Last week CPM Group announced that gold investment demand had hit a 35-year high. Also announced last week was the proposed listing in Toronto of Central Gold Manager's Gold-Trust. A closed-end fund which will invest at least 90% of its assets in physical, allocated, 400oz bars. The fund will be in part managed by the team from Canada's Central Gold Fund and Eric Sprott and John Embry from Sprott Asset Management.
The gold bar doesn't stop there...
Wednesday 7th May, Gold Corporation (the Perth Mint) announced it would list on the Australian Stock Exchange a gold-backed warrant (Code: "ZAUWBA") which entitles the holder to exercise a call warrant to receive 1/100th of one ounce of gold bullion.
2 gold-backed securities in 7 days... 3 gold-backed securities in 6 weeks... gold investment demand on the rise... and the US$ gold price is rising. I will let you make your own conclusions.
What will happen when the Chinese get their product up and running in what is expected to be the next couple of months?
Increasing Demand:
Gold Bullion Limited (ASX Code: "GOLD") listed its gold-backed security in Australia about 6 weeks ago. Since then the fund size has been growing at an increasing rate. Last week it traded A$8.7 million - the second most liquid gold stock on the ASX on that day. The fund now has over 50,000 ounces of physical gold bullion. That might seem a small number to some but with gold investment demand changing and equity demand volatile at best, 50,000 ounces is but a drop in a potential ocean. A small gold company would be happy to produce 50,000 ounces in one year and yet this demand has come from investors without a significant marketing campaign yet.
Exchange Traded Funds & Gold
These new gold-backed funds are merely gold ETFs. ETFs have exploded on to the global investment markets with products in almost every asset class, on every major exchange and in every sector. There is potential for other commodity ETF's to be listed as well however, liquidity, fungibility and ease of storage are critical to the product. Try storing $100 million of wool! That amount in gold will fit under your desk. Again, it is no coincidence that ETF's are the cheapest and most liquid investments being traded these days.
What investors will be looking for in a gold-backed security:
1. Accessibility - tradeable by anyone, in any amount, and on an established exchange;
2. Ownership in the gold - this helps to reduce the risk of the investment, gives the investor the sense they own physical gold, and investors want to have ownership (or at least legal title and ownership) of the physical gold as a store of wealth;
3. Liquidity (and minimal tracking error) - as with the original equity-index ETF's, liquidity needs to backed by a creation/redemption feature to allow trading in the ETF or the actual physical itself. Otherwise the ETF's liquidity will be a poor substitute for the product it is trying to mimic; and
4. Everyone's favourite - fees. Fees need to be rock bottom to encourage investors to trade these products. Prohibitively high fees, as with managed funds which are in the order of 2%+ p.a., do not allow investor and traders to hold these product short-term and again, they will revert to the physical if the substitute is poor.
All in all, this is an exciting time for the gold market and the timing is right given the explosion of alternative investments and ETF's globally.
Mark -- Cyclist, 20:00:32 05/07/03 Wed
If the 30 year bonds dip belStagflation or deflation is the 64m question.ow the 4.6 % ,IMO
we will see deflation starting to solidify. On the other hand, through massive monetization on a global scale by the central bankers we might see stagflation with deflation eventually as the final solution
The global community and especially the American consumer
is saturated with debt of historic proportion.The central bankers have poisoned the well .The collapse of the dollar is going to slow down as other countries will be competitive in their currency depreciation as well.
When this situation occurs physical gold will start to get
pricing power .There will be no run on the banks but a run into gold.
Deflation is the natural hang over after a credit binge and/or capital misallocation.
Both situations have played out on a massive scale and the piper have to be payed.
All the above are FWIW
For Cyclist - About Deflation -- Mark, 13:53:43 05/07/03 Wed
Deflation - Not gonna happen. No way - no how. Dollar is headed much lower for the next several years. Study the historical charts of the dollar and then you'll understand why.
June bonds -- Cyclist, 08:31:41 05/07/03 Wed
ready to break out ,116 is the number.
This will be the signal ,a flight to treasuries and the start of Deflation.
More important the cash bond sitting at 4.7 ,close to the
4.6%.The Fed will be trying the throw liquidity into the market by keeping the rate above.
Interesting times.
four day drop -- Cyclist, 08:18:21 05/07/03 Wed
This purge will last for 4 days.To reposition for the last
run up..:)
While the practice of reducing gold hedge books was widely predicted to continue in 2003, the level of unwinding activity wasn’t expected to be as pronounced as last year. But that hasn’t been the case so far, and that’s been good news for the gold price.
According to leading global gold analyst, associate director of metals and mining at Macquarie Bank, Kamal Naqvi, the rate of dehedging in the March 2003 quarter appears to have mirrored that of the final two quarters of calendar 2002. And with some gold producers - including the biggest, Newmont Mining Corp - yet to report their March quarter results, the eventual total volume of dehedging for the quarter may actually signify a slight acceleration.
Unveiling of further pro-active dehedging undertaken this year, even by the most avid hedgers such as Barrick Gold and Sons of Gwalia, worked in favour of the gold price last week, which bounced back above US$340 an ounce for the first time in about six weeks. The big decline in the global hedge book was undoubtedly one of the key developments supporting the gold price, agreed London-based research group, Gold Fields Mineral Services.
During the March 2003 quarter, Barrick, AngloGold, Placer Dome and SOG all cut their books by approximately 1 million ounces or more each. Macquarie Bank estimated that the worldwide gold hedging position had been reduced by another 4.5Moz or 140 tonnes in the quarter.
And noises from the major gold producers suggest closing out of hedge contracts would be maintained at a similar intensity, in the short term at least. For instance, recently appointed Barrick chief executive, Greg Wilkins, has indicated the company intends to have a smaller - about 20 percent of reserves hedged instead of 35 percent at present - and simpler forward sales program incorporating plain vanilla spot deferred contracts.
Explaining the reason for the anticipated dehedging drop-off not happening and resilience in the gold price, Naqvi pointed out the main issues that had fuelled the wave of dehedging over the past 15 months or so still applied.
One popular excuse for weak gold prices is the lack of product and distribution. It is really a coded phrase meaning that the majority of Western investors would prefer to own gold in a non-physical form.
It is not difficult to buy gold if you desire it. You can buy gold coins by mail order in most places while dealers of one sort or another dot every major city in North America, Europe and Japan. Walk in, put your money down and take home your gold. If you’re a more substantial player, you can also buy futures contracts and take delivery of large lots.
For modern gold marketers the base of investors who like to buy physical gold in this way has been declining, so they have had to switch to alternatives which amount to a single thing whatever they are called - securitized gold. Whether it’s GoldMoney’s goldgrams, gold stocks, gold futures on Comex, precious metal mutual funds or the forty year old Central Fund of Canada [CEF], investors are buying paper that promises to represent gold in some way.
What is PMG?
The Perth Mint Gold Quoted Product ("PMG") is essentially a right created on-market by Gold Corporation to enable you to invest in gold on the Australian Stock Exchange ("ASX"). PMG is structured as a call warrant in accordance with the ASX Business Rules. Each PMG entitles you to acquire one hundredth of a troy ounce of fine gold on or before the Expiry Date of 31 December 2013 and may be exercised by you at any time before the Expiry Date.
Gold Corporation has made an application for admission of PMG to quotation on the ASX. You will be able to acquire PMGs through your stockbroker when it is quoted on ASX. The expected quotation date is 16 May 2003.
The ASX price of the PMG is intended to track closely the international over-the-counter market spot price of gold and will be based on the market value of the gold backing a PMG at the time of purchase.
just a thought -- Cyclist, 17:12:29 05/06/03 Tue
Deflation looming, signalled by the 30 year bonds.If and when 4.6% breaks we will be moving into a runaway deflationary spiral of global proportions when credit is drying up and people scrambling for safety.
The 30 year bonds are projected to hit 2% by November.The stockmarket will be toast,with a spike down into November.
Gold will get taken down initially as well ,especially the goldstocks for lack of liquidity.
Cycles short term will give gold a high on Wednesday with a short break after, with a final
peak end of May.2004 will be the year for gold ,especially silver.
Crude is probably rebounding to 28/29 short term and looking for a low in the 19/20 support area around December.
The exception will be NG,its chart is looking very nice and ready for a major move next winter.
All the above IMO only...have a good day
A very good evening to Jim Sinclair, the man the Americans call Mr Gold. Well, Mr Gold, it seems like we got you on the right day. The gold price is up nicely, $342.50 as we speak right now. Before we go into more of the broader background and where you think gold could go, Jim, what caused this last little rally?
Gold may have retreated from its pre-war highs, but the bull market will persist for at least the remainder of 2003, according to research house AME Mineral Economics.
AME said a combination of political tensions, the threat of recession, the outbreak of SARS and fundamental factors would underpin the gold price.
It said tangible supply and demand factors supported a long-term price rise out to 2007.
"This includes a levelling off of mined supply, an increase in end-use fabrication, reduction in hedging activity, controlled official sector sales, deregulation of key markets and a concerted industry marketing effort to promote gold both in jewellery and as an investment."
AME's new report, GoldMine Costs 1998-2007, said a sustained period of falling exploration expenditure due to low industry profit margins would result in a fall in gold supply.
It said the estimated 2515 tonnes of gold mined last year was the lowest since 1997 and marked the first time since 1995 that annual gold production had fallen.
China's gold market has been given another major boost with the recent abolition of policy barriers by regulators.
"The removal of the barriers will play a key role in spurring the country's gold market, and it could forge closer integration with that of the world," said Roland Wang, general manger of the China branch of the World Gold Council, an organization formed and funded by the world's leading gold mining companies with the aim of stimulating and maximizing demand and consumption of gold.
The new policy, which was released by the People's Bank of China, cancels more than 20 regulations barring gold production, processing and sales.
It loosens the central bank's control over trading in China's gold market.
~~~
But the market remains closed to individual investors.
"The founding of the SGE is the first step towards a liberalization of the gold market in China, and the abolition of the rules play a key role in reforming China's gold market in a wide range of areas, such as investment, manufacturing, processing and sales," said Wang.
China has outperformed a number of key players on the global gold market, becoming the world's third-largest gold consumer. China's gold demand reached 202.3 tons last year, putting it behind only India and the United States.
~~~
"Intensified competition will bring sweeping changes to the market, including consumption and the quality of gold products," he said.
Gold is highly valued as a precious metal in China and appreciated as a symbol of wealth.
Growth of jewellery gold consumption has slowed down in recent years after being hit by intensified competition from other forms of jewellery, such as platinum jewellery - preferred by young Chinese in particular.
China outpaced Japan to become the world's largest platinum market a few years ago.
However, experts believe the gold market will see explosive growth once it opens to individual investors as the major use of gold is still for jewellery. Statistics reveal China's demand for gold could increase by 100 tons a year after full liberalization, constituting 30 per cent of the annual increase in gold consumption in the world.
Federal Reserve Governor Ben Bernanke renewed his call on Saturday for the United States to join other countries and adopt an openly stated inflation target.
~~~
Fed Chairman Alan Greenspan has his doubts about inflation targeting although some other U.S. central bank officials, particularly some presidents of the regional Fed banks, share Bernanke's point of view.
"I don't want to completely unravel our monetary policy -- this is already focused on price stability. But there is a need for better communication on how decisions are reached," he said.
~~~
Bernanke went on to say he did not think the United States faced deflationary pressure.
"There is no risk of deflation at the moment," he said.
The inflation rate was low, but still positive, and the economy was growing and the banking system was healthy, he said.
