Cheuvreux - Credit Agricole Report on Gold Price Suppresion

Cheuvreux, the equity brokerage house of Credit Agricole, the huge French bank, this week distributed a 56-page report that completely endorses in detail the findings of the Gold Anti-Trust Action Committee (GATA) that the gold price has been surreptitiously suppressed by Western central banks and that those banks do not have the gold they claim to have.

This is possible one of the most important reports since this gold bull market began.
It is a historic document and will have enormous consequences.

Credit Agricole is the equivalent of a Bank of America in the US. The ranking of their research department in Europe is as follows:

The 2005 All-Europe Research Team ranking Credit Agricole:
No. 1 in France
No. 2 in the Netherlands
No. 3 in Belgium
No. 4 in Spain and Nordic countries
No. 5 in Germany

The 2005 All-Europe Research Team ranking
Cheuvreux is ranked No. 2 for Western European country research, with 6 rankings in the Top Five

Here is a quote from the Press Release put out by GATA regarding the Cheuvreux/Credit Agricole report:

The report, written by Cheuvreux's mining sector analyst in London,
Paul Mylchreest, is titled "Remonetization of Gold: Start Hoarding."
It repeatedly cites GATA by name and foresees an "unprecedented"
rise in the gold price, possibly accompanied by a spike to as much
as USD2,000.

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."

"No financial house in Europe could be more part of the
establishment than Credit Agricole," GATA Chairman Bill Murphy said
today, "and now its endorsement of GATA is circulating among other
big financial houses in Europe and around the world.

"This evokes what Adam Fleming, former chairman of Harmony Gold, now
chairman of Wits Gold, said at GATA's Gold Rush 21 conference in
Dawson City, Yukon Territory, Canada, last August, just hours before
the current sharp rally in gold began: that just a little investment
demand could take the central banks out of their gold 'in the blink
of an eye.'

"A LITTLE investment demand? Credit Agricole's brokerage house has
just declared: Start hoarding!"

Gold Rush 21, Murphy said, "was truly historic and decisive. It
gathered the world's top experts on gold to spell out, explain, and
publicize the gold price suppression scheme, and the conference
issued the Dawson Declaration, an appeal for free markets in the
precious metals as a matter of basic human rights."

A two-DVD set of the proceedings of the Gold Rush 21 conference,
including a dramatic 25-minute video summarizing the conference,
produced by the brilliant Vancouver videographer Trevor Johnston,
can be obtained through this Internet link:

Gold Rush 21


The Cheuvreux report on the gold market can be obtained at GATA's main Internet site here: http://www.gata.org/CheuvreuxGoldReport.pdf

"As for gold itself," Murphy said, "you can get some from coin and
bullion dealers, but as the Cheuvreux report gets around, there may
not be much left."

Source: GATA press release via Business Wire Thursday, February 2, 2006