for the greatest transfer of wealth in the history of the world.

Gold ETF Swells To Pass $50 Billion Milestone

Gold ETF Swells To Pass $50 Billion Milestone

By Carolyn Cui
The Wall Street Journal
Tuesday, June 29, 2010

http://blogs.wsj.com/marketbeat/2010/06/29/gold-etf-swells-to-pass-50-billion-milestone/

Amid all the market doom and gloom, the world's largest gold fund is quietly celebrating another major milestone: SPDR Gold Shares, an exchange-traded fund backed by physical bullion, has recently surpassed $50 billion in assets.

Driven by concerns over the euro zone sovereign debt crisis and a double-dip recession, investors have plowed $5.4 billion of net cash into the fund during the first five months. At the same time, gold prices have continued to set records -- gaining 13.4% so far this year -- helping boost the fund's size.

As of Monday's close, the fund boasts total assets under management of $53.3 billion.

The fund -- known as GLD because of its ticker symbol -- now hoards a total of 1,316.18 metric tons of gold and rivals most of the world's central banks. If GLD were a central bank, it would rank fifth -- just below France and above China.

Gold's safe-haven trait was in evidence again on Tuesday, as stocks were hammered globally and commodity markets were mostly a sea of red. Gold futures for July delivery eked out a gain of $3.8, or 0.3%, to settle at $1,242 per troy ounce at the Comex division of the Nymex.

Now investors are holding their breath to see whether the gold fund can pass out the $75.6 billion SPDR S&P 500 to become the world's largest ETF. The gap between the two ETFs -- both run by State Street Corp. -- has contracted sharply this year from $44.7 billion to $21.3 billion as gold prices have gained and stocks faltered.

Morning Gold Fix June 30, 2010 - ZeroHedge.com

Morning Gold Fix: June 30, 2010Submitted by Tyler Durden on 06/30/2010 08:26 -0500

http://www.zerohedge.com/article/morning-gold-fix-june-30-2010
Gold traded in a wide range on Tuesday as markets reacted to frightening news. Slowing growth from China shocked the market, driving oil prices more than $3 lower,dropping the Standard & Poor 500 ~30 handles and leaving gold and the dollar as the prime beneficiaries. More contagion fears from Europe and paltry consumer confidence reports didn’t help matters either. Gold sold as low as $1228 per 100 troy ounces on Tuesday before ultimately closing just over $1246, a $4.80 gain for the day.

Gold Price Manipulation Exposed By Jason Hamlin, on June 28th, 2010

http://www.goldstockbull.com/articles/gold-price-manipulation-exposed/
Gold Price Manipulation Exposed
By Jason Hamlin, on June 28th, 2010

GATA UPDATE!

Alex Cowie: Why gold is trending toward $27,163

Why central banks do care about gold: the connection to interest rates

1983 magazine profile shows BIS constantly intervening in gold market in secret


Ambrose Evans-Pritchard: RBS expects 'monster' money printing by Fed

By Ambrose Evans-Pritchard
The Telegraph, London

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7857595/RBS-tells-clients-to-prepare-for-monster-money-printing-by-the-Federal-Reserve.html

Adrian Douglas: Manipulative derivatives in gold and silver keep growing
By Adrian Douglas

The U.S. Treasury's Office of the Comptroller of the Currency (OCC) has just released the first-quarter 2010 bank derivatives report, which can be found here:

http://www.occ.gov/ftp/release/2010-71a.pdf

Second Gold Price Intervention In An Hour - ZeroHedge.com

Second Gold Price Intervention In An Hour
Submitted by Tyler Durden on 06/28/2010 11:26 -0500

There is smoke rising from the windows of the LBMA as the 270 Park boys have rarely been so busy creating gold short contracts out of thin air and selling them to all willing manipulators. Gold now down $22 after second major leg down on no news, and in fact as ML reiterates its $1,500 PT for gold by the end of 2011. In the meantime, the CHF is rising. The paper cartel is doing all it can to present the Swissie as the last ditch reserve currency. For now, it is succeeding. And as the SNB's balance sheet is pristine, at least compared to that of the US, UK and the ECB, and further considering that the only major asset class is accumulated EURs from all that intervention (now over), think what will happen to the CHF when the SNB decides to offload its €200 billion in EURs...

Market Got You Down? Don't Worry, JPMorgan And The LBMA Are Here To Punish Gold And Rip Stocks - ZeroHedge.com

http://www.zerohedge.com/article/market-got-you-down-dont-worry-jpmorgan-and-lbma-are-here-punish-gold-and-rip-stocks
Submitted by Tyler Durden on 06/28/2010 10:09 -0500

Gold at all time record highs? Goldman Sachs sending bankers to pitch a Radioschack LBO to gold? Can't have that - here comes the royal PM beatdown courtesy of Jamie Dimon's completely unflagrant gold plunge enforcement goons. Also, let's not forget - let's *not* forget, Dude - that keeping gold, a precious metal, for uh, domestic, you know, within the city - that (soon) aint (gonna be) legal either.

Euro Shorts Return Comercial Gold Net Short Positions Hit All Time Record High - ZeroHedge

http://www.zerohedge.com/article/eur-shorts-return-commercial-gold-net-short-positions-hit-all-time-record
In other COT news, gold fans will be happy to know that the number of commercial gross and net short positions in the precious metal has hit a new all time record of 475,678 gross and 288.916 net shorts. It is getting increasingly more expensive to the commercial players to preserve the price of gold at current levels, even with unlimited paper shorting capacity. As ETF's such as GLD accumulate increasingly more (hopefully real) gold inventory (yesterday's record number of 1,316 tonnes in GLD has not be updated for today yet), it will, in turn, become increasingly more difficult to push down gold price even as all the big players try to gold paper gold down.

Russia Today: The Max Keiser Report - Keiser Report №54: Markets! Finance! Scandal!

This time Max Keiser and co-host Stacy Herbert look at the latest scandals of a rating agency's threats, a two-tiered euro, and a rising gold price. In the second half of the show, Max talks to Gary Rivlin, author of Broke, USA. The Real PIGS are Freddie & Fannie says Max. MAX says you must own gold! Get as much as you can he says. It's a store of value in a deflationary spiral!!! Gold is going north of $5,000 proclaims Keiser.

David Morgan - Feels Confident in the Gold Rally Fundamentals Are Incredibly Strong

Why Gold Prices Pop NEW YORK (TheStreet) -- David Morgan, founder of Silver-Investor.com, believes investors can trust today's gold rally and he reveals the one thing he needs to see before gold hits its next leg up $1,300-1,350. Fri 06/25/10 11:42 AM EST -- Alix Steel Stocks in this video: SGOL | GDXJ | GLD | NEM | IAU | GDX | GG

Peter Schiff Bearish on US Treasuries - Peter Schiff on CNBC Fast Money: Interest Rates to Surge on China Move?

"Long term, US Treasuries have no way to go but down"

US Dollar Gold & Silver Price for June 24, 2010