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A lousy week, but get a grip
6p ET Friday, March 2, 2007
Dear Friend of GATA and Gold:
Gold market analyst Peter Grandich, editor of The Grandich Letter, distributed a special alert this evening, explaining why after this week's pounding he couldn't be more bullish on gold. He urges gold investors not to harm themselves before 9:31 a.m. Eastern time Monday. You can find Grandich's special letter at GoldSeek here:
http://news.goldseek.com/Grandich/1172872793.php
Meanwhile, Jim Sinclair remarks tonight with the resignation born of experience:
"In gold simple logic is lost and panic is the embarrassment of the day.
"This is how pros structure, and the public executes breaks always to the best interest of the pro. It has always been this way. I am sorry because it always will be. Weakness will always be sold and strength will always be bought.
"I trade by fading the gold market. On a day like this when gold was $665 overnight and the U.S. operators drop it $25 in the U.S. day, I am compelled to buy. I will continue, not because I think I know but because I know I know!
"I pleaded with you over the past two weeks to eliminate margin, but I wager that more readers took on additional margin. ...
"The share guys are worse than the futures traders. The gold share gang turns from frantically enthusiastic to manic depressive, from friend to sworn enemy in a day.
"Gold is going to $761 ,$887.50 and $1650. Get a grip!"
You can find Sinclair's commentary at JSMineset here:
Mike Bolser reminded readers of his Interventional Analysis letter today (http://www.interventionalanalysis.com) of something Gold Rush 21 speaker Peter George stressed: that governments crush the price of gold precisely when gold should seem most attractive to investors, at times of stress in the world financial system. The point is, as Bolser wrote, "to close the exits to all other investments except [government] bonds."
But weeks like this cost the central banks a lot of gold, and they're running out. As GATA Chairman Bill Murphy often writes in his nightly "Midas" commentary at LeMetropoleCafe.com, the central banks can win battles but they have been losing the war against gold for years now. And as John Embry wrote in his column in Investor's Digest of Canada today, the central banks' intervention against gold has gone beyond deniability, what with the dumping of huge tranches of contracts on the commodities exchanges in maneuvers whose only possible purpose can be to defend short positions, not to maximize profits.
The central banks have been found out. The world will awaken one day, possibly soon, to their announcement that the U.S. dollar henceforth will be worth a lot less than it was the day before and that they will be buying gold for a lot more than its previous closing price. You'll want to have plenty on hand before then.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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