Gold Battling Price
Fixers And Manipulators
To Break Into A Truly
Free Market
The International Harry Schultz Letter
(Editor's Note: HSL is written by the world's highest-paid investment consultant, Chevalier Harry Schultz (Guinness Book of Records- International Editions: 1981-1997). The HSL was the leading gold advocate in the early 1970s, when it called the Great Gold Bull market. Interestingly, HSL is again bullish on gold.)
"The premier international financial, socio, geopolitical & philosophical newsletter"
Glitters a Gain! Oh, how sweet it is! After years of immoral & illegal manipulations by bullion dealers, bullion banks & bullion brokers, aided by certain govts, gold broke loose. The price-fixers haven't given up; they still don't want a free mkt for gold, but they know they're in for a battle royal. There is so much to tell I'm in the same position as with Y2K reports. I've got 1000 pages of notes, but limited space, so (as with Y2K) I'll suggest (below) how U can get more info & how to keep up on the daily gold in-fighting. It's a very exciting, bloody battlefield I assure U. The stage was being set for a price breakout before the Euro central banks (CB) made their dramatic announcement that CB's would freeze/limit gold sales & halt gold loans for 5 yrs. The news ricocheted around the world in minutes & bullion burst its 20-year shackles. But, as Sunil Madhok, of UAE, says on , "The CB's didn't do this to help gold bulls. But they didn't want the bears slain (so they permitted some sales). They had no option. Speculators (eg, NY bullion banks & the anti-gold mafia) were hammering gold with no regard to the massive supply/demand gap. If CB's hadn't acted, the imbalances would have proven catastrophic (in light of the huge short position)." Pressure was also being brought to bear on Euro govts by developing gold-producing nations. And GATA was revealing the illicit tactics of the dealers/bankers. UK's fluky gold sale was being exposed as a political favour. Blair was in hot water.
Gold mines who hedged (sold gold forward or bought puts) heavily, found themselves in trouble, as we forecast, & we don't bleed for them; we said it was like eating your young. Some were "forced" into it by bullion banks who threatened them with lower credit rating if they didn't. Blackmail! Shows how vicious the greedy price-fixers are. Ashanti Gold was example. Gold rose $8, but stock fell $4 same day. Margin calls killed them, only avoiding bankruptcy, so far, via the bankers "Red Cross." Goldman Sachs was Ashanti's "brilliant" dealer who got them short over their head. Barrick is another over-hedged mine & stock is under-performing non-hedgers. Stockholders screaming for true mkt exposure info.
The price-fixers keep feeding the press & producers misinformation about the size of the gold short position, hoping to jawbone the price down. Ted Arnold apparently gets paid for trashing gold, as he has for years. Other mistaken info (intentional or otherwise) comes from Chase, Deutsche Bank, JP Morgan, AIG, Goldman, says Bill Murphy of GATA (Gold Anti-Trust Assn) who calls this "one of the great financial scandals of all time." CNBC/CNN give lots free airtime to gold bad-mouthers, but won't let Murphy speak. Of course, TV is owned by insiders. Freedom of the press has always meant freedom for insiders to press their case.
For true stats on gold mkt, contact John Hathaway at the Toqueville Gold Fund & Caeser Bryan at Gabelli Gold Fund. For daily update on the gold war, download free at popular , & subscribe to GATA website, the attack force for gold freedom at or US fax: 413.528.6903. GATA also needs contributions for its anti-trust fight against price-fixers. 2 Hslms sent big cash last mo. Thank U. Need more. If U want goldfreedom & goldhigher, send $. Murphy foresees $600 gold a bit later. Says Fed is biggest worry; the price-fixers want Fed to intervene; report is they already have, selling gold futures. But gold genie is out of bottle, & aside from setbacks, it's unlikely the gold bull mkt can be stopped. As a chartist I note, basis London PM fix, a pullback to 289 would be a 50% normal technical retracement of recent up-swing & a great buy-more spot. But U'd have to place orders now, not after the event. Traders hope for pullback to 300-310. One day soon U'll wake up to a $100 overnight rise, so don't be naked out. Producer buy-backs are coming. As with Y2K, I've only used 10% of my notes, so please access gold fax/web sites. The gold war has barely begun. We'll win/lose battles, but win the war & get a free gold price. PS: Bill Gates bought 10% of a silver company. Silver will be exploding also. :-)
Harry Schultz
http://www.ihsl.com < Tel +32 (for Belgium) 16 533 684 -- Fax +32 16 535 777 Postal address: HSL, PO Box 622, CH-1001 Lausanne, Switzerland
Also by Harry Schultz