Nobody''s home in commodities trading regulation in the United States


Excerpt from "Midas" commentary
for Thursday, August 26, 2004,

Copyright 2004,
Used by permission

* * *


By Bill Murphy
Thursday, August 26, 2004

Gold $407.10 down $1
Silver $6.67 up 6 cents

* * *

"All life demands struggle. Those who have everything
given to them become lazy, selfish, and insensitive to
the real values of life. The very striving and hard work
that we so constantly try to avoid are the major building
blocks in the person we are today." -- Ralph Ransom.

* * *

As mentioned in last evening's commentary, the Gold
Cartel did try and influence today's trading by taking
gold down $2 immediately on the Access reopen. Yet
they were surprised by additional strong physical
buying in early European trading. So it was a pleasant
change of pace to wake up this morning and see gold
due $1.20 higher.

Alas, the louses in the cabal were not to be deterred
and would continue their efforts to cap the gold price.
In the early Comex going UBS showed up as a major
buyer again but, like yesterday Goldman Sachs showed
up as a substantial seller. Same old, same old. With
today being a Comex option expiry, it will surprise
no one in our camp that the Gold Cartel and its
allies would do all they can to pressure gold in
order to keep the price under control.

As was the case last Friday, the buying pressure
hitting the gold market yesterday should have sent
gold up $10 or more instead of $5. The open interest
soared, rising a huge 13,128 contracts to 272,977.
This is reminiscent of last month's gold rally in
which the cabal sucked the funds in and flushed
them out.

How infuriating and outrageous this is! How obvious
can it get? You are being fleeced one more time
by this price-fixing operation. Sick of it yet? The
Goldman Sachs crowd has been given a license to
steal from you. It is time that the firm's license
be revoked and the cabal sanctioned with the
harshest of penalties.

After early punishment, gold came back somewhat
as Goldman Sachs did a minor bit of covering,
probably when their cabal selling was over for the

Silver put in a slightly frenetic session, opening very
strongly, dipping with the gold takedown, and then
firming up to close on the stout side. Our London
silver source checked in and is still looking for $8
to $8.50 silver in the months ahead.

The silver open interest rose 300 contracts to

Going the right way! The Comex silver stocks fell
another 234,259 ounces to 109,311,380, a new
low for the move.

A number of Caf members continue to refer to
GATA's evidence as "circumstantial" when it comes
to the cabal and its price rigging. The notion that
the sun will rise tomorrow is also circumstantial
too. There is no smoking gun out there declaring
that it will. What we do know is it has done so for
millions of years and that is all we need to

I have been reporting on the gold market for six
years now. In all cases it has been Goldman
Sachs, JP Morgan Chase, and, to a much lesser
extent Deutsche Bank on the sell side at key
gold price breakout times. EVERY time!

Yes, it has been so 100 percent of the time and
something I have reported on day after day after
day. Today is just another example out of many
hundreds. What kind of probability would
mathematicians assign to this occurrence if
gold was a free market and there was not a
collective effort to manage the price?

Circumstantial, my butt! And THAT is only a fraction
of the evidence GATA has collected on this corrupt
enterprise over the last 5 1/2 years. If this were a
murder case based on so-called "circumstantial
evidence," the Gold Cartel would be sentenced to
death after a guilty verdict based on a conclusion
of "beyond a reasonable doubt."

An update on the Sprott report on the suppression
of the gold price:

* South Africa is running with it. The legendary
Peter George, a veteran GATA supporter from Cape
Town, was on one of Johannesburg's leading radio
stations today to discuss the gold conspiracy. South
Africa's business press will be featuring the report
in the days ahead. Peter called me after the show to
say the Sprott report is receiving quite a bit of
coverage in South Africa.

* Look for very professional coverage of the report in
Canada next week.

* The Sprott report It has been posted on many Internet
sites, even though so far there hasn't been anything in
the major U.S. financial media. Talk about
irresponsibility toward the American public! At least put
the professional news out there and let people decide
for themselves.

So far no comment on the Sprott report from the gold
industry, which is par for the course. But GATA did
receive some superb feedback from the investment
community, the type that can help us winning the day.

From last night's "Midas" commentary:

"Where I believe the report is going to hit a homerun
is with the big hedge funds, the wealthiest individuals
in the world, and foreign central banks. After reading it
they will understand the implications. It will have them
buying gold hand over fist. It is only a matter of time.
The Sprott report could change the entire price
dynamics of the gold market and has to have the
Gold Cartel in a sweat."

I received the following message this morning from
Michel de Chabert-Ostland, a highly regarded
former New York hedge fund manager for many years
who worked with prominent firms before moving to

"I took 2 1/2 hours Tuesday evening to read the
Sprott report on the long-term manipulation of the
gold price. My conclusions:

"1. Considering the difficulty of the subject and
access to information, this is, without doubt, one
of the finest reports that I have ever read on any
market in my trading life. It is footnoted and
referenced at great length on all pertinent facts
and stipulations. Like great scientists, its authors
INFER/DERIVE conclusions based on the accumulated
observations and facts known.

"2. As the authors acknowledge, much credit is due
to the research work done by GATA and its
contributors, and I tip my hat -- no, I BOW to them
-- for their perseverance and diligence over many
years to accumulate the necessary evidence for
Sprott's conclusions.

"3. Anyone seriously contesting the Sprott report
will have to do so with FACTS. If a critic of the
report quotes any serious participant in the gold
market, he will have to analyze the truth or possible
deception of any such statement. Sprott has laid
down the gauntlet, and any party wishing to rebut
the report and be taken seriously MUST DO SO
The article by the Canadian journalist mentioned
on the GATA site yesterday failed to do so
miserably and was not worth the paper was is written

"4. I believe strongly that the Sprott report is a
major turning point for the gold market, and I added
considerably to my long futures positions after
reading it.

"5. The gold technicals are super-bullish. I will go
into details over the next 48 hours but for now keep
an eye on the 50-day moving average (currently
398.79 ) which looks poised to cross over the
200-day moving average (currently 401.73 ) on a
small upward move in the gold price. (I use cash
gold charts.) Could this happen while the major
players of the Western world are sunning
themselves in the last few days of summer ? It
wouldn't be the first time that a market makes a
very important move while the trading desks are
only half staffed.

"Kudos to GATA and Sprott.

"-- Michel de Chabert-Ostland, CEO
Royal Palm Trading"


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Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112

Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
Michael Kosares, Proprietor
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Colorado Gold
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El Dorado Discount Gold
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Harvey Gordin, President
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Investment Rarities Inc.
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Ed Lee, Proprietor

Miles Franklin Ltd.
3015 Ottawa Ave. South
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1-800-822-8080 / 952-929-1129
fax: 952-925-0143
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
Dr. Fred I. Goldstein, Senior Broker



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