Wednesday, February 01, 2006

Go GATA!! and Start Hoarding!!

I have just watched a most superb documentary called Gold Rush 21 by the Gold Anti-Trust Action Committee or GATA.

I have been buying Gold since March of 2003 and have been following GATA for at least a year before that. I can't congratulate Bill Murphy and Chris Powell enough on a fantastic DVD presentation that not only makes a superb case for exactly how the central banksters have been artifically supressing the price of Gold BUT an equally as good case for the economic importance of Gold to society as honest money! I urge everyone to purchase this video IMMEDIATELY before you see more of your wealth depreciated away by crappy-ass fiat paper currency.

The bombs have already started falling on the central banks with Cheuvreux, The equity broking arm of Crédit Agricole publishing a report entitled: Remonetisation of Gold: Start Hoarding

The report's executive summary says:

"We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz and see the possibility of a spike to USD2,000, or higher. Covert selling (via central bank lending) has artificially depressed the price for a decade.

"Central banks have 10,000-15,000 tonnes of gold less than their officially reported reserves of 31,000.
This gold has been lent to bullion banks and their counterparties and has already been sold for jewelry, etc. Non-gold producers account for most and may be unable to cover shorts without causing a spike in the gold price.

"There is a supply deficit in the gold market of around 1,300 tonnes per year before any central bank selling and perhaps 700 tonnes per year after 'official' sales but before covert selling. This compares with world gold mine output of only 2,500 tonnes per year. Some central banks, notably Russia, are starting to buy gold.

"Gold acts as an early warning of potential crisis such rising inflationary/deflationary pressures and general confidence in paper currency, especially the U.S. dollar.
A strongly rising gold price could have severe consequences for U.S. monetary policy and the U.S. dollar. History suggests that gold always wins against an inflating paper currency (that is, one subject to excessive supply growth).

"Gold and gold mining stocks are poised for an unprecedented rise in prices and profile. Investors in UK/European equities need to assess the implications for their portfolios. ..."

The Cheuvreux/Credit Agricole report details GATA's findings in Chapter IV, "Analysis of the Gold Market," and concurs in them as "broadly correct."

The complete Cheuvreux report can be found here:

I would also recommend:
The Role of Gold in the unified GCC Currency by the Gulf Research Center
Not Free, Not Fair published by Sprott Asset Management.

I highly recommend getting some physical gold ASAP!!! Once you have the physical then you can think about rolling your dice with the paper gold but given the very real possibility of a complete collapse of the dollar I don't recommend trusting your family's life to paper promises alone... Etienne