AngloGold Ashanti continues to reduce forward sales of gold


8:17a ET Wednesday, November 1, 2006

Dear Friend of GATA and Gold:

Resource Investor's Charlotte Matthews reports that AngloGold Ashanti has reduced by nearly another $400 million the value of gold it has sold in advance of production. AngloGold Ashanti's hedge book is now at 9.5 million ounces, just about half of what it was four years ago. You can find the report at Resource Investor here:

John Hathaway: Gold can triple without any catastrophe


8:14a ET Wednesday, November 1, 2006

Dear Friend of GATA and Gold:

Tocqueville Gold Fund manager John Hathaway surveys the gold and financial markets in his new essay, "Trivial Pursuit," and remarks:

"Should fear revisit the financial markets, buying power for gold is without precedent. While the gold mining industry struggles to produce 2,500 tonnes per year, an amount that would increase the above-ground stock of gold by a paltry 1.7 percent, the financial system continually spews out a blizzard of new financial assets, all of which represent potential claims for liquidity and safety.

Ted Butler: A red flag?


6:44p ET Tuesday, October 31, 2006

Dear Friend of GATA and Gold:

In his latest essay, silver market analyst and GATA consultant Ted Butler comments on the sudden and unexplained resignation of the chief financial officer of the New York Mercantile Exchange. Butler thinks it has something to do with the former CFO's discovery that the NYMEX has a terrible liability in the manipulation of the silver market. You can find Butler's new essay, "A Red Flag?," at GoldSeek's companion site, SilverSeek, here:

UAE may make decisive shift away from dollar reserves


By Haseeb Haider
Khaleej Times, Dubai
Tuesday, October 31, 2006

ABU DHABI -- The United Arab Emirates Central Bank may cut its U.S. dollar-dominated reserves by up to 90 percent and is looking at other currencies such as the yen, euro, and sterling, UAE Central Bank Governor Sultan Nasser Al Suwaidi said yesterday. He did not elaborate.

Ben Stein: Has corporate America no shame? Or no memory?


By Ben Stein
The New York Times
Sunday, October 29, 2006

Truth be told, I had been wondering why Henry M. Paulson Jr., previously top dog at the Goldman Sachs Group -- already a power, already a wealthy man -- would have wanted to be Treasury secretary. After all, he couldn’t stop the Bush administration from pushing for tax cuts when they definitely were not needed, could not affect the vast current account deficit, could not do much about income inequality or the vast chasm that exists between whites and blacks in earning power and wealth in this country.

Interview with GATA Chairman Murphy available on free CD


9:52p ET Monday, October 30, 2006

Dear Friend of GATA and Gold:

WorldNetDaily and longtime GATA supporter Swiss America Trading Corp. have put on compact disc an interview by WND founder Joseph Farah with GATA Chairman Bill Murphy. The interview covers the gold price suppression scheme and the price prospects if gold breaks free of central bank efforts to contain it.

The CD is free if you'll sign up to receive a 16-page report from Swiss America, "The Rule of Gold," which reviews investing in tangible assets. Back in 2001, Swiss America published "Rediscovering Gold in the 21st Century," and of course that rediscovery has proved awfully profitable. "The Rule of Gold" explains why gold is still terribly cheap.

China looking for ways to tiptoe out of huge dollar surplus


Foreign Exchange Reserves
Set to Surpass US$1 Trillion

By Jin Rong
China Daily, Beijing
Monday, October 30, 2006

China's foreign exchange reserves look set to hit the US$1 trillion mark at the end of this month or beginning of November. But as the figure rises, so does the debate over how to best manage it.

The reserves, already the world's biggest, surged to US$987.9 billion at the end of September, largely driven by a burgeoning foreign trade surplus and massive inflow of foreign direct investment (FDI).

... When there's so much other money lying around?


Global Cash Glut
Fuels Investment Frenzy,
Pushing Up Rates

By John Fraher and Simon Kennedy
Bloomberg News Service
Monday, October 30, 2006

Markets around the world are awash in excess cash, fueling a frenzy of investment from London to Tokyo that may lead central banks to push interest rates higher than investors now anticipate.

Why would anyone want gold? ....


Gold Supply Likely
to Swamp Demand

By Simon Constable
Sunday, October 29, 2006

An increasing surplus of bullion relative to demand could mean bad news for gold bulls, if the predictions of a new report prove accurate.

Although the supply of gold looks set to drop by 159 metric tons for 2007, demand will plummet even faster, lower by 313 tons when compared to revised estimates for the whole of 2006, according to a new study scheduled for publishing Monday morning by Fortis Bank. The report was authored by a team of analysts led by veteran gold market watcher Jessica Cross, CEO at Virtual Metals, a London-based specialty consulting firm.

Dmitri Speck: Gold market interventions


2:22p ET Sunday, October 29, 2006

Dear Friend of GATA and Gold:

Dimitri Speck's address to the International Precious Metals and Commodities Convention in Munich this month has been posted at Gold-Eagle. It's titled "Gold Market Internventions" and it documents and charts the suppression brought to bear against the gold price, particularly during New York trading hours. You can find it here: