''Midas'' commentary from www.LeMetropoleCafe.com for June 22, 2002


Copyright 2002, www.LeMetropoleCafe.com
Used by permission

Midas commentary for June 22, 2002

By Bill Murphy

Gold $324.40, up $1.70
Silver $4.85, down 2 cents

It could not be more clear that a powerful
force is trying to cap gold. The dollar was
trashed Friday, closing in new low ground for
the move at 108.70. The stock market was
obliterated too as the Dow submarined 177
points to 9254 and the DOG sank to 1441, down
24. The NASDOG is only 13 points away from
taking out its Sept. 11 low, while the
bigger-cap Nasdaq 100 index has already
broken that low.

But gold -- not so fast. Cap, cap again. The
Gold Cartel is trying to keep gold from
blowing through $330, buying time for a
dollar reversal, etc, to take gold down
before it exposes their fraud. The funds, as
expected, came in big on the buy side due to
consistent positive price action, while the
goons sold.

And once again gold was allowed to advance
only within the confines of the re-emerged $2
rule limit, to prevent excitement. (In the
dog-day years gold was never allowed to
advance more than $2 on any given day.The
cabal knew very well that price action makes
market commentary, and a $2 move up won't
generate any real bullish press. For years
Midas has commented on this cabal market

The funny thing is that if the dollar and
stock market keep going for three more days
and gold is allowed to advance only $2 on
those days, it will still be $330 bid and the
gold derivative neutron bomb will go off
anyway. The Gold Cartel is running out of
time as well as ammo to keep doing the dirty.

Gold is only $3 away from closing in new high
ground and has been cleaned up technically.
More than 31,000 long contracts have been
whittled away, based on the Comex open
interest data.

The Comex floor wanted to see gold go out
$325.50 bid, basis August, to set up a big
move next week. We did not get that as August
went out at $325.30. Still, my guess is that
gold is going to go bananas overseas one day
and gap up $10, which should set off the gold
derivatives bomb.

As far as silver goes, there is ONE big
seller. Strangely enough, it has to be the
biggest Comex long; I hear 15,000 contracts.
This long rolls over his position every
month, but legs into his trades. He sells
going into first notice day (next Wednesday
for the July silver contract) and then buys
as the specs puke or silver sells off. My
guess is that this is his way of paying for
the silver contango. This BIG LONG has been
there since the Buffet buying days and is a
known market factor on a short-term basis. I
am told that if he lets up, silver is going
to fly. Since he probably will buy Decembers
to replace the Julys he sold, it is only a
matter of weeks that silver streaks much

On the Royal Bank of Canada gold report:

* * * * * * * * *


Not sure how many Cafe members will
appreciate the significance of the RBC
letter. The Royal Bank of Canada is one of
the top 10 financial institutions in the
world (assets). Canada really has only five
major banks, and the RBC is the 800-pound
gorilla. I know full well the ripple this
will have in the Canadian and European
markets, and it certainly won't be lost on
Wall Street.

Best Regards,


* * *

A posting at www.Gold-Eagle.com by Orca:

The Royal Bank is the most respected (and
loathed -- after all, it is a bank and they
do their best to squeeze as much money out of
you as they can!) bank in Canada. Unlike many
other countries, Canada's banking system is
very concentrated into only a few major
players. As much as Canadians hate their
banks (myself included), they are very well
run by international standards, especially
Royal, and have been much slower to get
involved extensively in derivative
shenanigans, etc. To hear a statement like
we've had come from them, even if they later
tried to dissociate themselves from it, is

A couple of things to keep in mind especially
after reading the commentary by Thom Calandra
of CBSMarketWatch on the Royal Bank report.

1) The report was NOT internal. It was
distributed to select clients.

2) The Globe article is co-authored by Andrew
Willis. He is one of the senior editors at
the Globe, and his credibility is unwavering.

Royal Bank will be found out, as will the
cabal. There is no doubt about it. The story
in the Globe and Mail is huge. The Globe is
the major national (although we in the west
consider it very Toronto-centric) paper in
the country. It's the Wall Street Journal of
Canada, although many times better.

The truth is out there! I'm very proud to be
a Canadian right now!

* * *

Hi Bill, Chris, and Reg:

It's thrilling that the Bank of Canada's
global hedge fund group has emphatically
endorsed virtually all of GATA's findings.
This is the air of vindication. A new phase
of the battle has arrived.