"Only an extremely unlikely chain reaction of unfortunate events could increase the risk of deflation," he said, adding that should this happen, the Fed was ready to deal with it.
A new South African mining giant has been hatched through a merger agreement between African Rainbow Minerals Gold (ARMgold) and Harmony Gold.
While the merger, announced shortly after the JSE Securities Exchange’s close on Friday, is still subject to several conditions, it is highly likely the two companies will become one under a new Harmony banner.
In a statement, the two companies said the merged entity will be 26% controlled by “historically disadvantaged South Africans” and will be the world’s fifth largest gold producer. “Conspicuous and distinctive emphasis” will be placed on the letters ARM to include ARMgold’s identity in the new Harmony name.
The enlarged Harmony will mine more gold within South Africa than any other producer including Harmony’s suite of mines, the Freegold joint venture, ARMgold’s other interests and a stake in the rich Target mine owned by Avmin-controlled Avgold.
Of course, 160 days is a nanosecond in the business, but shareholders were told that Barrick was hearing them loud and clear; a new broom was sweeping clean. Munk said the lagging stock price was unacceptable and seemed to agree, between the lines at least, that the company had erred with its aggressive hedging.
That was reinforced by Wilkins and other management subsequently talking about reducing the hedge book. Nevertheless, the company has continued to say exactly what Oliphant always said - that the book was flexible and unlikely to blow up at higher gold prices. Indeed, the flexibility was proved over the last quarter when the company blended contract and spot sales, whichever delivered the highest prices.
An intermediate term buy signal is near. When I bring gold into the mix, not only does the cyclical picture fit but, it’s outright ugly. The stock market appears to be topping at an intermediate term top. The Dollar is showing serious signs of weakness and appears to be on the brink of breaking through an intermediate term low. Gold is forming an intermediate term bottom and appears to be setting up for another advance. I expect to see a long signal within a couple of weeks and possibly sooner.
In the early stages of this new gold bull market that got underway in the latter part of 2001, shares of gold mining companies led the way. While the yellow metal itself plodded higher but in a relatively unspectacular way, gold shares soared; our recommended basket more than doubled between the Fall of 2001 and the sector’s peak in June, 2002.
Since that time, however, gold shares have under performed the metal itself. Even a brief, albeit unsustainable, spike in spot gold to $390 per ounce in early February failed to bring mining shares along with it commensurately; even at that point (with gold $60 higher) the gold mining sector couldn’t move above last June’s levels.
Gold shares did seem ready to regain their usual role of anticipating a new upward move in gold when, back in mid-March, they bottomed and then turned higher, even as gold itself continued to decline to its recent lows a shade under $320 per ounce. Curiously, however, the gold stock sector again began to slip; first failing to move convincingly above key resistance levels and then-until the last couple days-failing as well to keep up with a gold price which suddenly has some substantial tail wind.
Jay Taylor, chief executive of Placer Dome Inc. , North America's No. 3 gold producer, said on Wednesday he expects gold to trade at $320 to $360 an ounce in the short term as the market finds balance after a run-up earlier this year.
"I have always said that to have a sustainable gold industry we need $350 (an ounce) gold at least, but at $330 we're not quite there, but it is healthy enough for the industry," Taylor told Reuters.
Gold was at $339 an ounce on Wednesday, down from the 6-1/2-year high of $381.50 it reached in early February.
Taylor said he was willing to reduce Placer's gold forward sales program to about 8 million ounces, or 15 percent of gold reserves. The company said on Tuesday it had reduced the program to 11.5 million ounces and plans to take it below 10 million by the end of 2003.
AngloGold would continue to be bullish about the gold price which this afternoon broke above its 200-day moving average to post its highest level in more than a month, group chief executive Bobby Godsell said today. The remarks were made only hours before bullion jumped more than $4/oz to trade in New York at $339/oz.
~~~
“There has been no recognisable liquidation of long positions by funds who have moved into gold over the past year and a half. It is the only market where funds have steadily held their long positions,” said Williams. The apparent faith in the gold market came, he said, despite the drop in the bullion price after the evaporation of the war premium, shortly after the US attacked Iraq.
~~~
“In the medium term, however, important economic factors will continue to favour gold. Most important of these are the health of the US dollar and the state of major equity markets. The US economy remains vulnerable, and the US dollar is likely to continue to lose value in the medium term,” Williams said.
Two South African gold miners expressed opposition to government’s proposed Royalty Bill yesterday, voicing concern that marginal producers especially could be adversely affected by the legislation.
Presenting financial results for the quarter ended March 31, Durban Roodepoort Deep (DRD) reacted negatively to government’s proposed 3% royalty on gold producers’ revenue.
The company’s chairperson and CEO, Mark Wellesley-Wood, said the recently-released Royalty Bill would lead to increased costs, raise pay limits and decrease the life of mines.
"This will be an additional cost and will serve to sterilise gold reserves, reduce the attraction in investment in gold-mining and result in lost jobs," he said.
He added that marginal operators, such as DRD, and empowerment joint ventures are likely to be hit hard by the “unfair tax”, specifically as there would be no risk-sharing between government and mines.
AngloGold chief executive Bobby Godsell, has warned that trading conditions will remain difficult for the gold producer for the remainder of this year as currencies in the group’s key operating regions remain strong against the dollar.
“Looking ahead to the rest of this year, we anticipate that the currencies in which our costs are predominantly denominated, particularly the South African rand, will maintain their strength in relation to the US dollar for the remainder of the year and have revised our planning assumptions accordingly,” Godsell said in a statement. The rand - currently priced at R7.16/$ - is at around 30 month highs to the dollar, whittling away rand-denominated income for South Africa’s exporters.
AngloGold was the third of South Africa’s gold producers in line for a steep drop in earnings for the March quarter, after being hit by traditional lost production after the Christmas break and the strong rand. Godsell said planned lower grades, which fell from 8.04g/t to 7.87g/t on average, had also impacted on production levels.
Gold mining companies are heading for a crisis because of the rand's gains against the US dollar.
More than 10 000 jobs are under threat and the industry has warned that more may follow.
The grim news emerged yesterday with the March-quarter results of Durban Roodepoort Deep (DRD) and Harmony Gold Mining.
DRD said it was retrenching 1 000 people and two of its mines - East Rand Proprietary Mines and Hartebeesfontein - might have to close.
Harmony said further strengthening of the rand could threaten 10 000 jobs and slow down planned capital spending.
Things might get worse.
In rand terms, the gold price has plummeted from the R95 000 a kilogramme average received by most gold companies in the March quarter to a spot price of R75 000 yesterday.
This suggested that poor June-quarter figures might lead to more job losses as companies came under even more pressure, particularly those with marginal operations.
Mark Wellesley-Wood, the chairman and chief executive of DRD, said it was this environment that made mine planning and investment in South Africa very difficult.
"We cannot hold our breath ... We are having to rightsize our South African operations to remain competitive," he said.
~~~
Bernard Swanepoel, the chief executive of Harmony, said: "Now that the rand is the strongest currency in the world, South African mining companies don't look as smart."
~~~
"The rand is overly strong but one or two bad quarters will not wipe out the gold industry. There may well be job losses but it does not mean that the entire mining industry is under threat," he said.
----
It amazes me how the board complains yet the price is still higher than a couple of years ago.
That they complain & yet quote the top of a bubble price as a yardstick smells of chicanery - it smells Enronesque to me.
The dollar fell to its lowest level in more than four years against the euro on speculation employment and manufacturing reports this week will highlight the U.S. economy is struggling to rebound.
The dollar dropped to $1.1127 per euro at 10:10 a.m. in London from $1.1035 yesterday. It earlier fell as low as $1.1137, the weakest since Feb. 19, 1999, and is headed for a ninth consecutive losing month against the euro. The dollar shed 5.5 percent against the euro this year and almost 19 percent in the past year. It weakened to 119.48 yen from 120.09 late yesterday.
U.S. manufacturing shrank as the world's biggest economy shed jobs this month, economists surveyed by Bloomberg News expect reports tomorrow and Friday to show. Concern about the economy, the current account and budget deficits, and lower interest rates than in Europe ensure the dollar won't recover soon, investors said.
Contrary to market commentary, the Sales by the Portuguese Central Bank were within the terms of the Washington Agreement. Portugal is in line with their Agreement! What does this mean?
What we believe is that these sales are the most dramatic pieces of news to come out of the market for some considerable time. These factors will soon precipitate the steady, or accelerating upward path of the gold price. It is a factor that we had foreseen, but not this early in the Central Bank’s timetable. We will probably see our own forecasts made conservative.
We at Gold-Authentic Money have interpreted the Washington Agreement as designed to precipitate an orderly turn in the gold market from a falling price to a rising price.
The market will now seeing confirmation of our belief that the Washington Agreement will prevent “Official” supplies reaching the market, above the 400 tonnes.
The sharp rise in gold prices in 2002 boosted global investment demand for the yellow metal to a 35-year high, but cut its use in fabricated products, precious metals research firm CPM Group said on Tuesday.
In its Gold Survey 2003, CPM reported that investors bought 26.9 million ounces of gold bullion on a global net basis during 2002. That was the most in any year since 1967, more than doubling the 10 million ounces purchased the year before.
"The dynamics of the market are that investors, stimulated by international financial, economic and political conditions, raced to buy gold last year," CPM said in its report.
Spot gold finished 2002 worth about $350 an ounce, after starting last year at around $278. On Tuesday, spot was quoted at $333.45/334.15 in afternoon trade.
But the use of gold in jewelry, electronics and other fabricated products last year fell 11.2 percent to 91.5 million ounces, its steepest decline since gold prices spiked to $825 an ounce in 1980 as investors bumped consumers out of the market, CPM said.
The report also said that mined production of gold in 2002 fell 5.5 percent to about 63.1 million ounces. The research firm projected 2003 mine output of 61.7 million ounces, off 2.2 percent.
Total gold supply rose 2.2 percent last year to 106.1 million ounces, CPM said. It forecast 2003 total gold supply at 101.2 million ounces, down 4.6 percent.
The rise in prices also stimulated increased supply from scrap last year, CPM said. Secondary recovery from old jewelry and other scrap jumped 18.3 percent in 2002.
Periodic Ponzi Update PPU -- $hifty, 21:32:35 05/04/03 Sun
The U.S. economy, and with it the global economy, is poised on a knife-edge. Given cost-cutting and deferred capital replacement, a dramatic boost in demand growth aimed at stabilizing, even boosting, falling inflation is urgently needed to launch a sustainable global recovery. Conversely, static to weaker demand growth will lead to lower inflation or even deflation. Either outcome will force the continuation of another round of layoffs that, ominously, has already begun in the United States.
~~~
The High Price of Change
Taken altogether, the lackluster performance of the economy, the distraction of the war, and the hesitation by the Fed and other central banks, coupled with a sharp scaling back of U.S. fiscal stimulus, make it likely that by the end of this year we shall see the Fed targeting higher inflation after having been unable to avoid a U.S. double-dip recession that precipitates a global recession. Needless to say, we can all hope that this will not be the case, but history has shown that the moves by central banks to target higher inflation rates and thereby stimulate demand growth are undertaken only with the greatest reluctance, if at all.
I was surprised to learn this past week that Portugal was a signer on the Washington Agreement. Since 1999, the gold seller queue was well known to gold market participants and Portugal wasn't on it. Nevertheless here comes Banco do Portugal completely unannounced to sell ninety tonnes of gold over the last three months. The World Gold Council makes reference to the sales as resulting from previous option agreements going back to 1997 and 1998.
