You are here
Toronto Globe and Mail quotes GATA chairman in gold survey
Recent Slide Fails to Squelch Gold Bugs
Yesterday's rally confirms their optimism
as geopolitical jitters stir safe-haven focus
By Wendy Stueck
The Globe and Mail, Toronto
Wednesday, June 21, 2006
http://www.theglobeandmail.com/servlet/story/LAC.20060621.RGOLDBUGS21/
TPStory/Business
VANCOUVER -- Gold may have been beaten up in recent weeks, but true believers are not losing faith.
"A $740 [U.S.] per ounce gold price is nothing -- it should be double that," said Bill Murphy, chairman of the Gold Anti-Trust Action Committee, a Dallas-based group that tirelessly promotes a gold-price suppression theory involving central banks, trading houses, and governments.
"This is Mickey Mouse stuff; the real action hasn't even happened yet," Murphy said.
Mr. Murphy and other gold fans would have taken heart from the precious metal's performance yesterday, when gold prices climbed on reports of weapons testing in North Korea and continuing jitters over nuclear programs in Iran. Prior to that, gold prices had fallen for five consecutive weeks.
But yesterday, gold futures for August delivery rose $8.10 to close at $580.50 an ounce on the New York Mercantile Exchange.
Prices, which hit a high of $732 an ounce on May 12, are still up 30 per cent from a year ago despite the recent slide.
"The market's gotten enough of a liquidation. It's coming back to look at core fundamentals," said Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago. "Gold will start refocusing on North Korea, Iran, and the hurricane season."
With its reputation as a safe-haven investment, gold tends to rise in times of political turmoil or tension.
Mr. Murphy, who was in Vancouver this month to share his version of the gold gospel at an industry trade show, says that the recent sharp correction in the gold price reflects a concerted effort by what he labels a "cartel" to drive prices down and calm a market that looked ready to explode.
His take on the gold market puts him among the most outspoken and controversial of so-called gold bugs. But while other gold players may take a more measured tone, many echo Mr. Murphy's general theme: that the underlying case for higher gold prices remains strong.
"We still see a lot of reasons to continue to own gold for the short, medium, and long term," said Robert Cohen, manager of Dynamic Precious Metals Fund, which describes gold as "fire insurance" for investors' portfolios.
Mr. Cohen expects volatility to continue through the summer but expects the gold price to firm up in the fall and to hit the $650-700 range by year-end.
"We still feel the U.S. dollar will continue its downward path. We're just seeing a recent correction, with the fed rate hiking," Mr. Cohen said, referring to interest rate increases in the United States.
"I think it will probably muddle along over the summer and we would be surprised not to see a [gold] bull market in the fall."
Mr. Cohen said he has made only minor adjustments to his portfolio.
Peter Marrone, chief executive officer of Toronto-based miner Yamana Gold Inc., also believes the long-term outlook for gold is strong, adding that the price had moved too high over too short of a period.
"I think we'll see a reconsolidation around this level, and then see gold make another move."
One area in which the gold price is having an impact is on financings for junior companies. Deals are taking longer to put together, and featuring prices that might be a little lower than had the deal come to market even a few weeks ago, said Gordon Keep, a spokesman for Vancouver-based Endeavour Financial, a merchant banking and advisory group.
Some companies may take a breather and wait to see how market conditions play out in coming weeks, he said. "We haven't seen any deals disappear, but there are not as many coming in the door."
----------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
Caution: America Online prohibits delivery of GATA dispatches to AOL e-mailboxes.
-----------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
-----------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
-----------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please consider making a financial contribution to GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $200 or more will receive copies of "The ABCs of Gold Investing" by Michael Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming Collapse of the Dollar" by James Turk and John Rubino.
GATA is a civil rights and educational organization under the U.S. Internal Revenue Code and contributions to it are tax-deductible in the United States.
-END-
