Thursday, June 30, 2005

Gold and Silver ETF

Post by Ron Lutka

What is REALLY DANGEROUS about these Gold and Silver ETFs in my opinion is that a certain class of entity is being inserted between the gold ans silver and the investing public. And that class of entity is registered broker-dealers (called "participants" in the silver and gold ETF) who can be associated with bullion banks, both of whom have historically been anti-gold and anti-silver and pro fiat and other paper.

From the Registration Statement

"The trust issues and redeems iShares only in blocks of 50,000 or integral multiples thereof. A block of 50,000 iShares called a "Basket". These transactions take place in exchange for silver. Only registered broker-dealers that become authorized participants by entering into a contract with the sponsor and the trustee may purchase or redeem Baskets. "

There are many items that are screaming flags as to potential evil intentions behind certain silver and gold ETFs and some of those screaming flags are:

1) players involved are in my opinion anti-gold and anti-silver;

2) the investing public is being eliminated from the physical gold and silver markets by way of these ETFs because the investing public CANNOT purchase a block of 50,000 iShares called a "Basket". They might not even have the right to buy or sell a Basket if they could afford to buy one as this might be a right solely of the "participants" whom are broker-dealers. Regardless, the affordability issue eliminates almost all of us.

The goal of these ETFs might be to replace the gold and silver futures exchanges as was hinted at by Lassonde a while back. If successful the investing public will not be part of the paper and physical gold and silver price discovery process as they presently are to a degree at the COMEX and CBOT. And if the COMEX and CBOT gold and silver trading is closed down the investing public will be excluded from accessing this physical source of metal which would likely be transferred to back the silve an gold ETF. Neat trick, huh?

3) the ETFs are far more complex than what they need to be to accomplish the stated effect for investors. Why not follow the simple Central Fund of Canada model? Answer: Because of 2) above.


Friday, June 24, 2005


Jim Puplava of has written an article in which he predicts the US is heading for Hyperinflation.

Jim explains how there is a current major disconnect between what is being experienced in real life on a day-to-day basis with consumers seeing their living costs go up, personal incomes failing to keep pace with the rise in the cost of living and what we are told about inflation that is published in official inflation figures.

Wikipedia defines hyperinflation as a condition in which prices increase extremely rapidly as a currency loses its value. It is inflation out of control. Formally, it is "an inflationary cycle without any tendency towards equilibrium."

Jim Provides the following ten reasons why he predicts Hyperinflation:

1. Global oil production will peak between 2005-2008. Economic growth ceases to exist as global economies and markets are thrown into chaos and turmoil.

2. The War on Terror escalates into a resource war over oil pitting the great powers the US, China, and Russia in a replay of “The Great Game.”

3. Debt creation and monetization hyperinflates as the government’s deficit spirals out of control with a war and a depression.

4. Foreigners begin to bail out of the dollar setting off a dollar crash.

5. The US puts in place capital controls to corral US and domestic money. The War on Terror will be given as the reason.

6. The government takes over GSEs owning most American mortgages.

7. A national mortgage bailout bill is passed lengthening mortgage payments in an effort to forestall debt defaults. A new restructuring agency will be set up to repurchase impaired mortgages from the banking system and renegotiate terms of the debt to avoid default. The 100-year mortgage is born.

8. A national retirement security act is passed forcing private pensions to buy long-dated zero-coupon government bonds that will be inflated away. The reason given will be for plan protection against bear markets.

9. As the US economy goes into a hyperinflationary depression the rest of the world’s economies follow suit. Money printing on a grand scale occurs in western and Asian economies as governments wrestle and try to satisfy the demands of a social welfare state and an angry, aging populace.

10. As governments hyperinflate and debase their currencies, gold will take on its true role as money rising in value against all currencies. The world will move towards a global currency backed by gold.

Read the rest of Jim Puplava's article on hyperinflation.

Read Thayer Watkins of SAN JOSÉ State University Economics Department, history of past hyperflation episodes in countries around the world.

Don't delay, buy gold today and protect yourself and your family from the coming Hyperinflation.

Tuesday, June 21, 2005

Central Bank Gold Sales

On the 20th of June Bloomberg ran an article that suggested the gold price may rise on speculation Central Banks will reduce gold sales.

