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GATA chairman urges Senate to interrogate Morgan -- and you should too!
10:17p ET Sunday, July 28, 2002
Dear Friend of GATA and Gold:
Can you stand one more reference to the gold
price-capping work of J.P. Morgan Chase? It's
below, from tomorrow's edition of The King
Report, the excellent newsletter of M. Ramsey
King Securities Inc.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
From The King Report
for Monday, July 29, 2002
M. Ramsey King Securities Inc.
... We've been waiting for the inevitable
shakeout in gold that normally occurs in
nascent bull markets after the first strong
rally. This occurred in 1984 for stocks. Gold
and gold shares peaked in June, about a month
after cyclical stocks. In June, copper and
industrial commodities started a collapse
that continues to this day. Gold fell in
concert. When JPM and Citigroup concern
threatened to go nuclear, gold was hammered,
giving JPM relief from its purported onerous
gold derivative book. Of course that
coincided with the dollar rally. Contributing
to gold's decline last week is forced hedge
fund selling. Hedge funds that are
hemorrhaging from picking too many stock
bottoms the past few months are now selling
winning positions such as gold, euros, etc.
This is very common during unexpected moves,
and is a cardinal mistake -- selling winners
to support losers. Gold should fall to, and
probably below, $300 in the near future. But
as we opined weeks ago, after whatever summer
rally occurs, autumn will bring renewed and
intensified concerns about the economy and
the rumored Iraq excursion. Enjoy the summer
respite; unfortunately it will be brief.