In the coming days there may be an
accelerating realization among the media that
the COMEX gold price manipulation has many
victims other than investors. The climate
couldn't be worse for the culprits, nor
brighter for gold.

You led the way.

The World is not perishing for the want of
clever Or talented or well-meaning men. It is
perishing For the want of men of courage and
resolution who,
In the devotion to the cause of right and
Can rise above personal feeling and private

-- Robert J. McCracken

Kindest Regards,


* * * * * * * * *

I could not agree more that we are going into
a new phase in our battle against the corrupt
Gold Cartel. The Royal Bank report came out
at the worst possible time for them. Murphy's
Law has done it again. Now that the cabal is
so vulnerable, the GATA Army should pour it
on. Send the RBC report everywhere. Go back
to the gold companies that have ignored GATA
and ask them to step up to the plate and give
us some support so we can finish off the
cartel bums. Certainly that report should go
to the leaders of the sub-Saharan gold-
producing countries. The more visibility that
report gets, the closer our "enveloping horn"
will be to winning the day.

* * *

The John Brimelow Report:

Indian ex duty premiums: AM ($0.80) PM
($0.52), with world gold at $323.80 and
$323.20. Still below legal import level of
course, but slightly stronger than yesterday,
even though world gold was $3 higher.

Tocom had a spirited start, because of the
higher NY close and because the Japanese
government was expected to weaken the yen. In
the event, the authorities delivered a much
more egregious than usual open mouth/insert
foot routine, with various officials denying
intervention had occurred, casting doubt on
the effectiveness of intervention in
principle, and asserting that the situation
was dollar weakness rather than yen strength.
(The latter of course is true, but it
discouraged Tocom buying.) Open interest fell
the equivalent of 713 Comex contracts on
limited volume equal to 16,424 NY lots. (NY
yesterday traded 42,783 contracts and OI rose
3170 contracts, suggesting the rise was not
due to short covering as widely suggested.

Gold drifted around $323.50 in Europe, with
many comments to the effect that further
weakness in the dollar would be likely to
cause a price increase. In the event, of
course, the dollar slumped in NY, but gold
could rally only another dollar, with notable
volume increase as it tried to move up.
Consequently this is a good day to point out
that a paper by the Royal Bank of Canada's
Investment department constitutes the first
endorsement by a mainstream institution of
the GATA gold conspiracy theory.

With the stock market slump likely to
precipitate more dollar weakness, (except
perhaps in Japan, where intervention will
very likely be provoked by the yen's fall of
more than 2 yen since Tokyo's close, gold's
friends can enjoy the weekend next week
could be pleasant.

A thought to contemplate is how the dollar
and the U.S. market will be viewed by the
rest of the world when Israel deals with the
suicide bombing problem by expelling the
Palestinians from the West Bank, a very
likely event, in the opinion of this writer.


* * *

The Swiss look dumber by the week. In time
their own citizens will agree:

"ZURICH (Dow Jones) -- The Swiss National
Bank sold around 8.9 metric tons of gold in
the 10-day reporting period ended Thursday,
the central bank's regular statistics report
showed Friday. That brings the total gold
sales to around 528.9 tons since the
beginning of the SNB's program in May 2000 to
sell 1,300 tons of surplus reserves. The gold
operations come under a framework agreed
among 15 European central banks Sept. 26,


The Watch has been a regular Midas feature
for years. The thinking behind it is that
since the gold market was rigged, it would be
good for the Caf to monitor the financial
scene for the day when they could no longer
continue their fraudulent scheme because of
overpowering economic events.

We seem to be close to that day.

Years ago I bestowed upon Goldman Sachs the
name "Hannibal Lecter" and called the other
price-fixing bullion banks "Hannibal
Cannibals." At that time, Goldman Sachs was
clearly the ringleader of the goon squad that
was eating the lunch of many of the gold
producers, gold investors, sub-Saharan
African countries, et al. They are a bad lot,
as many of their top honchos have become very
rich by taking advantage of others and
breaking the law (when it comes to their gold
price-fixing activities).