Reading between the lines, this translates to Portugal having its gold called away by some unknown buyer. Leaving the more generalized questions having to do with why any central bank would jeopardize its valuable gold holdings in order to draw income from a call writing program, let's concentrate on two, more vital questions (at least with respect to the gold market):
~~~
On the second, and perhaps more important, question having to do with the investor education conveyed by such maneuverings, Portugal's dalliance might be instructive more for what it reveals in the complicated overall politics of money and gold than it does with respect to the mathematics of the Washington Agreement. It cannot be overlooked that Portugal was 'called' during a period of rising gold prices and a roiled international economic and political environment. It appears that this gold fed into the market by Portugal has someone's name on it - someone interested in taking delivery, otherwise the recipient of the metal would have settled in paper, payment would have been rendered (in paper), and none of us would have been the wiser. No. . .someone wanted this gold and if they are holding any more Portuguese gold paper, they are likely to want more. It is unlikely thatPortugal's gold will see the light of day for the interim, or at least until the developing international monetary and political crisis has blown over.
The situation with Portugal's gold tells more about how 'the players' see the world of gold and money than a treatise on the subject, and sets an indispensible example for individual portfolio planners wondering whether or not gold should play a role in their own holdings. MK
South Africa’s resource stocks today took their most severe beating since the infamous leak of the Mining Charter last July as the rand soared to its strongest level in more than 30 months.
Sellers offloaded in spectacular fashion throughout the day, driving all of the major mining indices lower. The overall Resource Index pulled back some of its losses in the last half hour of trading to post a 5.7 percent loss and hit its lowest level since October 2001. Traders said they could not pinpoint the origin of the selling, although one senior equities dealer said it was likely to have come from foreign investors. "It was inching down all day, but it picked up pace after New York opened. They got to their desks, saw the rand and said 'Hey! We're out of here'," said the dealer.
Mining companies are typically hardest hit by rand strength, given that they have the bulk of their costs in rands, but sell their products in dollars. The weaker dollar relative to the local currency means their revenues shrink when translated to rands.
The gold index, sheltered to some extent by the safe haven buying in the face of the weaker dollar, shed a more modest 3.6 percent.Platinum shares, however, took the full brunt of the sell-off and their index ended the day 4.11 percent lower at 20085, their lowest level since September 22 2000.
Bullion has hit the 'teenage' phase of a 20-year bull run, but rand strength is a problem, writes Hilton Shone
Gold is poised for a sustained bull run, offering investors increasingly good value and solid returns over the medium and long term, says Victor Hugo, an independent analyst at HugoCapital.com.
Hugo notes in his latest research that a typical long-term gold bull market lasts between 18 and 21 years. He says : " We are only in the fourth year after a trend change from a lengthy bear market to a bull one.
"This suggests that the gold price is now only in the teenage phase of a long-term bull market."
Hugo says 1999 "may have been the final trough of the bear market in the wake of the Bank of England selling and international co-operation to support the US dollar".
The Bank of England, the UK central bank, announced in May 1999 that it would sell 415 tonnes of its total bullion reserves of 715 tonnes, sparking a slump in the price of bullion to around $252/oz - a 20-year low at the time.
But supporting a firmer gold price now is the weak dollar.
Hugo says the US currency "is still vulnerable to a 30%-35% sell-off within the next two years, which also shows scope for a stronger rand, even if current economic fundamentals don't improve".
ESQUEL, Argentina -Just a month ago, investors were buzzing about gold buried in the hills and dells of Patagonia and government officials were predicting that surging gold prices and Argentina's cheap peso would stoke a boom in mining and attract billions of dollars.
But now that voters in this mountain town have turned against a $720 million gold and silver mine to be built by Meridian Gold, a mining company based in Reno, Nev., investors are thinking twice about mining in Argentina.
''The worry is that antimining forces will spread,'' said José Luis Andrich, who publishes a mining newspaper called Prensa Geo Minera. ``This puts at risk all future mining investment in Argentina.''
One of the popular theories of the 20th century was that political freedom and economic freedom can be separated -- that a nation can regiment its economy and monetary system with centralized controls and still remain politically free. History, however, is proving this premise to be a sad illusion. And today's Washington D.C. is a most obvious example.
Like a modern day Cyclops with one eye and a stunted brain, our Federal Government now grows fatter and fatter every decade as it corrupts the forces of freedom and the soundness of our money in its lust for hegemony both domestically and internationally. Grunting and belching, regimenting and taxing, spending and consuming with the abandon of a drunken Caesar, this gargantuan beast has, in the span of 90 years, transformed a once productive marvel and manufacturing leader of the world into a decadent debtor nation hellbent to follow Rome into the dustbin of history.
The two levers of power that have allowed Gargantua to grow into such a hideous beast were given to it in 1913 with the enactment of the Federal Reserve and the progressive income tax. These two institutions destroyed the idea of "limited government" that the Founders had given us in 1787. The Federal Reserve was granted the legal power to create paper money and thus rob Americans of their wealth surreptitously. With Nixon's closing of the gold window in 1971, this power then allowed the Fed to inflate the currency at will, which has increased Washington's capacity to depreciate the dollar even further and rob Americans of their wealth even faster. The progressive income tax gave to the Federal Government the power to sieze unlimited earnings from productive Americans to buy election day support from masses of parasitical Americans.
These two institutions were the death knell of a free and prosperous republic. With the ability to print money and confiscate our incomes, the Federal Government was thus able to grow exponentially over the past century -- well beyond the strictly constrained power that the Founding Fathers intended it to be.
If we, the producers of America, wish to stop this travesty of tyrannization over our lives, we must challenge these two institutions that give Gargantua its power to grow unabated. We must mount a relentless political attack against the policies of PAPER MONEY and PROGRESSIVE TAXATION. The Big Government-Big Banking combine has, for 90 years, crucified us on a cross of paper and progressivity! And it will continue to do so until it is exposed in a clear enough way to attract large numbers of voters. When kitchen lights are turned on cockroaches in the dead of night, they scurry frantically for cover. In like manner, we must shine the light of truth upon the corporate statists of Washington who are using paper money and progressive tax rates to insidiously expand their agenda of world-wide collectivism.
The Shanghai Gold Exchange may open its doors to individual investors before the end of June, a top executive of the exchange told Shanghai Daily yesterday.
"The People's Bank of China hasn't yet issued the official license for the new business. But it has confirmed that we can take in individuals as soon as the four authorized commercial banks have completed their preparatory work to conduct the business," said Shen Xiangrong, council director of the exchange.
Individuals will be allowed to buy or sell real bullions, or trade in deposit accounts through the Industrial and Commercial Bank of China, the China Construction Bank, the Agricultural Bank of China and the Bank of China, which act as agents between investors and the exchange.
A gold price of $400/oz is a likely sustainable level if the dollar continues to weaken. This is the view of Reg Ogden, investment executive of Canaccord Capital Corporation in Vancouver.
Ogden expects the dollar to weaken by 20% over the next two to three years. “All currencies become overpriced and underpriced, and I expect it to become undervalued, the US dollar, before it comes out of this trend that it's in.”
His gold price forecast will come about mostly because of a change in the US currency, he says: “In that sense I’m bullish on gold.”
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Ogden says the long-term trend for gold is a function of prosperity, rather than adversity, despite the numerous commentators that put gold’s spike down to being a safe haven in times of uncertainty: “It's not really much of a monetary haven. Or hasn’t been since 1980.” Rather, says Ogden, as countries become more prosperous, the demand for gold goes up.
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Apart from the weaker dollar, gold will also be driven by factors including the increasing demand for jewellery: “I do see a phenomenal increase in the use of gold for jewellery,” says Ogden. He says this will come in particular from China because gold as a huge economic significance to the Chinese people. Most of the buying currently comes from India, where gold has religious significance, but he believes this will decline: “as India becomes urbanised, I don’t expect a rapid escalation of gold purchasing.”
Overall, the precious metals experienced a rather good week last week, with gold continuing its upward bias with gains of $6.10 for the week, after convincingly moving through several significant technical resistance levels. Silver, still following the movements of the gold market like a lost puppy, was up considerably to close up over 16 cents for the week. These rallies in both of the above markets were expected, and I strongly believe that we will see continued strength, especially in gold.
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Now that the first stage of the Iraqi conflict is over, the market can now revert to its former trend, and that direction is most decidedly higher. Gold was rallying BEFORE the war, and now can move higher, in a grinding manner, AFTER the war. The bull market in gold is based upon its quite solid fundamentals, and these considerations moved gold from the $250's to the $330's. The gold market then withstood the onslaught of the speculative crowd, which pushed gold all the way to $390, and then as these short-term traders sold, ALL the way back to $320.00. The lesson to be learned is that sharp rallies in gold, based upon global fears and safe haven buying, RARELY if ever hold. Once the fear dissipates, the gold market tends to retreat to support, defined loosely as the level at which physical demand re-enters the market. "Paper" buying and "paper" selling can move the gold market dramatically, but all downward price movements are curtailed when the global investor, or jewelry buyer, comes back and demands actual physical product. And, when you look at the gold market over the past several years, these buyers of physical product are more and more comfortable buying at successively higher levels. Nothing could argue more decidedly that this a long-term bull market.
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The major influence on the gold market at present must be considered to be the worrisome state of the USD. Just last week, this currency was down 1%, now flirting with the lows reached last March. As gold is priced in USD worldwide, any depreciation of this currency strongly encourages buyers as the prices in local currency becomes cheaper. And, as the USD shrinks, US investors seek to shelter their assets by buying "value," in the very best, and most stable sort of "safe haven" buying. Please note that most analysts and economists hold out very little hope of a long-term revival of the value of the Dollar. It looks like a one-way street from here.
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Three leading USA senators have introduced legislation to authorize research into alternative wood preservation treatments for wood using silver-based biocides, rather than the arsenic-based wood treatments currently being used. The EPA currently has a plan to phase out the use of arsenic in all wood by December 2003. If silver-based biocides were used as an alternative (and this is a very very big IF), potentially over 100 million ounces of silver a year would be consumed (and probably unrecoverable forever), in this application. Now, with annual production of silver in the 850 Million ounce a year range, this could have major impact on this market, as over 10% of the total production would now go into a new usage where its recovery as scrap is impossible. The fundamentals of this market would change dramatically. But, don't get excited yet. It is still a long way from becoming reality.
4. Prechter, the deflationist, has the character of a preacher and a huge PR campaign to sell his book. He has scared the life out of gold share holders based on what I believe is a flawed analysis of both the history of gold in the 30s and the history of gold shares over a longer period of time.
Richard Russell -- Sharefin, 21:05:51 04/28/03 Mon
Gold -- I've received a number of e-mails which ask the same question: "Russell, if gold is in the early stages of a bull market why are you only recommended 5% gold coins and 5% in gold shares? Why not load up now?"
And my answer harkens back to the 1970s. I was buying US gold coins (any other kind was illegal) in the early '70s at $60 to $70 a piece. At that time those few early gold-bugs that I knew were gung-ho for gold to move higher. But weeks dragged by, months dragged by, years went by -- and gold remained sluggish.
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So back in the early and mid-1970's we all waited and waited and waited -- for gold to rise. Months went by and -- gold went nowhere. So what in hell was wrong with gold? Then it happened -- gold started to take off.
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And that's why I say 10% of your assets in gold at this time is enough -- at least enough for my average subscriber. I don't want subscribers staying up at night listening to the radio for news of gold. I don't want subscribers pulling their hair out because gold or gold stocks are not surging. I've said that subscribers should take a total 10% position in gold and then "forget about it."
