You are here

The monetary resistance is active in upstate New York

Section: Daily Dispatches

Gold's Bull Run Could Reach $850

By Chris Flood
Financial Times, London
Wednesday, April 12, 2006

http://news.ft.com/cms/s/b5dca1a8-ca13-11da-852f-0000779e2340.html

The current bull run for gold could push prices above the 1980
record high of $850 a troy ounce, according to the Gold Survey 2006
from GFMS, the precious metals consultancy.

"Levels safely over $600 are now in our sights and further hefty
gains over the next year or two are quite possible -- in the right
circumstances, the 1980 high of $850 could even be taken out," said
Philip Klapwijk of GFMS.

Gold is benefiting from a general rise in investor interest in
commodities both for speculative purposes and as an alternative
asset to equities, bonds and cash.

The success associated with investing in gold since 2001 is
attracting new players, such as pension funds, and could bring a
significant increase in new investment flows into a comparatively
small market.

Investment flows are expected to be sustained by the the high
probability of a sharp slowdown in US economic growth while greater
global inflationary pressures and political tensions in the Middle
East are also expected to be supportive factors.

A major surprise in the GFMS survey was a 100-tonne increase in
jewellery demand last year. The survey found that this strength was
confined to the first half of last year when demand rose 218 tonnes
and there was a marked decline of 119 tonnes in jewellery demand in
the second half. India alone saw jewellery output rise by 11 per
cent or 61 tonnes last year.

However, high and volatile prices in the final quarter of last year
led to a slump in global jewellery fabrication which fell 18 per
cent compared to the same period in 2004. This weakness has
continued into 2006 with price sensitive markets especially
affected. Turkey, the world's third largest manufacturer of gold
jewellery has seen bullion imports drop by almost 60 per cent in the
first quarter of 2006 compared to the three month period in 2005.

Official sales of gold reached record levels in 2005 with a rise of
40 per cent year-on-year. Much of this was attributed to a jump in
sales by Central Bank Gold Agreement (CBGA) signatories. GFMS said
the high volume of sales by central banks exerted considerable
pressure on the gold price.

Provisional estimates for the first quarter of 2006 suggest a
dramatic fall in sales by (CBGA) signatories while central banks
elsewhere have emerged as net buyers of gold. GFMS expects net sales
by central banks over the rest of the year to remain markedly lower
than in 2005.

"Overall, the apparent 'anti-gold' sentiment within the official-
sector community that had grown during the 1990s seemed to be
moderating, if not fading away," said Philip Klapwijk.

Looking at supply and demand, the GFMS survey found that annual
global mine production posted a moderate increase of just 2 per cent
last year. South African gold production shrank to its lowest for 82
years explained by mine closures due to the country's high cost
environment.

There was a markedly stronger production performance from the
world's two largest mines. Grasberg in Indonesia raised output by
almost 60 tonnes last year while Yanacoha in Peru achieved record
annual output.

Global mine production is expected to increase by about 4 per cent
this year as more new mines come on stream or existing mines ramp up
to full capacity.

"While start-ups in 2006 will add to the bottom line, 2005's mines
ramping up to full-rate production will be the source of further
significant volumes," said Bruce Alway, senior analyst at GFMS.

Increased mine output is expected to lead to higher levels of de-
hedging, which GFMS estimated could recover to 200 to 300 tonnes in
2006 from about 130 tonnes in 2005.

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

To subscribe to GATA's dispatches, send an e-mail to:

gata-subscribe@yahoogroups.com

To unsubscribe, send an e-mail to:

gata-unsubscribe@yahoogroups.com

Caution: America Online prohibits delivery of GATA
dispatches to AOL e-mailboxes.

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

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

http://www.jsmineset.com

http://www.cbs.marketwatch.com

http://www.mineweb.com/

http://www.gold-eagle.com/

http://www.kitco.com/

http://www.usagold.com/

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/

http://www.oroyfinanzas.com/

Subscription sites:

http://www.lemetropolecafe.com/

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

Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com

Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net

Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com

MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com

Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066

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

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

http://www.gata.org/creditcard.html

By GoldMoney:

http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.