Gold Crash Manipulation ? Price Falls Below $800 an Ounce

[Mrs. Sharon B. Hodge]

GATA August 3, 2008 - Bill Murphy of GATA. org and LeMetropoleCafe. com discusses the economy and the gold and silver markets with Mike Maloney of GoldSilver. com (part 1 of 3)


part 2 of 3


part 3 of 3

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U.
S mint suspends gold coin sales; futures price is a fiction
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GATA - Gold Anti-Trust Action Committee
August 15, 2008

http://www. gata. org/node/6489

Dear Friend of GATA and Gold:

The US Mint has suspended sales of American Eagle gold coins and is refusing orders from dealers, two coin and bullion dealers confirmed Thursday

The mint's suspension of gold coin sales follows its tight rationing of sales of silver eagle coins, begun in May, when sales to the public were terminated and sales to the mint's 13 authorized dealers were tightly limited

Word of the mint's suspension of gold coin sales came from the American Precious Metals Exchange in Edmond, Oklahoma, (http://apmexdealer. blogspot. com/2008/08/news-alert-us-mint-suspen......) and from Centennial Precious Metals in Denver, Colorado

The suspension is overwhelming evidence that the futures contract price of gold on the commodities exchanges is substantially below the physical market price and that, indeed, the commodities exchanges are being used as GATA long has maintained -- as part of a massive scheme of manipulation of the precious metals, currency, and bond markets

Michael Kosares, proprietor of Centennial Precious Metals and host of its Internet bulletin board, the USAGold Forum (http://www. usagold. com/cpmforum/), explained Thursday:

"The US Mint buys direct from the refiners, and this suspension of gold eagle sales may be an indication that the supply line is already backing up, or that the mint expects that it will back up for the rest of the year. I wonder who would give up physical metal at these prices and under these circumstances except distressed sellers. The central banks are in a hunker-down mode as far as I can determine, and it's the mines that supply the refiners. So if the mint, which buys from the refiners, is having a difficult time locating metal, what does that tell you? I keep saying that we may get a surprising rubber-band effect later in the year when the pre-holiday/festival season kicks off in September/October. It may happen sooner. One of our indicators of approaching a bottom in gold is how many calls Centennial Precious Metals gets from our US-based Indian clientele. Here's a quote from my office's report to me at the end of the day today: 'Today was a good day. ... There must have been an Indian convention where someone was handing out USAGold business cards.
' That may give you a clue as to thinking in India proper and probably the rest of the Asian rim"

That is, through their agents the bullion banks the Western central banks, desperate to prop up a corrupt and totteringt financial system, have put gold so much on sale that even the US Mint can't find any now.
The price reported from the commodities markets is a fiction -- a scary one, perhaps, but a fiction no less

You can strike a blow at the market riggers who are defrauding the world -- just buy a little real metal.
The dealers listed at the bottom right of this dispatch will be glad to help you do it

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

(I take the following report from Bloomberg with a grain of salt)


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Goldman cuts gold view on dollar, overvaluation
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Reuters
Thu Aug 14, 2008

http://www. reuters. com/article/hotStocksNews/idUSN143218062008081...

NEW YORK (Reuters) - Goldman Sachs slashed its forecast on gold prices on Thursday, citing overvalued bullion and expected strength of the dollar against major currencies

The US brokerage said it lowered its 3-month gold outlook to $745 an ounce from its previous view of $890 an ounce

"The US dollar has recently begun to show initial signs of strength as the fundamental picture for the dollar has improved substantially in recent weeks," Goldman told clients in a research note

Goldman said that according to its model, gold had overshot its fair value over the past few weeks and the metal is now trading near its price estimate

Goldman also cut its gold forecast to $810 from $905 on a 6-month basis, and to $740 from $810 on a 12-month basis

The dollar has recently soared against the euro -- which fell below $1.
48 to its weakest level since February

Meanwhile, the price of gold has tumbled in the past 30 days. It traded at $812 an ounce on Thursday, sharply below its recent high of $987.
75 set on July 15

A higher greenback makes dollar-denominated gold more expensive for investors holding other currencies.
Gold is also used as a hedge against the falling US dollar

Last Thursday, UBS investment Bank also cut its one-month gold forecast by 15 percent to $850 an ounce from $1,000 an ounce, citing improving risk appetite, stronger equities and a firmer dollar

Last November, Goldman told investors to sell gold in 2008 to take advantage of the falling prices as the dollar steadied, and it named the strategy as one of its top 10 tips for this year

(Reporting by Frank Tang; Editing by Christian Wiessner)


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Gold Drops Below $800 an Ounce in Asia as Dollar Strengthens
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Bloomberg News
By Dave McCombs

http://www. bloomberg. com/apps/news?pid=20601087&sid=aUvoAunrr...

Aug 15, 2008 (Bloomberg) -- Gold tumbled below $800 an ounce in Asian trading as the dollar headed for its longest winning streak in more than two years, reducing the appeal of the metal as an alternative investment to US assets

Oil, gold, copper and corn have plunged from records this year as the dollar strengthened and concern mounted that slower global economic growth will cut demand for raw materials.
Silver and platinum also tumbled today amid increasing expectations the Federal Reserve won't cut interest rates

....It's really a reshuffle of assets away from commodities, a sector rotation,'' Jon Nadler, a senior analyst at Kitco Minerals & Metals Inc. in Montreal, said in a telephone interview today. ....Investors see that the Fed is resolved to fight inflation by hiking rates,'' which may help push up the dollar, he said

Gold for immediate delivery fell as much as $17.15 to $789.47 an ounce, a 2.1 percent decline from yesterday in New York and the lowest since Dec. 17. The metal traded at $796.72 an ounce at 10:22 a.m.
in Tokyo

Immediate-delivery silver plunged 12.1 percent to $12.46 an ounce, the lowest since Sept. 14, before trading at $12.
98

Platinum for June delivery dropped 5.4 percent to 5,104 yen a gram ($1,445 an ounce) at 10:02 a.m.
local time on the Tokyo Commodity Exchange

The dollar climbed to a 5 1/2-month high versus the European single currency, heading for a fifth weekly gain, on speculation a drop in oil prices will support economic growth in the US, the world's largest consumer of the fuel

The dollar gained to $1.4762, the strongest since Feb. 21, before trading at $1.4773 as of 9:50 a.m. in Tokyo from $1.
4826 yesterday

To contact the reporter for this story: Dave McCombs in Tokyo at [e-mail]