Long time Caf members know very well the
"why" of this continuous rant: 42 months of
glaring evidence is all in the James Joyce
Table Library. Concerning the general
investing public, look at Goldman's public
posture re the stock market via the
antiquated Abby Joseph Cohen. They still trot
her out to give her quarterly bullish
forecast. She is supposed to represent the
stock market thinking of this distinguished
company. Yet regard what her peers are doing
behind the scenes:

"I am a relatively new subscriber but a long
time hedge fund manager (formerly) and now a
private investor.... I note with amazement
today the massive filing for insider sales by
Goldman, a total of 65 million shares or so ,
which must be 12 percent of float and 25
percent of insider holdings.... These sales
are planned for the third quarter, and I
think the implications are enormous and
ominous. This is a red flag insider sell by
the insiders of insiders on U.S. economic
policy. They must be expecting or planning
(in conjunction with the PPT) a countertrend
rally in early July to coincide with the
unlocking of these shares -- either way
another sign of the coming storm. Keep up the
great work.... MHS."

That is why I think of Goldman Sachs as
Hannibal Lecter.

Investing public who pay attention to Goldman
Sachs spokespeople when presented on CNBC:
Caveat Lecter!

Uh-oh, for Royal Bank of Canada!

From The Globe and Mail article:

"Mark Arthur, head of Royal Bank Investment
Management Inc., said Mr. Embry's report was
done for internal use and 'in no way reflects
the views of Royal Bank.'"

And from Thom Calandra's story at

"A spokesman for Royal Bank of Canada said
the report was an internal one, not meant for
public consumption. 'It was a discussion
paper prepared for review by the Investment
Strategy Committee and does not represent the
view of RBC,' Graham Harris, senior advisor
for corporate communications at Royal Bank of
Canada, told me."

OK, so two top spokesmen at the Royal Bank
are disavowing what may be the best
institutional report on gold ever written by
the No. 1 gold fund manager in the world and
one of the most successful money managers in

Yet another Canadian tells us:

"My brother, who is a subscriber to your
service, called me to tell me about the Royal
Bank of Canada report on gold you discussed
in your newsletter yesterday, as he knew I
was a client of RBC. I promptly called my RBC
investment adviser and requested a copy of
the report. I was told the report does exist
but is for internal use only, and in its
place they sent the attached very bearish
report on gold. Why do you suppose they would
speak very bullish on gold among themselves
and yet send me -- a client -- an opposing
view on gold bullion and gold equities? I
believe I heard in the news a few weeks ago
that a large investment house was fined a
large amount for just such practices.
Regards, T.F."

TF then came back with the following:

"Bill, I have received the Investment Outlook
(summer 2002) published by RBC Capital
Markets, which is distributed to all
individual clients of RBC. (My copy arrived
in the mail today). The document is 60+ pages
and has one page on gold. In this document
they recommend that their clients buy barrick
( increase portfolio weight from 2 to 3
percent) and sell Goldcorp (2 percent down to
0). Note that this is the exact opposite to
the statements in the gold report you were so
kind to send me. That document says 'two of
Canada's largest three gold companies,
Barrick and Placer, are not really viable
investments because of the scale of their
hedging activities.'

"Also, in the document I received in the
mail, RBC says, 'Within the past 36 months,
RBC Dominion Securities Inc. has undertaken
an underwriting liability of has provided
advice for a fee with respect to the
securities of this company' -- Barrick.

"It makes me want to call my lawyer.

"Regards, T.F."

Is Royal Bank of Canada a bit like Goldman
Sachs? They tell the public one thing, while
the big private clients get rich because they
know the truth. For years I have bellowed
that Wall Street was a sewer, but Bay Street
too? I was too kind to Wall Street. The
latest from Sewersville:

* * *

New York, June 21 (Bloomberg) -- Corporate
insiders' stock sales are outpacing purchases
by the widest margin in almost 16 years,
suggesting U.S. equity indexes are headed for
further declines, according to newsletter
editor David Coleman. The increase in sales
by executives and directors shows they "feel
their investments are better placed
elsewhere, rather than in their own
companies' stock," said Coleman, whose
Vickers Weekly Insider Report tracks insider
trades. The sales are "a good indication, if
you own the stock, to reconsider why you
bought it.'

Camp Hill, Pennsylvania, June 21 (Bloomberg)
-- Four former and current top executives of
Rite Aid Corp. are facing criminal charges
from what the Securities and Exchange
Commission called one of the worst accounting
frauds in recent history. Martin Grass, who
was a long-time chief executive, along with
the former chief financial and legal officers
and a current senior executive were indicted
by the U.S. Attorney for the Middle District
of Pennsylvania. The former president of the
third- largest U.S. drug-store chain settled
with the SEC and pleaded guilty to a felony
charge, the agencies said in statements.