15 European central banks agreed to limit gold sales and gold lending to 500 tons a year for the next 5 years in Septemeber last year. European central banks had already sold 346 tons of gold by April 1 2005.

That is about 13 tons a week, London-based researcher GFMS Ltd. estimates.

"If that rate of gold sales by Central banks was maintained, Central Banks that accounted for most of a 23 percent rise in gold supply in the first quarter will reach their sales target this week" Claudia Carpenter of Bloomberg said.

``They cannot keep selling at this rate,'' said Ian MacDonald, managing director of precious metals trading in New York for International Assets Holding Corp. ``We should really be asking where the gold is going to come from to meet growing investor demand.''

``The central bank issue is an important one for the next six months,'' said William O'Neill, a partner at Logic Advisors LLC, a commodity consulting company in New Jersey. Even if the sales target isn't met this week, the central banks ``will be selling less in coming weeks,'' he said.

Claudia Carpenter of Bloomberg said "Central banks are the biggest holders of gold, with 31,822 tons, or 1 billion ounces, in their vaults at the end of 2003, according to the International Monetary Fund."

Bill Murphey of GATA.ORG points out that the 31,822 tons or 1 billion ounces in central bank vaults figure assumes that the central banks have not sold any gold in close to a decade, nor lent/swapped any out.

Murphey says "this is a LUDICROUS number, yet the one bandied about so often by the establishment. The central banks are lucky if they have 14,000 tonnes left. The discrepancy is astounding and a featured reason WHY GATA has been silenced by those allied with the powerful Gold Cartel. For the world to know what GATA knows and believe it, there would be a gold buying panic."

"The price of gold will soar to ration future demand" says Murphey.

Murphey highlights that gold demand exceeds gold mine and scrap gold supply by more than 1500 tonnes per year. GATA suggests that this shortfall is filled by Central Bank Gold Sales.

Friday, June 17, 2005

Peter Petersen - Deficits and Serious Concerns for US Servicing Debt

Jim Sinclair described in the New York Times recently as one of the most famous gold speculators, whose website is, has written about an interview on TV with Mr. Peter G. Petersen.

Sinclair describes Mr. Peterson as "The Chairman and one of the founders of the outrageously successful Blackstone Group. He is Chairman of the Council of Foreign Relations, founding Chairman of the Institute of International Economics (Washington DC), founding President of the Concord Coalition. Mr. Peterson was the Co-Chair of the Conference Board Commission on Public Trust and Private enterprises (Co-Chaired by John Snow, currently Secretary of the US Treasury). He was Chairman of the Federal Reserve Bank of New York from 2000 to 2004."

Sinclair says "Mr. Peterson spoke of his close and personal relationship with Federal Reserve Chairman Greenspan. He made many extremely important points in his conversation:

1. He spoke of three serious deficits, the Budget Deficit, Trade Deficit and what he considered to be the most important, the Current Account Deficit.

2. He added to these deficits what he considered to be just as important, the deficit in personal savings by US consumers.

3. He pointed out that a cumulative Budget Deficit of US$7 trillion was looming in this generation.

4. He spoke of Chairman Volcker's opinion on a lower US dollar.

5. He spoke of a prestigious group of 12 people and their views on the US dollar of which 11 expect it to go between 10 and 15 percentage points lower.

6. He pointed out that a Current Account Deficit running at 6 ½ percent of GDP must be considered as another cumulative item that will result in a foreign debt equal to 125% of a single year's GDP.

7. He pointed out that the servicing cost of this debt is a factor and possibly the most serious concern.

8. He concluded with the comment that expectation that international entities will continue to support this growth and the cumulative nature of the Current Account Deficit by purchasing US debt is not necessarily guaranteed."

Sinclair says "Petersen's interview was the most measured, articulate, non emotional sound analysis of the various complex conditions leading towards an epiphany for investors that will impact markets with the significance of Tsuami from 2006 to 2008 and then from 2009 to 2012."

Sinclair says the gold bull markets major move will be driven by the establishment
and that establishment will listen to Mr. Peterson.

Sinclar says "The move toward gold by the establishment big guns has started." and that in his opinion, 2006 to 2008 will be best years ever for the gold price.

Sinclair warns not to wait until 2006 to buy gold or you will find you are much too late. He says "things always start quietly before it becomes apparent. People trying to time the gold market perfectly are going to be left behind in the comet's debris trail."