Ultimately, the dollar will head south in earnest. With a budget deficit of over 5% and a trade deficit of 5% or more, no currency can hold up in international markets against those odds. In time I expect to see competitive devaluations among almost all the major currencies. The international export business is a vicious and deadly serious game. Nations receive an export advantage if their currencies decline. The temptation by nations to degrade their own currencies will be too tempting to resist.
But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. --Frederic Bastiat
As Mark Twain once said, "It's sound sentiment, but bad judgement." When I see something like this, the first thought that crosses my mind is, "They don't know `sic 'em' from `come here'." This is actually a fiat money scheme masquerading as sound money. It's 'social credit" dolled up in a silver robe.
Think about it. Each ounce of silver has a market value of only US$4.50. The US$50 million circulation authorised would use only 2.5 million ounces of silver. The silver would be forced into circulation with a legal tender (gun to your head) value of US$20 each, about four times its market value. In other words, of the US$50 million to be circulated, about US$37.5 million would be created out of thin air
This is a paper money scheme, but they're printing it on silver instead of paper. The logic behind this seems to be, 'If the federal government can create money out of thin air and profit from it, why not the state?" At the foundation this is a social credit/paper money scheme, because they are trying to fix the price of silver above market. They have completely missed the "value for value" concept of gold and silver money. Mercy! Even our "allies" are our enemies. The worst thing about a monstrosity like this bill is that it throws genuine reform into disrepute.
Question 1: Your new book was recently released by J. Wiley & Sons. In the book you argue that the current International monetary system is in danger of collapse. Could you explain why you believe the present international trade system is a danger to all of us?
Answer: It is the imbalances in the international trade system rather than the system itself that poses the danger. The United States’ Current Account deficit is now $60 million AN HOUR! It increased 28% in 2002 to half a trillion dollars, an amount roughly equivalent to 5% of US GDP. This unprecedented trade imbalance has created extraordinary disequilibrium in the global economy. The countries that build up large stockpiles of international reserves due to large current account or financial account surpluses-such as Japan in the 1980, the Asia Crisis countries in the 1990s and China today-develop bubble economies. When those bubbles pop, as they inevitably do, they leave behind banking crises and excess capacity. The governments of those countries must then go deeply into debt to bail out the depositors of the failed banks. At the same time, the excess capacity in the economy results in deflation. Economic bubbles and systemic banking crises can be expected to reoccur and deflationary pressure can be expected to persist so long as the US Current Account deficits continue to flood the world with dollar liquidity.
Question 2: In your book you write that the current system is neither good for the countries who export goods to the U.S. nor ultimately to the U.S. How can a system that has brought such growth to so much of the world be bad?
Answer: Ultimately, the imbalances in the system are harmful to the United States’ trading partners and to the United States itself. The countries with overall balance of payments surpluses are destabilized through the rise and collapse of economic bubbles. Ironically, the US current account deficits also helped fuel the New Paradigm Bubble in the United States. The surplus nations earn their surpluses in US Dollars. They must either invest those dollars in US dollar denominated assets or else convert the dollars into their own currencies. If they convert such large amounts of dollars into their own currencies, those currencies would appreciate sharply, putting an end to their trade surpluses and perhaps driving their economies into recession. Consequently, they park their surpluses in US dollar denominated assets instead. By investing their dollar surpluses in US dollar assets, the trading partners of the United States helped fuel the stock market bubble, facilitated the incredible misallocation of corporate capital, and, by acquiring Fannie Mae debt, contributed to the dangerous rise in US property prices.
The imbalances in the current international monetary system are also bad because they are unsustainable. The United States cannot continue going into debt to the rest of the world at the rate of $1 million a minute indefinitely. The net indebtedness of the US to the rest of the world is already approximately $3 trillion or 30% of US GDP…and its now growing at roughly 5% of GPD per annum. The economies of most of the United States’ major trading partners have grown dependent on exporting much more to the US than the US imports from them. When the United States current account imbalance returns to equilibrium, and it eventually must, the era of export led growth will come to end and the world will find itself without an engine of economic growth.
Periodic Ponzi Update PPU -- $hifty, 20:14:58 04/27/03 Sun
a href="http://home.columbus.rr.com/rossl/gold.htm">Ponzi Chart
When you choose to write about one topic, you develop certain patterns. For example, I report on known facts and widely accepted statistics and reach what many regard as extreme conclusions on the future price course for silver. I also attempt to convince readers that my extreme conclusions will be proven correct. As most readers know, I expect silver to move higher in a violent manner. For me it’s a black or white issue. Silver, when it begins its real move, will not move in a normal or orderly manner. I'll explain why I think it must explode to a true free market price. Let me add, however, that the timing of exactly when the real move will commence is unknowable, at least by me.
Silver, alone among all commodities, has been in a long-term structural deficit. Current consumption exceeds current production, necessitating the physical depletion of existing inventories. Whether this structural deficit began over a decade ago, or over a half-century ago (as I believe), it is a phenomenon that has never occurred before. The documented disappearance of visible and known inventories of many billions of ounces of silver inventory (some six billion alone from the former largest holder of silver, the U.S. Government) confirms the existence of a deficit exceeding, on average, 100 million ounces annually for 60 years.
We also know that silver is generally an indispensable, but very low cost, component in thousands of vital modern industrial applications. Silver is the best known conductor of electricity and heat, the best reflector of light, in addition to its photographic attributes. The small amount of silver, per item, in these applications renders the price of silver inelastic, i.e., even large increases in the price of silver will have a small impact on the final total cost per item. There will be no falloff in demand at anything less than shocking silver price increases. Even where silver is used in an almost pure state, like jewelry and silverware, the fabrication component of final total cost per item is larger than most people realize. For instance, there may be no more (and maybe a lot less) than 50 cents worth of silver (at current prices) in a $10 pair of earrings. If silver rose to $20 an ounce, the cost of the silver in the earrings rises to $2. That would raise the price of the earrings $1.50, hardly a disaster to jewelry manufacturers or consumers.
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It is clear to me that the silver market has been sleeping for 15 years, much like an active volcano sleeps over a long period of time. But it’s a serious mistake to assume that something that is sleeping is dead. And just as years of inactivity can lure settlers to the base of a volcano, the silver traders, users and producers tend to assume this long-term price inaction portends nothing but continued inactivity. Unlike a real volcano, I think I can prove that the silver volcano must erupt.
The simple proof that the silver market must explode, like the most powerful volcano in history, lies in understanding exactly why it has been sleeping for the past 15 years, even though it has been in a widely acknowledged deficit and inventories have been evaporated to the point of extinction. If it's impossible to have documented deficits and verified disappearing inventories in a flat price environment in a free market, then the most obvious conclusion is that we have not been in a free market. If it has not been a free market, then it has been the only other thing possible, a manipulated market. Further, I have taken great measures to describe how the manipulation took place, namely through leasing and the excessive and uneconomic naked short selling on the COMEX.
One of the statistics complied by the International Monetary Fund is the quantity of gold owned by the world’s central banks. That weight is reported to be 32,291 tonnes of gold. Most people accept this number at face value and without questioning its accuracy. However, central banks actually own less gold.
In reality central banks own 32,291 tonnes of gold AND gold receivables. This distinction is important. From both a legal and an accounting point of view, gold in the vault is clearly very different from gold owed to you. The reason is that gold in the vault is much less risky than someone’s promise to pay you gold.
This distinction between these two unlike assets is one of the most basic principles of accounting, namely, that cash is different from a receivable. For this reason, cash and accounts receivable appear as two different line items on balance sheets prepared according to generally accepted accounting principles. But some central banks do not report their gold assets using these sound and well-established accounting standards.
For example, the Bundesbank discloses in its 2002 annual report that it has €36,208 million of “Gold and gold receivables”. It further sustains the fiction that these two different assets are one asset by stating in the footnotes to its financial statements: “At the end of 2002 the Bank's holdings of fine gold amounted to 111 million ounces.” The Bundesbank does not, however, state anywhere in its annual report what portion of its gold is stored in vaults and what portion has been removed from the vault and placed at risk by being loaned.
Another central bank with a large gold asset is the Banca d’Italia. According to its 2001 annual report, which is the latest report available: “Monetary gold reserves were 48.1 trillion lire (EUR 24.8 billion, or $21.9 billion).” One would think from this statement that this “gold reserve” is sitting safely in secure vaults, as a reserve. But this central bank too has been withdrawing gold from the vault and placing it at risk. Its balance sheet also records “Gold and gold receivables”, and like the Bundesbank, it fails to disclose how much of its gold has been loaned.
In contrast to these reports by the German and Italian central banks, the annual report of the Banque de France shows that none of its gold has been loaned. There is no gold receivable reported by it, so none of its gold has been placed at risk by being loaned.
There is also a third category of reporting. The Swiss National Bank, for example, uses generally accepted accounting principles to prepare its financial statements. Not only does it disclose that 254.7 tonnes of its 1,661.9 tonnes have been loaned, it provides information to assess the level of risk. For example, 158.7 tonnes were loaned on an unsecured basis.
Another central bank that discloses its gold lending is Banco de Portugal. According to its latest annual report, it has removed from the vault and placed at risk 434.1 tonnes of its 606.7 tonnes, or 71.6%, which is relatively much greater than the percentage of gold placed at risk by the Swiss National Bank, which is 15.3%.
Last week the discussion of the valuation of gold mines ended with the possibility that the prices of marginal, unhedged mines with extensive reserves that can at present not be mined profitably could increase 10-fold and more, should the gold price really get going. By ":really get going" the implication is a gold price of some thousands of dollars per ounce, as is being bandied around in certain circles - circles that are seen to consist of the more wayward of the gold bulls; those thought way out even by people who are believe a gold price of $600 or $800/oz is well within reason.
The question is how good is the probability that such a stratospheric gold price could materialise.
Dollar Bubble. Oil and gold intersect at the dollar. Both are generally priced and traded internationally in U.S. dollars, simultaneously reflecting and reinforcing the dollar's current position as the world's principal reserve currency. Any serious threat to the dollar's hegemony -- described more accurately by General de Gaulle as "an exorbitant privilege" -- strikes at a crucial U.S. interest: the ability effectively to meet its international financial obligations by means of the printing press rather than with gold or net exports of real goods or services.
The dollar's position is particularly vulnerable today. Washington's long-continued "strong dollar" policy, backed by the official capping of gold prices, has left the greenback intrinsically overvalued. Technically, it appears to have topped out and started into a long, multiyear decline amidst a host of negative fundamental factors, including: a growing fiscal deficit made worse by costs for the war on terrorism, homeland security, and now the Iraq war; a trade deficit running at roughly 5% of gross national product, a level generally regarded by economists as unsupportable; and heavy reliance by U.S. stock and bond markets on foreign capital. In this environment, the United States, already portrayed in some quarters as a declining empire (see, e.g., Mark Tran, "Bush fiddles with economy while Baghdad burns," Guardian Unlimited (March 26, 2003)), cannot safely ignore challenges to the dollar that might have passed unnoticed in earlier years.
