Blanchard Research: Central banks are biggest factors in gold market


6:25p ET Wednesday, May 2, 2007

Dear Friend of GATA and Gold:

Some gold market analysts pretend that the Western central banks have no special influence in the gold market. Today's Blanchard Economic Research Unit daily note by Neal Ryan describes in detail how, to the contrary, the central banks are the biggest and most influential players in that market, at least for the time being.

From this finding arises the question: Whatever could be their intentions with gold?

And once you've accepted the premise that the Western central banks are big players in the market and that they indeed just might have certain intentions, you're on your way to discovering the secret knowledge of the financial universe, the possession of which is both a vast opportunity and a haunting that is hard to shake. For it puts you a bit outside the world everyone else thinks he is living in.

Ryan's conclusion today: "The increase in [gold] supply is a temporary phenomenon because of drastically increased bank sales. Sales will moderate and mine supply will still be slumping, dehedging will still be taking place, and investor demand will still be increasing."

Ryan's research note is tonight's required reading, and you can find it at GoldSeek here:

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

* * *

at the
World Gold, PGM, and Diamond Investment Conference
in Vancouver, British Columbia, Canada
Sunday and Monday, June 17 and 18, 2007

* * *

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