National Post: Gold at $1,000? Anything seems possible now

Section:

9:23p ET Sunday, December 11, 2005

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy, author of the "Midas"
column at his proprietary Internet site,
LeMetropoleCafe.com, just dispatched the following
alert to his subscribers.

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

* * *

GOLD UP $5 IN TOKYO

The February Comex gold contract, which is the nearby
pivotal one now on the continuation charts, has taken out
its high of 1981 of $535 on a quarterly basis. This
breakthrough is of big-picture importance. What is of note
is that the next significant resistance for gold on a
quarterly basis on the continuation charts is all the way
up to $612.

Frank Veneroso confirmed tonight what Midas and GATA
have been saying for some time. The Gold Cartel has lost
control of the gold market. This was also confirmed to us
the other day by someone who once sat on the board of
one of the 12 regional Federal Reserve banks. This
former board member has loaded his own boat with
physical gold and expects the price to reach $900 to
$1,000 in three years. This is a conservative banker.

One of the most critical dynamics of the gold market at
the moment confirms what GATA has said all along --
and what no one in the mainstream gold world will even
admit exists. There is a MASSIVE Gold Cartel short
position, which the cartel cannot get out of. The bums
are trapped. These white-collar thugs who have violated
U.S. anti-trust laws for so many years have cooked their
own goose.

I sent the following today to Ted David of CNBC, which,
I know, is like dropping into black hole, but we in the
GATA army have to keep up the old college try. I
included the Russian/Gold Rush 21 stuff I have been
pounding away on for weeks ... and these notes:

-- Since Gold Rush 21 gold has risen $95, yet the
dollar has risen from 87 to 91 and oil has fallen from
$68 to $60 per barrel. Almost no one thought that
possible a year ago. The key to the gold market is
surging physical market buying overtaking the Gold
Cartel's ability to suppress the price.

-- For years GATA has said that the price of gold could
rally $100 and the dollar do nothing as the Gold Cartel
lost control of their price-rigging scheme. Few others if
anyone else thought that possible. But that is what has
happened.

-- The central banks have less than half the gold they say
they have. Over the last decade they have surreptitiously
lent out this gold to suppress the price. This calculation
is based on studies by three GATA consultants.

-- One of the major factors in the gold market today is the
gold short position -- more than 10,000 tonnes in a market
with a 1,500 tonne yearly supply deficit and only 2,500
tonnes per year coming out of the mines. The shorts are
trapped; they cannot get out. There are mega-derivatives
tied to those shorts. GATA knows this because of the
derivative numbers recorded by the Bank For International
Settlement derivatives numbers.

-- A gold derivatives neutron bomb will go off. It could
happen at any time.

-- Price prediction: Adam Fleming, former chairman of
Harmony Gold and now chairman of Wits Gold, said at
Gold Rush 21 that he is looking for $3,000 to $5,000 per
ounce. I concur.

BILL MURPHY
LeMetropoleCafe.com

----------------------------------------------------

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RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
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NEWS AND ANALYSIS

Free sites:

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http://www.usagold.com/amk/usagoldmarketupdate.html

http://www.GoldSeek.com/

http://www.GoldReview.com/

http://www.capitalupdates.com/

http://www.DailyReckoning.com

http://www.goldenbar.com/

http://www.silver-investor.com

http://www.thebulliondesk.com/

http://www.sharelynx.com/

http://www.mininglife.com/

http://www.financialsense.com

http://www.goldensextant.com

http://www.goldismoney.info/index.html

http://www.howestreet.com

http://www.depression2.tv

http://www.moneyfiles.org/

http://www.howestreet.com

http://www.minersmanual.com/minernews.html

http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html

http://www.goldcolony.com

http://www.miningstocks.com

http://www.mineralstox.com

http://www.freemarketnews.com

http://www.321gold.com

http://www.SilverSeek.com

http://www.investmentrarities.com

http://www.kereport.com
(Korelin Business Report -- audio)

http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)

http://www.resourceinvestor.com

http://www.miningmx.com

http://www.prudentbear.com

http://www.dollarcollapse.com

http://www.kitcocasey.com

http://000999.forumactif.com/

http://www.golddrivers.com/

http://www.goldpennystocks.com/

Subscription sites:

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http://www.goldinsider.com/

http://www.hsletter.com

http://www.interventionalanalysis.com

http://www.investmentindicators.com/

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

Ted Butler silver commentary archive:

http://www.investmentrarities.com/

----------------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

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1-800-869-5115
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Greg Westgaard, Sales Manager
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178 West Service Road
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Canada
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454 Daniel Webster Highway
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214-632-8869
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Metalguys@aol.com
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http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
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The Moneychanger
Box 178
Westpoint, Tennessee 38486
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Franklin Sanders
1-888-218-9226, 931-766-6066

----------------------------------------------------

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