In November 2000, after threatening to withhold oil from the market, Iraq obtained U.N. approval to require payment for oil exports in euros rather than dollars -- the currency of an "enemy state." See "U.N.to let Iraq sell oil for euros, not dollars," CNN.com (October 30, 2000). In "The Federal Reserve's Worst Nightmare," Freemarket Gold & Money Report (Number 272, October 16, 2000), James Turk described this development as "pointing a dagger at the heart of the Dollar bubble," particularly should other oil-producing countries move in the same direction. Although regime change may bring Iraq back into the dollar camp, reaction to the Iraq war threatens the opposite result in other Muslim nations. See William Pesek Jr., "Indonesia May Dump Dollar; Rest of Asia Too?," Bloomberg.com (April 17, 2003); Robert Block, "Some Muslims Advocate Dumping the Dollar for the Euro," The Wall Street Journal (April 15, 2003), p. C1; Kazi Mahmood, "Economic Shift Could Hurt U.S.-British Interests In Asia," IslamOnline.net (March 30, 2003).
Until the collapse of the Ottoman empire in 1924, the gold dinar (4.22 grams equal to 0.135 ounce pure gold) was the currency of the Islamic world. With bitter memories of the 1997 Asian financial crisis, Malaysia is planning to use the gold dinar (weight as yet unspecified) to settle trade balances with certain Muslim nations starting later this year, most likely with Iran. See Sonia Kolesnikovar, "Gold dinar could soon be reality," UPI (November 15, 2002); Khaled Hanafi, "Islamic Gold Dinar Will Minimize Dependency on U.S. Dollar," IslamOnline.net (January 8, 2003); and articles collected on the gold dinar at www.321gold.com. On the retail side, in November 2001 the Islamic Mint (www.islamicmint.com) launched an Islamic gold dinar coin (4.25 grams of 22 carat gold), which also circulates in electronic form (www.e-dinar.com). Use of the gold dinar, it is hoped, will encourage growth of Islamic financial systems and promote the unity of the ummah (i.e., Islamic community).
Although it's fashionable among US and continental establishment intelligentsia and their web sites to dismiss this event, they are sadly mistaken.The economic weapons of Islam are serious and potent in the environment of the weak US dollar and debtor position of the US and US consumers.
This morning the US dollar traded under .9920. This is the critical level upon which a close in the US trading session below.9920 would technically breach the demarcation line between dollar doom and a potential technical rally.
Rest assured that the Foreign Exchange Stablilization fund will do everything in its power to hold up our Humpty Dumpty Dollar unless it collapses and breaks into a heap and the King cannot put it together again.
I have been invited to speak at the inauguration of the Malaysian Gold Dinar in Kuala Lumpur later this year. But I expect I will require certain clearances prior to my departure if I would like to return to Connecticut rather than a chicken coop in Cuba.
There is no question that this event is in fact gold's remonetization. It is the first step towards a unified Islamic currency. The Malaysian Gold Dinar is a key part of the emergence of another potential financial hegemony, the quietly rising Sino/Islamic economic union. This is an economic union in which Mr. Putin has applied for membership.
I expect China to issue a gold settlement system in the form of a Gold Yuan for utilization among its Asian trading partners. The Pakistani felon (see yesterday's market comments) may well be right.
The dollar could be dead and policy makers here may not have realized it.
Here's a recent story that appeared in the Malaysian Times about the gold dinar and its upcoming introduction:
ISLAMIC "GOLD" DINAR WILL MINIMIZE DEPENDENCY ON US DOLLAR
Malaysian Times - Business section April 22, 2003
Malaysia will start using the Islamic gold dinar starting mid 2003 in its foreign trade section with some countries replacing the U.S. dollar in a first step move toward unifying the currency used in commercial dealings between Islamic countries.
The success of this idea, according to several western newspapers, may lead to minimizing the U.S. dollar hegemony as an intermediate tool in commercial dealings in the world.
The idea was adopted by Malaysian Prime Minister Mahathir Mohamad who conducted bilateral talks during the year 2002 with several Islamic countries, including Bahrain, Libya, Morocco and Iran, to convince them of using the Islamic dinar as a way of payment in their commercial dealings with Malaysia.
This move is considered from one side a way to recall a currency related to the history of Muslims and their monetary heritage since the time of Prophet Muhammad (peace be upon him), and from the other side, the ability to find the Islamic alternative to the dollar at a time the calls to boycott all what is labelled as American starting from goods to currency, are intensified.
The idea of the Islamic gold dinar belongs to Professor Omar Ibrahim Fadillo, founder of the Morabeteen International Organization founded in 1983 in South Africa where it is widely known as well as in Europe.
The organization believes that the unity of the Islamic world can not be achieved except through the unification on the economic level. It also calls for the establishment of a united Islamic market using one currency which is the gold Islamic dinar used by the Morabeteen members, hoping it will replace the U.S. dollar.
"The idea of the Islamic gold dinar aims at minimizing the hegemony of the U.S. dollar and to use the gold once again as an international currency because the value of the paper currencies is in continuous fluctuation unlike the stable gold currency which preserve its value through the value
of the metal itself.
The system is built on the idea that the Islamic governments keep the gold in a central bank and use it in settling their commercial dealings instead of depending on foreign fund markets and foreign financial corporations. The first Islamic gold dinar, equivalent to 4.25 grams of 22-karat gold, was issued in 1992 on a very limited scale between the member of the Morabeteen.
Several countries around the world are currently dealing directly with 100,000 Islamic gold dinars and 250,000 silver dirhams issued by the company, hoping that one day it will replace the U.S. dollar in the dealings of the 1.3 billion citizens of the Islamic countries.
"Consequently, the gold dinar will be the ideal currency to facilitate and increase international trade and minimizing speculation in paper currency that led to the Asian currency crisis in 1997," Dr. Muhammad Sheriff Bashir said.
The existence of a fund unity between the countries of the Muslim world will increase the amount of trade between them and will help in increasing the economic development if the conditions for the success of the gold dinar were provided, he added.
Gold bears have undergone a Damascene conversion to raging bulls in a few short days as the metal burst through three successive resistance levels at the weekend. Less than ebullient about the metal's short term prospects only a week ago, after more than a month of somnambulant trading, Johannesburg and London-based bullion bankers are now touting a gold price of $340/oz within a fortnight and $350/oz inside of a month.
Gold Is A Financial Asset
The key driver for gold is its return as a financial hard asset. Gold is often held in anticipation of an investment or speculative return. Having lost confidence in fiat money and financial assets, investors have sought gold as a hedge against monetary depreciation. Negative returns, ongoing accounting scandals (HealthSouth), and record levels of debt continue to depress stock prices. The three-year demise of the stock market and other asset classes has caused a reluctance to remain in financial assets. Hence the return to hard assets and the emergence of talk of a return to some sort of a gold standard in order to regain price and asset stability. Even Fed Chairman, Alan Greenspan hinted of a return to the gold standard. In a recent speech to the Economic Club of New York, Greenspan said, “Although the gold standard could hardly be portrayed as having produced a period of price tranquility, it was the case that the price level in 1929 was not much different, on net, from what it had been in 1800. But in the two decades following the abandonment of the gold standard in 1933, the consumer price index in the United States nearly doubled. And, in the four decades after those prices quintupled. Monetary policy unleashed from constraints of domestic gold convertibility had allowed a persistent over-issuance of money.”
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Gold’s Bull Market Is Intact
We remain bullish on gold and expect a near term consolidation between $320 and $340 an ounce, the breakout level before gold’s run to $390. This correction is normal and needed. After reaching our interim target at $375 an ounce in February, we continue to believe gold will hit $510 an ounce this year. Indeed, the war and its costs ensures that the target will be exceeded. The bull market was intact with or without Victory in Baghdad. It ain’t over, till it’s over.
The US is planning a long-term military presence in Iraq, in a move which will dramatically extend American power in the region and spread dismay and fear among its opponents across the Arab world. According to reports, the Pentagon intends to retain four military bases in Iraq after the invasion force withdraws.
THE Pentagon has produced detailed plans to bomb North Korea's nuclear plant at Yongbyon if the communist rogue state goes ahead with reprocessing of spent nuclear fuel rods that would yield it enough plutonium for half a dozen nuclear weapons within six months.
Periodic Ponzi Update PPU -- $hifty, 22:59:09 04/20/03 Sun
Gold’s cachet as a viable part of an investment portfolio was improving amid the combined affects of deregulation and changes in investment fashions, as well as crucial alterations in the metal’s negative historical legacy, according to Graham Birch, chief investment officer of Merrill Lynch Investment Managers.
Birch, speaking at the European Gold Forum in Switzerland this week, said the fact that gold had not been part of index benchmarks had given it a negative investment image in the past. However, this was becoming less important particularly as diversification among fund and money managers was “back in fashion”. As a result, traditional non-holders of gold were now including it in their investment decisions as an alternative investment.
Gold Bullion Ltd [ASX:GOLD], the Australian-listed gold backed equity, needs to become the jacuzzi of its sector; brand recognition which in a word crystallises physical gold’s universal investment appeal. At the moment the product, in which the World Gold Council is a joint backer, is trading relatively modest volumes on the Australian Stock Exchange (ASX) where it listed three weeks ago. Gold Bullion’s chairman, Graham Tuckwell, concedes the prelisting hype has died down, but it’s early days yet.
Essentially, Gold Bullion offers investors opportunity to buy physical gold in which a single “GOLD” share is equal to a tenth of an ounce of gold. Retail investors can buy the share through the internet, larger investors can buy the gold and convert it into Gold Bullion shares.
Meetings with major institutions are planned including generalist funds who have no track-record in gold investment. Tuckwell is recommending that investors need to open up between three to seven percent of their asset allocation to physical gold depending on market outlook. This represents potentially massive investment in the physical gold market, but Tuckwell believes that on the evidence over over-the-counter trade (OTC), the market can easily provide the liquidity.
“The OTC market in gold is more liquid that any stock on the New York Stock Exchange - absolutely massive liquidity,” he says. According to a Gold Bullion publication, the London gold market normally clears at least 16 million ounces, roughly $5.5 billion, daily. Gold Bullion estimates that this amount could be three times that amount including positions that bullion traders net-off prior to clearing.
But another aspect of the message that needs to be rammed home to potential new gold investors, as well as established participants in the gold market itself, is the convenience and security of Gold Bullion’s offering.
The world’s gold producers are expected to continue to reduce their hedge books in 2003 contributing as much as 325 tonnes to physical demand, Gold Fields Mineral Services (GFMS), the UK metals consultancy said. Releasing the publication of its Gold Survey 2003, GFMS said there was little incentive to continue hedging this year owing to the low contango. “De-hedging is expected to continue in the current year, perhaps contributing as much as 325 tonnes to physical demand,” GFMS said.
“The outcome is that Iraq is a sideshow (for the gold price) and the metal will return to its upward trend. The real issue is that gold is on an upward trend. Why?” Murenbeeld asks
The premium mobile in the gold market is US government efforts at reflation, aggressive attempts at stimulating the currency and demand in the US economy. As a result the US administration will continue to print more money and lower interest rates. Conversely, tight money supply and a strong dollar means you can “kiss gold goodbye”, Murenbeeld says. But in reflation, the US Fed will seek to cut the large trade surpluses with China ($100 billion), Japan ($70 billion) and Europe ($80 billion) in order to boost domestic demand away from foreign goods and services.
“A declining US dollar, rising inflation, low real interest rates, easy monetary policies (reflation), and strong economic growth are “gold positive” conditions; they are favourable for gold demand,” Murenbeeld says. “To put it differently, conditions that favour financial assets are not generally conditions that favour gold, while conditions that do not favour financial assets are conditions often quite favourable for gold,” he says.