New York, June 22 (Bloomberg) -- A current
Global Crossing Ltd. employee and a former
worker accused the bankrupt fiber-optic
network owner of shredding documents in
February after U.S. regulators began an
investigation into its collapse. Cathleen
Kicak, a Global Crossing receptionist, said
in a sworn statement she saw two co-workers
leave a room containing a shredder at the
company's Madison, N.J., offices. Kicak and
her co-workers "were curious as to why they
were in there behind a closed door with a
shredder,' she said in court papers filed in
U.S. Bankruptcy Court in New York.

New York, June 21 (Bloomberg) -- Merrill
Lynch & Co. placed Peter Bacanovic, the
broker for Martha Stewart, on administrative
leave, as regulators investigate alleged
insider trading in shares of ImClone Systems
Inc. Merrill said Bacanovic and Douglas
Faneuil, his assistant, were put on leave
after an internal investigation raised
"factual issues regarding a client

* * *

Then, there is the hallowed credible press
like the Wall Street Journal and Bloomberg
News that tell it like it isn't:

"Bill, I'm a Cafe member, fan, supporter,
etc. I arrange my social life around Midas
postings. You have commented about the gold
and GATA coverage on Bloomberg (or lack of
it), and I did read the rumor that Bloomberg
journalists had been forbidden from covering
such news. Anyway, this New York Times
article (appended below) about Mike
Bloomberg's 2001 tax disclosure is
illuminating. I wonder who supported his
election campaign and how. Here in Europe we
have Italy run by the guy who own all the
media in that country -- Silvio Berlosconi.
Obviously there's no conflict of interest
with media moguls taking political power, is
there? In Mike Bloomberg's case, we take this
one stage further (in GATA interest terms) by
noting his significant stock holdings in
cabal members JPMC and Citigroup. The power
of the Internet will win the day ... as is
becoming customary. Go, GATA! -- Henry."

By Diana B. Henriques The New York Times June
8, 2002

Mayor's Report Gives Hazy Peek At His

There is only one precise dollar amount in
the hundreds of pages of financial disclosure
documents for 2001 that Mayor Michael R.
Bloomberg provided to news reporters at his
accountant's offices yesterday: $122,520,000.
That was not the mayor's net worth; nor was
it his annual income from Bloomberg L.P., the
financial information conglomerate he
founded. Neither of those amounts was
disclosed. The nine-digit figure is simply
the amount Mr. Bloomberg gave away last year
to more than 540 organizations across the

But even when you're Mike Bloomberg, whose
net worth has been estimated at $4 billion,
you win some and you lose some -- as the new
disclosure documents show.

City officials are not required to give any
precise amounts in their financial disclosure
reports; instead, they can use a letter of
the alphabet that corresponds to a range of
amounts. The top category, labeled G, is for
amounts of '$500,000 or more.''

The mayor's filings are awash in G's. His
taxable income was G, his total federal tax
deductions were G, and his remaining federal
and state tax bills were G. (Because he paid
his federal taxes in four installments of G
each, his federal tax bill for 2001 was more
than $2 million -- probably much more -- but
that figure is not in the documents.)

And there are a swarm of G's in his report on
his personal stock portfolio, which includes
G-size stakes in AOL Time Warner, Bear
Stearns, Citigroup, McGraw-Hill Companies, J.
P. Morgan Chase and a number of other
corporations that have a substantial presence
in New York City and may negotiate with city
agencies over real estate projects, taxes or
other issues.

* * *

Bloomberg refuses to acknowledge GATA or Reg
Howe in any way. Their gold writer is not
allowed to talk about us. Bloomberg is a big
Morgan/Citi man. He supports them and they
helped him buy his way into the mayorality of
New York. Quid pro quo. That is fine, but
just don't expound about a free press in
America. In New York and Washington it is a
bought press.

Big Bertha, the gold derivative neutron bomb,
cannot far off from going off. The cabal has
been found out. Their days are numbered. We
are going to have much fun in the weeks,
months, and years ahead and make a pile of
dough. But most importantly a lot of
impoverished people in the poor gold-
producing countries are going to have some
good times after being devastated by the
bullion banking crooks.