Gold in Swiss Franks, Yen, Euro and Deutsche Marks Breaks Out!

The most bullish parts of this gold bull market is the price of gold breaking out in currencies other than the US Dollar, such as the Euro, Yen, Swiss Franks, British Pounds and Rubbles.

See our previous article on the price of gold in Euros breaking out.

HSBC said on the 15th of June 2005:

"gold has outperformed most other major currencies, suggesting the recent strength is not just a rejection of the Dollar and the Euro, but is perhaps the beginnings of a more sustained independence from the currency markets. Specifically:

Historical Gold price in Swiss Francs
- yesterday’s high of CHF548/oz was the highest level since April 1994.

Historical Gold Price in Japanese Yen
- the overnight high of Y1,506/g was the highest level since August 1992.

Historical Gold Price in British Pounds
- the high of £238/oz was just £3/oz off the nine year high of £241/oz seen in September 2003."

Historical Gold Price in Deutsche Marks
James Turk the founder of says "To breakout from this pattern, gold needs to close above Dm 706.31, the price it reached on July 30, 1993. This price equals €361.13. We are almost at that level...and I expect this breakout will happen soon."

Historical Gold Price in Indian Rupees

Dan Norcini reported in said "What we are now seeing is gold asserting its true, historic function as THE PREMIER CURRENCY of choice. Investor confidence in both the Euro and the Yen is weakening as their respective economies continue to stagnate."

Norcini describes three Phases of the Gold Bull Market:

Phase 1 of the Gold Bull market was marked by the US Dollar price of gold moving up and breaking through important technical and psychological levels, most notably the $400 mark.

Historical Gold Price in US Dollars

Phase 2 should consist of gold price moving up against the other two major currencies, the Euro and the Yen. Norcini says "judging by Euro gold price of 350 being obliterated and now the Yen Gold Price of 468 giving way as well. This should shortly see the price of gold moving up against the other major currencies; the Canadian Dollars, the Swiss Francs, and the Australian Dollars as well as others and going on to make new multi-year highs in terms of those respective currencies.

Phase 3 will be the rapid acceleration or blow off phase.

We are now entering Phase 2 of the Gold Bull Market and now is the time to buy gold. It is the investment opportunity of a life time.

The gold price per gram charts in this article are from
Where you can open a free account and buy gold in minutes.

Wednesday, June 08, 2005

James Sinclair Gold Interview in New York Times

On June 5, the New York Times published an interview with James Sinclair of titled:

"Believing (and Believing and Believing) in Bullion" by Stephan Metcalf

James says "some of the main players in the gold market including myself. I have taken the liberty of excerpting the section about me for the Gold Community and I am also including a link so you can read the story in its entirety."

We have posted that excerpt here for Gold Price News readers, you can read the full article at the New York Times here.

Mr. James Sinclair of

Among the most famous gold speculators, Sinclair proclaimed in the 70's that gold, then at $150 a troy ounce, would hit $900. (It eventually peaked at $887.50; he sold his position the following day, for a profit of more than $15 million.) Then, with some analysts predicting that gold could go as high as $2,000, he declared the gold bull market dead. (Within months, he was proved right.) In 2001, with gold near its bear-market lows, Sinclair told Forbes magazine that it could hit $430. On the day I met him, gold was trading at $434.

Sinclair remains a star attraction at gold conferences around the world, but in the 1980's he sold his brokerage firm and took his wife and two of his daughters to the foothills of the Berkshires, where he lives on a 40-acre equestrian compound featuring its own 9,000-gallon water system, its own electrical system and a shooting range. (''I like to cut a target every now and again,'' he told me. ''Get out my aggressions.'')

Sinclair's private office sports the typical C.E.O. blandishments -- a massive mahogany desk, a wall-mounted flat-panel computer monitor -- but also a profusion of religious items. Incense always burns, and a temple gong sits in the corner, along with a prominently displayed statue of Ganesh. Behind the desk there is a full-color portrait of Bhagavan Sri Sathya Baba, whom Sinclair visits frequently in India. ''I am an enquiring soul,'' he replied, when I asked if he was Hindu. ''All the great minds have wandered the Indus Valley.''