PAUL WALKER: You know, I really do think that we've called the price pretty well. I mean, if you take us back to when we did the management buyout from Gold Fields of South Africa - I think some of your listeners may not realise that we are a completely wholly independent research company. And, since the buyout five years ago, we've made some predictions and some calls on the gold price that certainly haven't been popular within the producer community, and we were right about those. In the main we were right. I think the one time that we got things wrong was September 1999, when we had the central bank gold agreement. If anybody had predicted that beforehand, you could have traded it and retired on the back of it. We didn't anticipate something quite as profound as that, but over and above that one occasion I think in the main we've got it right. But I suspect, looking at your face, you're going to tell me that in February I said something different.
MONEYWEB: No, no. You were pretty good in February. In fact, you said the reason for the spike in the gold price - well, the spike in the gold price came on thin volumes. You said it was unlikely to be sustainable, but you were expecting in the second half of this year the gold price would do well, and you were looking around $380 to $390. So, no, you're not wrong, certainly not yet.
Are you still sticking to that view?
PAUL WALKER: I think we're still fairly positive on gold. You know, I outlined that today in the presentation that I gave. We feel that the macroeconomic backdrop as much as anything is very supportive of gold. There is rising interest from the investor community. I think there's just a perception out there that there really isn't a hell of a lot else to do with your cash these days. Now, you may take that as a sort of negative comment, that gold only performs well in times of adversity - but, after all, if you speak to most people about the role that gold should play in a portfolio, it is to insulate you to some extent from the vagaries of other markets and what's happening both geopolitically and in the broader macroeconomy. Our view is that we will see gold regain some of its losses that we've seen over the last couple of weeks, and certainly push above 350 in the second half of this year.
MONEYWEB: What makes you that confident? Because, when I go through your report and what you've compiled today, you do warn that demand for jewellery, gold jewellery, has fallen quite significantly - and that is by far the biggest offtake of gold.
PAUL WALKER: Well, I think you've got to look at the offsets here.
Somebody asked me a similar question earlier on today, and I said you have to look at the supply-demand balance in its entirety. And the one area of the supply and demand balance that has been quite phenomenally different to anything we've seen in the last 10 or 15 years has been the producer buy-back, delivery into their positions. If you like, the rundown of the outstanding producer hedge book.
~~~
MONEYWEB: But over the past 10 years, as you say, the gold price has been sliding, so it's almost been a self-fulfilling prophecy. If you see that the value of your product is dropping, lock in today and you'll be better off in a year's time, and when it comes to renewing that contract, you would renew it and be better again. But the problem is that you're pushing the price of your product down continuously.
PAUL WALKER: I think that's probably true. What you've seen changing over the last year, well, it's almost two years now, has been a belief that gold is not looking into the abyss any more. And in a sense the trigger point for that was the central bank agreement. It really did change people's views of what the downside for gold was and the producer community, the investors and their shareholders have said, hang on a second, we're not looking into the abyss, we're not looking at $200 gold. In fact, this agreement, the amount of gold, the 400 tons under the central bank of gold agreement can easily be absorbed by the gold market. It's fine at price levels above $300. It's sustainable.
We've been struggling to find that equilibrium over the last two or three years and I think the $300 level is a sustainable equilibrium price. And we believe that later on this year we're going to see $350-plus prices.
MONEYWEB: Paul, that agreement by the central banks that they would only sell 400 tons of gold a year - how long does that continue for?
PAUL WALKER: Well it's about to expire and it's interesting that the Germans, Welteke, came out with a comment the other day, indicating that there isn't quite the certainty that the agreement is going to be renewed. Now my initial reaction was to say: oh, my goodness, this means the Germans are going to sell a lot more. And after a moment's reflection and speaking to one of my colleagues, he said, hang on a second, this probably means that, in the context of the geopolitical situation, issues of the dollar's strength, where do you put your assets, maybe the Germans are having second thoughts about this and in fact they are not going to sell. And certainly the Germans are going to be the leaders in this process. The GMFS house view a year ago was that it was almost certain that the Germans would substitute for the Swiss in terms of the bulk of the sales under this agreement. That looks a little less certain now, which, all things remaining equal, is actually very good for gold.
MONEYWEB: If there were an announcement from the Germans or from the central bank that the reason why they don't want to renew the Washington Accord, I think it's called, is because they don't want to sell the 400 tons of gold into the future. First of all, where would you put that as a possibility of happening on a scale of one to 10 - and, secondly, if that were to occur, how might that influence the gold price?
PAUL WALKER: Well, I think it's increasingly likely. Putting a probability on it is probably hostage to fortune, but I think it's increasingly likely that we're not going to quite see the outcome that I would have anticipated a year ago. And, given the direction in which that is going to move, I think it's going to be good for gold. If you think about it, we're talking about 400 tons from the central bank gold agreement or the Washington agreement players.
Add in a bit of central bank selling from other sources, the bulk of the metal coming onto the market has been under that agreement. If we see a significant change in that agreement it's going to be extremely interesting for gold, and I don't think at this stage it looks like it's going to be "oh, we're going to sell six or 700 tons - this is the 400". It's going to be: "Well, maybe we don't need this agreement at all, and we can allow the remaining European banks that want to sell, one or two of those who will undoubtedly continue to sell." But the big hitters, the French, the Italians and the Germans, are going to stay out. That certainly is a possibility at this stage.
~~~~
PAUL WALKER: Sure. You ask about the geopolitical issues. If you take the GFMS view of where the gold price is going, our view is the primary driver of the gold price in the next six to 12 months is going to be the economy - stupid - it's not going to be the geopolitical. That will add froth one way or the other. It can be the cream on top or it can detract, as we've seen over the last few weeks. The real driver is going to be the economy and I don't think one should lose sight of just how important this is to the investor community as a whole - that they're lacking alternatives. These new products that are being discussed - Australia, they've launched this product. I think to date it hasn't performed spectacularly, but there is this growing pool of liquidity, if you like, that's developing there. I think the really interesting thing is what's going to happen in the North American context when this product that everybody knows about but nobody's talking about finally comes to market.
I think that's when we start to see something quite interesting in the context of gold and investor demand for gold. And ultimately our view is premised on the fact that the investor is going to be the driver of this market over the next six to 12 months.
MONEYWEB: So we can look forward to a better gold price in the second half of this year and thereafter?
PAUL WALKER: Well, I think we're going to see the gold price sustaining at levels that we've seen. The production profile is not going to be a big factor. The investor's view of this metal and the alternatives out there are what's going to drive it. You tell me what your view of the FTSE and the Dow Jones is going to be 12, 18 months out, I can probably give you a view on gold.
And I think there's still a lot of downside - that's our house view.
MONEYWEB: In stock markets?
PAUL WALKER: In stock markets. And that's going to be good for gold over the foreseeable future.
Pertamina, Indonesia's state oil company, dropped a bombshell recently. It's considering dropping the U.S. dollar for the euro in its oil and gas trades.
With war unfolding in Iraq and a mysterious pneumonia spreading around Asia, few noticed. News that Indonesian government officials favor the euro also fell through the cracks. Yet it could have major implications for the world's biggest economy.
Other Asian countries may not be far behind any move in Indonesia to dump the dollar. The reasons for this are economic and political, and they could trigger a realignment that undermines U.S. bond and stock markets over time.
Barrick the MOTHER of all GOLD + Banks & stocks - Fraud COVERUPS -- Jorge Lopehandia, 15:40:18 04/17/03 Thu
THE LARGEST THEFT BY DECEPTION TRAIL OF CRIMES IN THE WORLD = BARRICK et al helped by Homestake - Dayton - Pacific Rim Resources - Medinah Minerals - Penn Gold Resources - Moreno Ventures TSX, - Medinah Gold Last Frontier Oil Company - NIT Northgold Resources International Trust +++ engaged in CONCERTED CRIMES to steal "other peoples resources"...
From 1995 we pioneered NON CHEMICAL Mining as a responsible solution to a poluted world, we found the answers and promoted that, we were ambushed by Corporate greed and massive orchestrated corporate crimes.
The corporate criminals in 90% of the cases switched their corporate names "contemptously for insider gain only" they all "flipped or swallowed eachother on time", to evade legal responsibilties... later!
After several years of scientific research and applied sciences of Geology - Metallurgy, we were successful and determining that MOST mining and recovery of minerals from a rock in NATURE, can be done WITHOUT ASSISTANCE or NEED of "$ savers - $ makers" (if you own the Chems) CHEMICAL POLUTANTS. Meaning, we know how to recover all metals from a rock with water.
The TRUTH is CLEAR... NON chemical polution is BETTER and CHEAPER (no expensive Industrial security or accidents of spills) Surely, a more responsible mining with full respect of our Mother Earth's water tables and respiratory track systems of inhabitants nearby.
Our idea.....however, DID NOT PLEASE AT ALL....the BIG Mining Boys... like Barrick... 1996 - 2003, for ... INDULGENT Corporate CRIMINALS, just.... think & act DIFFERENTLY than us!
We (Family & Associates) successfully worked with a TEAM of scientists from Canada USA - Chile and Australia to bring a CLEANER and WORKABLE alternative to POLUTANT MINING and we SUCCEEDED AT IT... BY 1996..... OR SO WE THOUGHT.......
We successfully permitted Gravity Technology Systems in 1998 to operate in Chile via the National and Regional Commission for the Environment and the Ministry of Mines with all Regional Ministries on Board (Health - Work - Planning - Geaology & Mines - Tourism +++).
By 1997 we were 100% READY to do MINING without Chemicals (fresh or sea water only) WE HAD PROVEN a viable AND SUSTAINABLE alternative to mining & environmental protection, a positive symbiosis of interests to protect the Planet and allow long term jobs & mining to co-exist.
I personally confided my technology discoveries to Barrick as early as 1996 when I went to "save the day for Barrick" for their lost Pascua mine claims. Barrick paid me with 7 years of CRIMES.
We (a TOP witness and me) met with John Lill (Barrick Chile) for Barrick had just LOST their largets Gold mine (to me) (Pascua Mine area claims) SOLELY due to Barrick's own Mining Department Fraud (imperfected LAC Minerals's 1994 claims purchased by Barrick) in accordance to Chilean Mining Code - declaring them a DE FACTO Null & Void claims. (hence our 1996 valid claims EXISTED - were plagiarized by Barrick - who also STOLE our claims - the richest Gold and Silver mine in the History of the world, measured by conventional Engineering standards).
Please read our story of "ABUSED little miners" share it and help us as soon as possible to cope.
First..however.... a "telling & compelling preamble"... as to how Barrick "has operated in USA"... to "attain Gold portfolio" with a sense of "urgency to commit FRAUD".
Similarly if not "identically".... in "habitual FRAUD behaviour... commited crimes to us in Chile"....
Until 1985, Barrick was a small gold producer with profits of $7 million. That year, Barrick "purchased" the Goldstrike Mine in northern Nevada; the company will pay the U.S. government $5,190 for 1,038 acres of land containing $8 billion worth of gold. By 1993 Barrick's profits were $175 million, and the Goldstrike was being billed as North America's richest gold mine (see "The Great Gold Heist" by Thomas J. Hilliard, in Clementine: the Journal of Responsible Mineral Development, Spring/Summer 1993, p.9-10). The estimates as to the worth of Goldstrike vary; by May 1994, when Interior Secretary Bruce Babbitt signed Barrick's mineral patents, it was estimated that Barrick was getting $10 billion worth of gold for less than $10,000. Babbitt was quoted as saying that "it's the biggest gold heist since the days of Butch Cassidy. But these folks stole it fair and square. The West has long been settled but the giveaway continues unabated." The Goldstrike operation is dewatering aquifers along the Humboldt River, having lowered the water table under the mine by some 1,200 feet. The groundwater deficit will be filled by water from the Humboldt, drawing as much as two-thirds of its flow (High Country News, May 30, 1994, p. 5; and June 13, 1994, p. 6, citing University of Nevada hydologist Tom Myers' The Hydrologic Effects of Open Pit Gold MIning in the Humboldt River Drainage, published by the Sierra Club, PO Box 8096, Reno NV 89507-8096).
