'Gold Derivative Banking Crisis' Document Races Around World >From Bill Murphy <[EMAIL PROTECTED]> 6-8-00 "It ought to be quite the summer for gold!" Deutsche Bank, along with some help from Goldman Sachs, bashed gold early today taking it down almost $6, but the funds came in as buyers, taking it back up late in the day. August gold finished at $290, only down $1.80. Good ole $290 again. That is the price the manipulators have been defending for a couple of years now. They are at it again. Word to me was that some hedge funds were buying. This is very important news. I received a call today from Europe that the "Gold Derivative Banking Crisis" document is being distributed around the world at a furious pace and it is going to the highest levels of the banking world.This is not supposition. One of the most prominent bankers in Europe has ALREADY received 4 copies and "the document" was only made public 5 days ago. A futures broker was also called by a well known and signficant futures trader and queried the broker, "have you seen this report that is SO bullish for the gold price?" If the GATA document (which can be obtained for free at www.GATA.org) is circulating to this degree and to the right people, then it is only a matter of time before the big money crowd starts buying gold in earnest. The document is a mouthful to digest. But once the investment community realizes that the bullion banks are in a bind - big time - investors will make their move to buy gold. Historically, when banks - be it central or otherwise - have screwed up to this degree - the Soros' of the world have taken them on. They will most likely do so again. After all, the downside in gold is $20 to $30. The upside on this trade is $300 to $600. For that matter, just pick a number. The Office of the Controller of the Currency gold derivative numbers for Q1 were released yesterday. They show another big derivative build up as the new total of notional off-balance-sheet gold derivative contracts has risen to $95.5 billion from $87.6 billion. The big increase came at Chase Bank. I am sure Reg Howe, Mr. Derivative himself, is doing a report on this, so I will leave the details for him to present to you. What does this all mean? It is simple. There is too much gold being consumed at too cheap a price. There is a DEARTH of PHYSICAL GOLD. Only PAPER gold is holding down the price. The bullion banks, their clients and heavily hedged gold producers have an exposure that is frightening. Once that exposure is understood by serious money types, they will buy gold. CHECKMATE for the shorts as I mentioned yesterday. On a less dramatic note, crude oil roared back today after being down $1 to close up 20 cents on the day at $29.95 per barrel. The price of oil is headed up as is the price of gold. The dollar was weak all day too as it sank to 106.16. Firm oil price, a soft dollar and little physical gold around to meet current demand. What a combination! Thanks so much to so many of you out there that have been behind GATA, spreading the word on the building crisis in the gold market and sending the GATA document all over the world. The Gold Anti-Trust Action Committee is trying to find out what the gold leaving the New York Fed is all about and why it is being categorized in the trade data. A GATA committee member is doing yoeman work contacting the Customs people, the Commerce Department, the Census Bureau and the New York Fed. I thought you might like to see some of the kind of repartee going on behind the scenes: Bill, Reg, Chris -I just talked to a John Kohler at the Foreign Fiduciary and Financial Service Staff of the NY Fed. This is the gist of part of our conversation: "Do you not handle the paperwork for the gold transactions in and out of the Vault?" "I can't answer everything for reasons of security..." "Can't you tell me your own responsibilities or the responsibilities of your office? Do you not handle the paperwork when a foreign government instructs the Fed to physically transfer its gold to a dealer?" "Yes." "What Customs paperwork do you fill out?" "None." "Are you aware that once demonetized this is an import and should be declared as such?" Long silence. "Or if not demonetized, debited against current account?" "I can't tell you about our accounts for reasons of security." "I'm not asking about accounts, I'm asking about accounting! That's not security! Aren't you aware that there is a separate category in Customs for monetary gold?" Pause. "Yes." "And are you declaring such to Customs?" "No." "Why?" At which point Mr. Kohler excused himself, said other personnel were involved, and referred me to Susan McLaughlin, the staff director. Stay tuned... W Report on phone conversation w/Ms. Susan McLaughlin: She knows of no Customs forms that need be filed when the Fed transfers gold. She thinks it is the responsibility of someone else, either someone at the Fed or else the recipient's responsibility. She has been on the job less than two years and has no idea who at the Fed would be responsible and did not want to help me further. I had to pull my trump card, that "I am having dinner with my ex-professor, the Fed Governor, next week." Ms. McLaughlin has now received a written inquiry similar to the one I sent Ms. Boney yesterday and I think she will pursue the matter now in a timely fashion. W It ought to be quite the summer for gold! Midas www.LeMetropoleCafe.com/entrance.cfm All the best, Bill Murphy, Le Patron www.LeMetropoleCafe.com <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. 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