Perhaps because he has found spiritual satisfaction elsewhere, Sinclair regards gold with dispassion. ''Gold is not to be loved or hated, accepted or refused,'' he said. ''Gold is not barbaric or angelic. It fixes nothing in itself. But it is a mirror.''

Sinclair sees the health of the dollar reflected in the price of gold, and the health of the dollar is now in foreign hands. ''We're not talking about what I want, but about what is,'' he told me, as he picked through a tuna salad. ''If we go over $529, that is not good news,'' he said, referring to the price of gold. ''Anyone cheering for a high price of gold should get on Prozac.''

Sinclair says that when the dollar acts successfully as the world's currency, gold naturally returns to its status as a mere commodity. In the parlance, it demonetizes -- it loses out to the dollar as the world's reserve currency. But a mismanaged dollar, he said, could cause gold to remonetize. Our world would look very different then.

''The first sign is the foreign banks will diversify out of dollars. Then they will cease buying dollars. And then they will sell them.'' What could happen then? ''Stagflation. . . . Expansion of U.S. federal deficit. Expenses rise and incomes drop.'' Are we talking apocalypse? ''The most likely crisis is the collapse in the common stock of the operating entity. In this case, the operating entity is the United States, and the common stock is its currency.''

We had made our way up a hill, to Sinclair's koi pond and its accompanying meditation gazebo. As if on cue, what appeared to be a military airplane flew across the sky. ''That's carrying Iraqi supplies,'' Sinclair told me. ''We have war and monetary easing at the same time,'' he said, shaking his head. ''Everything has its season. That includes gold. Do I have a bet on gold? You know I do. Will I one day unravel that bet? You know I will.''

Why Gold Price Correction is Over

Dan Norcini says "I have received more than a few emails lately asking why I have been relatively quiet in regards to my writings. The short answer is that I, like many others in the Gold Community, have been patiently waiting for gold to give some sort of evidence that its corrective action was finished and that it was through going down."

Norcini says "In my opinion, the signals point to gold’s time being at hand once again. I have several reasons for stating so and will list them one by one and let the reader judge for his or herself. Please keep in mind that I am a trader and thus look for a preponderance of weight to favor a trade before committing 100% to it. The past week or so there have been indications that gold was base building and laying a floor for the next leg upward but it was a bit too premature for all but the most nimble traders to commit in a big way to this market as it does have a nasty habit of shaking would-be bulls and kicking them around a bit before settling down and behaving properly."

Read all of Dan Norcini comments and view his charts here.

Tuesday, June 07, 2005

Gold Price of $700 predicted for 2008

"The price of gold is set to rocket", says Andisa gold analyst Dr David Davis.

Davis's report titled 'A trilogy of gold - an exploration in three parts', suggests that the gold price will reach $1200 an ounce by the end of 2015.

David Davis predicts the gold price will be $700 an ounce by 2008, a year later he preidicts it will climb to $750 an ounce and another $50 an ounce to reach $800 an ounce in 2010.

Nicola Mawson Senior Online Writer with says on "These predictions answer the question blazing through the industry currently: what will gold sell at and what will shares be worth in 10 to 15 years' time."

Davis looks at the current gold price, historical gold price trends in mining operations and historical supply and demand patterns in the 55-page report.

Davis says supply is falling behind demand and fewer reserves are being mined as resources diminish.

"Not a new phenomenon, but previously this trend has been masked by Central bank sales and producer hedging - a dying practice" says Nicola Mawson.

When this ceases, says Davis, economies of the age-old supply/demand equation will take over and flame the price of gold.

Davis says this will mean investors having to be in the right place at the right time to make money buying gold.

Read more of Davis's analysis and predictions for US Dollar weakness, declining gold production and the future gold price.

Sunday, June 05, 2005

Julian Robertson Interview CNBC Economic Collapse

Al Martin of has written an article about an interview with Julian Robertson on CNBC on the 24th of May 2004.

Read the full story here: Global Econmic Collapse

Friday, June 03, 2005

Global Economic Collapse

Al Martin of has written an article about an interview on CNBC with the renowned funds manager Julian Robertson. Julian Robertson formerly ran Tiger Management, the world's largest hedge fund. Al Martin says the interview took place on the 24th of May 2004.