The Mineral Policy Center, publisher of Clementine, has an Environmental Report Card on American Barrick; write to the Center, Room 550, 1325 Massachusetts Ave. NW, Washington DC 20005.
********* Barrick Gold Corporation et al's FRAUD to Jorge Lopehandia + Family + Associates 1996-2003 **********
Pascua Mine in Chile a US$60 cost per ounce with 35 million Free Gold ounces - closed from PRODUCTION arbitrarely by Barrick 1997-2003 due to .LOW GOLD PRICES !!!! - Now illegally & falsely ADVERTISED to be mined 2008
*********************************************************************************
CIBC Vancouver and Toronto Main Branches - CIBC Oppenheimer - UBS WARBURG - CityBANK - Banamex New York - HSBC North Vancouver's Egdmont Village Branch the Luksic group Bank are all in crimes against my persona in defense of Barrick... as are many members of the world Gold Council that took our properties without paying. Our children are innocent of their "corporate strategies of greed and bulldozing".
Banque Internationale du Luxembourg + United Mizrahi Bank + a series of other banks in Canada - USA - Mexico Europe - Israel and Chile... have been used in systematic and endemic fraud to leave me and my family consumed by DEATH
THREATS + our canadian children in inanition and deprived of food + clothing + proper education and shelter... in North Vancouver...BC... this is a shame inflicted by corporate fraudulent design and ought to stop.
Please help urgently.
US$557 Million swindled from me at CIBC Main Branch Vancouver to DEFEND Leslie Phillip Price indicted FELON herein named and 100% associate of Barrick that uses CIBC Mellon as "transfer Agent".
US$400 x 3 stolen by USI North East + Lloyd's of London via Damascus Bank and Mizrahi bank from me of a Legal JV 75% Canadian component, where the OFFENDING USA Maryland based 25% cahooted with Barrick et al + the Gobernment of China, to steal from me US$50 Billion in Gems and minerals kept in my family since the 1800's in Chile that chinese are drilling today for minerals to fabricate weapons of mass destruction.
Charles Giuliani used his name to declare US$50 Million cash deposit at BANAMEX and all my documents FRAUDULENT (abusing his uncle's Rudolph's name against my persona to protect Barrick and AVOID - CIBC Openheimer - from delivering to me US$750,000 as advance to the US$50 Million invested by me, to place same in DTC. As soon as DTC got wind of my money IT WAS ZAPPED from my jurisdiction.
With it, 4 Bankers in Guadalajara and Three top Legal department bankers in Mexico City were "retired with cheques of US$500,000 and less" that is 7+ years career bankers VANISHED from BANAMEX DF and Guadalajara, to impose the name GIULIANI versus mine against Barrick.
The RCMP has mi file for US$60 Billion mining and cash fraud and we are starving today - honest to GOD.
No food in our fridge and our todler's shoes are too tight to go to kinder, a denied teenager years without Family allowance or bank crdit BY SINISTER ORGANIZED DESIGN. Please help immediately. Thanks.
My credit was intentionally marred 1997 by Medinah Minerals's CEO Les Price, who robbed my financials to avoid me from being "bankable", thus to help ushering in the following financials crimes listed hereunder.
Our accounts receivable in short order are greatly significant.
Please assist us now, for we are Gold solid.
Respectfully I herein submit my resons to deserve your help.
Our names, reputation, creditworthiness, bankability, ability to earn, ability to conduct fair business via banks, hability to sustain my family or essentials for years, it has all has been HALTED and restricted from my persona, with petty and GRAND FRAUD by Barrick's "associates" and with their "connections", I apeared to have been BLACK LISTED.
Why? because we owned the richest minerals first and entrusted our wealth to "PHONEY" pseudo businessmen?
Take a second look at the facts.., for we need to clear our names and reputation - this is a criminal CONCERTED EFFORT to depersonalize an entire generation of my 14 brothers and sisters - over 70 Nephews and nieces my own three children and wife and the 1000's of workers I directly represent. This is AN OUTRAGE!
Not even PETER MUNK's or ANY of the THIEVES DOGS receive WORSE and more INHUMANE TREATMENT than my family for two generations already at the hands of ORGANIZED CORPORATE CRIME.
So much for DEMOCRACY and "FREE ENTERPRISING in AMERICA" our CONTINENTAL SAFETY has been weakened.
No wonder the "hurt interests are MAD" for now, I am the target of death threats and live in fear of my life FOR REAL like the person that disclosed ENRON's financial FRAUD. ENRON via Trazechann are ONE and thesame with Barrick et al.
INTRODUCTION TO a MINUTE part of THE ASSETS AND PRE-DUE DILIGENCE FACTS
For anyone who agrees to assist, these are the basic facts
NO HELP IS TOO BIG - NO HELP IS TOO SMALL
Legal defense - Big or Small Western Union to North Vancouver - $ help to Law Firm
ALL KINDS OF HELP IS VERY WELCOME INDEED
April 17 2003
PLEASE DO NOT REPLY TO goldinchile@shaw.ca thanks.
The honourable Mr. Donald W. Doyle Jr. Principal of www.blanchardonline.com , examined the merits of my case.
My name was included in the ammended Law suit against my counterpart in USA at www.savegold.com paragraph 60.
To avoid conflict of interests with Blanchard, I (we) require an independent financial source to sue Barrick, parallel in USA. Canada, UK, Switzerland or simply, to complete our Chile case against Barrick, successful since commenced March 04, 2001 the fourth anniversary of Pascua's contractual theft vy John W. Lill, envoy to Chile of Peter Munk and Randall Oliphant (Ex CFO at the time of the crime - Fired CEO recently by Barrick to COVERUP his Legal trips to Chile.)
So much for Barrick's El Indio promise of Munk, read all about Pascua FRAUD hereunder... never opened and all cash intended and raised institutionally for Chile was VANISHED and used to "replace the hedged / stolen Pascua mine"
Barrick promised multiple times to open Pascua and to expand El Indio belt... WHY did barrick Flee Chile and fired Randall Oliphant? after you finish reading my document and enclosures + links provided... you will know for sure... We own the Gold and have been prevented from touching our cash or wealth since 1997 to date.
YET, Barrick with all its might and all its FRAUD, can NOT legally open its "purportedly owned" Pascua Mine.
We know why, intimise yourselves. Relevant questions and timely assistance are welcome.
At the time of the crimes, Barrick DID NOT own our mine yet used its cash raised in the exchanges to buy:
Pierina - Sutton - Tanzania + Homestake + Alto Chicama.... Pascua WAS TO BE, (and ILLEGALLY is today - despite Judicial Judgements to the contrary in 2001 in Chile) "Barrick's largest book asset" by far... a money laundering saga of ABX.
Read the Barrick lies... Reported... Pascua in production by 2000... Pascua had 16 million proven ounces of Gold in 1996...
Where is 2000 - 2003 Gold production - cash or jobs? HEDGED and laundered cash results only, at Banks, shreholders and Investors detriment, ought to be stopped..
This info is "ABX's supressed along with many 4th quarters" at www.barrick.com learn re: FRAUD @ Pascua 1997-2003 and take special care to visit Financials second quarter page 6 re: US$13 Million paid for 10% of Pascua.... FRAUD release.
Both sides cases , Blanchard and ours, are of extreme merits and feed on each other.
Barrick without Pascua's Gold and Silver Resources, had to HEDGE and write DERIVATIVES papers as Blanchard claims and here is the proof, solely based of Barrick's own Reported Financials and the Reported Financials of its criminally caught and on record, "mining peers".
i.e. Leslie Phillip Price - acquired US$100,000 Million in 3 Mining contracts from me in 1996, prior to Pascua's THEFT by Barrick late 1996. Feb 1997 Barrick conducted Plagiarism of our 1996 claims (today impounded by the Judicial as Fully constituted Claims, namely Mensuras called "Tesoros" )Treasures 1997, over our Amarillos (for Gold = Yellow in Spanish) see images below the big yellow piece of Chile's Andes. That is our Pascua and Barrick's crime to Banks & society at large.
We are 99% complete in Chile, all criminal appeals lost by Barrick, all civil appeals lost by Barrick who has lost title of the world's largest mine under Injunction since June 06 200 and has failed to report it to the Financial Establishment.
To that effect, Barrick has tried in a futile manner, to spend Pascua's announced production budget, since 1996 when we claimed Pascua and the OVERPAID for Pierina to Arequipa Resources then PMU until swallowed by DAYTON.
DAYTON in an ASTONISHING Price like and Pascua like maneouvre, BOUGHT PMU from Pierina's - Barrick's allied owner...
and changed DAYTON's name to PMU to mascarade in Chile crimes that left my workers and represented's destitute 1997.
DAYTON "pretended new ownership of my Legally Represented / co-owned properties at Andacollo since 1995 when it hypothecated some of our titles to 5 Banks including Bayerish van Vereins bank and when it was owned by Brian Mac Clay." of course they get easy treatment in comparison to stealing 5 thousand jobs, 7 + Million ounces of Gold, selling illegally our Resource to "another Barrick Group annointed
Bill Myckattin "the Barrick annointed" played horrific games with Andacollo Gold in complicity with Leslie Price.
Price was caught in a very bad crime with a "bunch of associates that used and abused our names, reputation, properties, shares that were never honoured, cash and worse of it all, the system"....
USA's DOJ has it right, my evidence provided in the Sierra de La Plata theft, is as strong as Barrick's case is strong, 100% undeniable racketeered theft, identical to the planned Andacollo theft. Price has already being caught and with my Chile properties peddled intentionally illegally in the Internet, worldwide. Just like Barrick (to be caught in the rest of the world and DAYTON + Homestake + various other linked offenders).
Andacollo Gold and Churrumata Gold. contain in excess of 7 million ounces as Mining Districts, each. That is a whooping 14 Million ounces that by "hedging 5 million ounces only" we end up with US$1.5 Billion... how come then DAYTON buys PMU... DISSIPATES ANDACOLLO prolific Gold camp and shuts down since 1997 crime wave... to go mining a Gold VEIN under the Jungles of El Salvador as PMU.... a US$7 Million indebted company?????
That is just like Barrick and Medinah and is absolutely reprehensible at Law. It also constitutes Bank FRAUD, illecit association to commit grand theft, money laundering, breach of securities act, breach of trust, Tax evation, for starters.
Medinah in complicity with DAYTON stole several hundred mining claims from my own hands and Associates since 1996-2003, never paid for. Medinah and DAYTON, "conveniently - staged - premeditately closed down our Gold Mill at Churrumata and then bulldozed our facilities at pre-dawn to "usher in Pascua theft few weeks before, March 04, 1997".
Gold Prices went DOWN 1997 drasticly and Barrick "went hedging our Gold"... DAYTON... closed its own 180,000 ounces annually planned producing facilities, (appears to have hedged and papered) drilled reserves with positive production decision that were over 5 million ounces of Gold pre-DAYTON already, when drilled and inferred by Chevron's geologists, as contained Gold ounces 1994 or thereabouts, we have most of the Chevron Andacollo - Indio - Tambo - Laguna Reports.