Al Martin said "‘Never Been Wrong’ Robertson. He has predicted every economic cycle, every debacle, every bull market, and every bear market. Of course, he’s a very old man now. But his reputation on the Street is like nothing you could imagine. When the segment of his interview was through, his comments alone took the Dow Jones down 50 points. Just on his comments alone. That’s how powerful this man’s reputation is."

Al Martin quotes Julian Robertson talking about a coming global economic collapse he predicts.

You can read that article at

We have found an interview from the 24th of May with Julian Robertson
on CNBC which is very different to the one that is quoted on

Watch Julian Robertson Interview on CNBC posted at the Wall Street Journal apparently from the 24th of May

Here is some of what Julian Robertson said in the video :

He said "I am more disturbed than I have ever been in my investment
life about what lies ahead, the American consumer has driven the world
and the American consumer is out of gas and he is also involved in a
housing bubble that puts his very dwelling at risk, and it worries me
about what lies ahead because I don't see any easy way out.

I really don't know. I think that there will be an effort made to inflate
our way out. I think that effort is being made, has been made and
that's why the dollar has weakened so much against other

Perhaps Al Martin watched a different interview?

If you want some solid information on the real potential for a Global
Economic Collapse
vist the following websites:

You can read more about the coming Perfect Financial Storm at

You can read more about the coming collapse of the US DOLLAR at

You can read more about the American Consumer running out of gas at

For current gold prices in 23 national currencies in grams, ounces and kilos, gold commentary and information on how to buy gold visit

Euro Gold Price

As predicted in (Gold Price to Increase on Serious Euro Concerns) posted in the the Gold Price News on the 14th of April 2005, the gold price in Euros has broken out since the French voted no to the Euro constitution.

The Euro gold price closed at $345.76 on on Friday the 3rd of June, a price not seen since the 11th of November 2004, when the price of gold in Euros was 343.221. The gold price was trading near $460 in U.S. Dollars at the time.

"The next resistance for gold in Euros is the April 2004 high at 347.446. If gold can breach that level in a convincing fashion, the major high near 351.50 is within reach. That is a big, big deal if that level can be broken." said Bill Murphy of

James Turk of said "Is gold about to experience a cascading series of breakouts against the major currencies? It is possible, and the strength that we are seeing in gold’s price against other currencies – most notably the euro – is very encouraging, bullish news." James provides more charts and commentary on the break out of gold in rand and pounds here.

Historical Euro Gold Price Charts

1 year Euro Gold Price in grams

5 year Euro Gold Price in grams

10 year Euro Gold Price in grams

The charts above are from where
you can open a free account and buy gold in minutes.

Thursday, June 02, 2005

Alan Greenspan on Gold Price Manipulation

Congressman Ron Paul of Texas asking Alan Greenspan the US Federal Reserve Chairman about gold price manipulation by the western central banks:

Dr. Ron Paul:
Even if the central banks, who are the major holders of gold, are willing to sell gold in order to manipulate the price or hold the price at a certain level? We are not on a gold standard, so what would the motivation be?

Mr. Alan Greenspan: They are not doing it for purposes of fixing the gold price. They are looking for it to reduce their stock of gold when they have sold on the grounds that: one, it costs to store the gold; and, two, it didn't obtain any interest. So they perceived it to be a poor asset to hold. But the purpose was not to manipulate the price of gold.

Why is Alan Greenspan speaking on behalf of foreign central banks as to what those countries' motivations are for selling their gold?

Why is Alan Greenspan actually stating on their behalf that their purpose in doing so is not to control the price of gold?

How does he have such total knowledge of the actions of Foreign Central banks?

Why does he have the authority to testify before congress as to the thinking and motivation of foreign central banks' activities in the gold market?

Not to mention act in effect as their defense counsel.

The private Gold Antitrust Action Committee GATA has uncovered evidence suggesting that the Federal Reserve and the Treasury department, operating through the Exchange-Stabilization fund and in cooperation with the International Monetary Fund, have been systematically working to deflate the price of gold. Because rising gold prices are seen by investors as a barometer of inflation, the Fed has purportedly suppressed prices to disguise the true nature of the financial bubble of the 1990s.

Congressman Ron Paul said in a Media Release in 2002 "The Fed wants all of us to think the stock market is not overvalued, and that credit and monetary expansion can create lasting prosperity" he went on to say "gold prices should always serve as an unbiased indicator of the true health of world markets."