Bill Myckattin of Gibraltar & then "found my introduced project as head of DAYTON" the same person who personally in various occassions spent time at "length" swallowing my referred mining discoveries and our Andacollo project info when he was at Gibraltar.
Bill Myckattin, the party that as head of DAYTON refused to use my evidence of theft against Medinah's Price, Price told me personally that he spoke with Myckatting almost daily. (Both companies were shorted by insiders - like PMU trading patterns - like Barrick's trading patterns)
In 2003 Myckattin as PMU owns DAYTON - disguised as PMU the very company that that was sold to him by Pierina's - Arequipa owner, who sold Pierina to Barrick. DAYTON in the flip however, made a HOUDINNI act with Andacollo's Gold for PMU is a US$7 Million company only. Something is utterly wrong with these corporations overindulgent management.
Neither Barrick, Medinah or Dayton have MINED in Chile, except for mining banks, and bilking and milking the public at large in a racket that left ENRON looking like kindergarden stuff. Where are Andacollo and Churrumata Gold?
Check hereunder for Barrick's Associate Leslie Price CEO of Medinah, accomplice of DAYTON and Barrick in 1997 in Chile at Pascua's and Andacollo's Gold theft.
http://www.usdoj.gov/usao/fls/FRAUDULENT%20SECURITIES%20SALES.html
Please visit www.dayton.com www.medinahminerals.com and www.pmu.com and welcome to internet corporate crime.
Re: why these miners have so suddenly fled all chilean Gold operations? All were linked directly to my persona 1996 to date.
DAYTON illegally "acquired dropped Lawsuits we had against DAYTON, fraudulently acquired without paying by Medinah" Myckattin knew it from me 1998 onwards and ducked to "play with Medinah instead".
DAYTON has forged a FLIP of Andacollo & Churrumata's Gold with PMU in the same OBJECTED at LAw by Chile manner; in which Anglo tried to acquire Disputada de Las Condes from EXXON abroad, evading taxes in Chile.
DAYTON in complicity with indicted Leslie Price of Medinah, ushered in the theft of Andacollo Gold IV Region + Churrumata Gold Projects IV Region purchased for US$75 Million from my Family and Associates by Price (it included by far, over 80% the size of DAYTON Miniing's holdings in the area.
Sierra de La Plata III region purchased by indicted Les Price via "Associates" for US$25 Million including Royalties was a "casualty" as well. Since 1997, Price has "managed over time to remain - connected via the back door to that project, 100% in crime".
Whereas Blanchard can sustain a long legal battle for their meritorious lawsuit, based solely in their financial ability and the truth, our lawsuit (most of it) has been already sustained and won in merits to date, despite the wanton intent of our counterparts to suffocate the criminal process against Barrick et al, from all sides, since 1997 to date
We desrve assistance from those who still uphold values for ethics and humaine treatment of our fellow citizens worldwide.
As a Canadian citizen under LAC vs Corona jurisprudence, all offenders are liable of taking properties that were ours first.
Henceforth, we require funding to complete final steps, for we are into positive sentensing stages now and we need help!.
Our soon to be recovered Asset (one of them), is known as the largest Gold (20+ Million ounces) and Silver (592 Million ounces - 4 times more than Warren Buffet has in the Bank) mine in the world - namely, Pascua Mine in Chile.
Please see all related images for size, location and reserves.
Herein included is a link to the images that will show you the resource.
We also have a second successfula case (our Legal counterpart in this second case affecting 100+ families and over 1000 people & Barrick, are one and the same) with Supreme Court favourable Judgement in our favour, subsequent Arbitration in our favour and US$1 Billion plus in mining assets - real state - gold - copper & silver mines to be recovered as well in the Supreme Court favourable (to us) decision. However, Barrick has stood in the way of the empobrished shooless and educationless children, since 1997 to date, in alliance with Alejandro Moreno Prohens - the same co-Author of Pascua mine's 1997 theft.
Please visit. www.barrick.com and check whatever is left of their intentionally - surgically removed 4th quarter financials. Barrick has had an ear full to that effect from as of late.
Barrick successfully GAGGED ME at LYCOS stocks messages Boards. Barrick went as far as to lie in Canadian Court to GAG ME December 2002 ILLEGALLY TELLING THE JUDGE that Barrick owned OUR Pascua mine - with LAC Minerals's (since 1997) 100% DEAD Titles.
(see LAC vs Corona Canadian Jurisprudence, that case was 10 times weaker than ours vs Barrick et al. We were born there and our names were in the valid titles of 1996, due for 100% restitution at Law.
Both cases are 100% right at Law in our side and are being FINANCIALLY SUFFOCATED by Barrick et al, we need money to complete sentensing (evidence provision a key) to hire experts to receive possession via granted injunction over US$100's millions in equipment at the already Injunctioned US$10Billion + mine, since 2001. (Barrick lies to the Exchanges)
BARRICK ET AL = 100% IN OBSTRUCTION OF JUSTICE AND PRESS GAG + SUPPRESSION MODE
Upon recovery within 90 days, we shall divide & disburse all settlement proceeds amongst the parties involved.
This second lawsuit assets, are immediately adjacent to Sumitomo's and phelp's Dodge's Candelaria Copper Gold mine in Chile, our assets are tied to a Barrick FED $$$$ process, so we DIVERT precious food funds, to EARN Justice. Barrick via Alejandro Moreno Prohens My legal counterpart 1995-2000 (removed after swindling from our state a US$5.5 Million Copper and Gold Mill outside Sumitomo's Candelaria.
While we follow the Law and rules to stop Barrick - Barrick et al - IGNORE THE LAW to be mild - and sell our assets at my back, the back of Chile's Supreme Court - the back of an Arbitration process -+++...
And here I am after 6 IMPLACABLY PERSECUTED YEARS.... prevented from moving under death threats - cornered by corporate and Bank's - "blacklisting"....thanks to Barrick's et al's "AGGRESSIVE GLOBAL GOLD POLICIES". What GOOD does it do to HORD our cash and PAPER the world with worthless paper NOT backed by our physical Gold? = DERIVATIVES + HEDGED Barrick's Gold 1996-2000 (until Pascua's production & equipment cash - bought the "replacement" mines)
Meantime, Barrick et al.... circumvent the Law and ethics, by buying press Releases to pretend ownership of our now, Judicially recovered - soon to be repossessed Pascua mine Gold and Silver assets.
For the exact location of our US$5.5 Million SWINDLED Mill & other properties kept or attained - Optioned - purchased illegally and with imaginary contratcts, from me & my repsented by Phelps Dodge - Sumitomo in the area, please visit:
www.phelpsdodge.com under mines, Candelaria mine and Alcaparrosa mine in Tierra Amarilla, Chile, also at www.sumitomomining.com - the rest of our portfolio is within areas held by www.codelco.cl (between El Salvador & El Hueso mines) near and around www.enami.cl III Regions operations. adjacent & near Placer's Cerro Casale & Maricunga Gold District's Operations in III Region Chile as seen at, www.placerdome.com
My case is the world's largest Asset ever recovered successfully via Courts in Chile or the world.
Please help me to save the economies and 1000's of lost jobs 1997 - 2003 and counting... in USA, Canada, UK, Chile and Gold, with timely pre-settlement Financing - Timely Legal Action Support - Media Releases - askingmembers of Government for FORENSIC AUDITS of Barrick Gold Corporation's "pretended ownership OF its largest gold and silver asset = US$10 Billion plus FRAUD to us only, let alone the Banks and PHONEY GOLD PAPERED SYSTEM (like JPM extending Barrick's GOLD default 15 years and SWALLOWING Barrick's - ENRON's recent GOLD defaults.
Thanks for your kindness to consider assisting us in this important endeavour.
My e-mails and telephones are tapped or hacked constantly TO PREVENT ME from communicating the truth.
Please insist via Operator assisted call to North Vancouver Canada if you can NOT contact me (fake busy signal) at :
.
01-Name: Jorge R. Lopehandia
02-Day_Phone: 604 985 4020
03-Evening_Phone: 986 7915
04-Email: goldinchile@yahoo.ca caughtabx@yahoo.ca jrlopehandia@yahoo. (if lucky, they appear to be TAMPERED)
05-Address: 487 Roslyn Boulevard
06-City: North Vancouver
07-Province: British Columbia
08-Country: Canada
09-Postal Code: V7G1P1
Please visit www.savegold.com re:
C U R R E N T . L I T I G A T I O N
Please Read the Second Supplemental Amended Complaint - Filed February 19, 2003
In order to save gold, a lawsuit was filed by Blanchard and Company, Inc., the largest retail dealer in physical gold in the United States, and by Blanchard clients who bought gold bullion. The suit asks the Federal Court to terminate the trading agreements between Barrick and J.P. Morgan Chase and other, as yet unnamed, bullion banks. Blanchard believes its clients suffered substantial losses as a result of Barrick's and J.P. Morgan Chase's unlawful price manipulation, anti-trust violations and unfair trade practices.
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I will provide further Legal info upon receipt of written Funding Commitment subject to, from a bonafide Funder/Lender/Investor/Helping Institution or Law Firm. If we match, we will succeed.
A somewhat relevantly linked chronology of crimes events, can be found herein:
We deserve a financial hand, to recover our assets, assisted by the Law Enforcement Agencies.
We have a 100% free additional large mining portfolio and all parties are prevented from work since 1997
.
Respectfully.
Jorge Lopehandia
HEREUNDER IS A VERY RECENT AND CURRENTLY ACCURATE - LETTER OF LEGAL OPINION RE PASCUA MINE
MARCOLETA & ASOCS.- ABOGADOS y CONSULTORES"
San Antonio 378 Of. 502
Fono: +56.2.6397475 - +56.2.4410862 fax: +56.2.6321521
SANTIAGO DE CHILE - CHILE
Santiago, Enero 30, 2003
To: Blandchard and Company.
Attn: Donald W. Doyle Jr., CEO
William Ryan, Attorney, Partner of Blanchard.
Re: "Pascua" mining project in Chile, Legal Letter of Opinion.
Cc: Jorge R. Lopehandia, Co-owner of the R. Villar G. claims trial.
Rodolfo Villar García / "Marcoleta & Asocs." Arch.
ONLY FOR YOUR PRIVATE BUSE. EXTREMELY CONFIDENTIAL
WITHOUT PREJUDICE, DISEMINATION PROHIBITED.
Dear Gentlemen:
As per instructions of Mr. Jorge Lopehandia and R. Villar García, we are pleased to confirm as follows:
1).- In accordance to Chilean Laws and minning codes, Barrick Gold Corporation since 1997 has no ownership, in any of the mining titles affecting the ore body or area of interest, of the "Pascua Lama" mining project in Chile.-
2).- Such fact, was determined - in principle - by the Chilean 14th Civil Court in Santiago, who dictated a Medida Prejudicial Precautoria, embargo preventivo (injunction) under cause Rol C-1912-2001, affecting the titles illegally held in the area, by an employee of Barrick Gold Corporation's subsidiary in Chile, Minera Nevada S.A., Mr. Hector Unda Llanos.-
3).- The Courts have found Minera Nevada S.A. (Barrick) to have acted in a premeditated manner, when illegally contracting in an onerous manner, 3400 hectares of rich Gold and Silver mineralization, for Ch$10,000 or US$25 in march 04, 1997. Nevada ( Barrick ) has lost all its claims/appeals to date in this matter.-
4).- To complete the two cases has been a hard battle, as Nevada-Barrick has a lot more money than my
Gold -- Sharefin, 20:15:46 04/21/03 Mon 
