Howe/Bolser Report Stuns Gold Investment World
by Bill Murphy, Chairman, Gold Anti-Trust Action Committee, Inc. (GATA). December 5, 2002
This morning I received a phone call from a London-based gold producer CEO. Few come more highly regarded than this gold pro. I had not spoken to him for many months, so the call was a pleasant surprise.
He told me he had read the new report by GATA's Reg Howe and Mike Bolser ("Gold Derivatives: Moving toward Checkmate") and remarked that it was "stunning." He said he was sending it all over London -- to major investors, the press, gold community, et al. I could almost see the big smile on his face. He went on to say that he had just returned from Zurich and that GATA was the talk of the gold world in Switzerland. His exact words: "That is all anyone wanted to talk about."
After falling off my chair and picking myself up, I got this email:
"I just got off the phone with my commodities broker. He knew a whole bunch about GATA and Le Metropole Cafe. He was very upbeat regarding the news about the Bank for International Settlements as reported by Reg, high on PMs, and down on JPM. He seemed to be with the program -- ours that is. He claimed to have a friend at The Wall Street Journal who was stunned by Reg's info. His friend at the Journal claimed that you are soon to get some ink/interview in the WSJ. Any truth?"
Wouldn't that be nice! No phone calls from the WSJ yet, but it should not be too long. The work of Reg and Mike is THAT GOOD and cannot be denied. It proves that GATA has been right all along. Can you picture that Gold Cartel bugler getting ready to sound retreat?
What is so important is that the investment world now has proof of the size of the gold loans and swaps, the MASSIVE short gold position of the bullion banks. The banks cannot get out of that position. As we have stated for years, the banks are trapped.
One does not need be an Einstein to understand the implications of the gargantuan short position. A monster squeeze is coming. Those who are long gold and the gold shares will make fortunes. Who would not want in NOW?
Besides, what is the risk here? Maybe $15 on the downside. The upside is $500, $1,000, or even $1,500. Is that a trade to pass up? Once investors around the world realize what has transpired in the gold market and understand the predicament of the Gold Cartel, those numbers won't seem goofy at all. It will take a giant move in the gold price to clear the market.
This is key and worth repeating:
It is one thing for me to throw around talk like that. It is quite another for big-league investors to study the work of Reg Howe and Mike Bolser. They cannot help but want to be long gold and the shares after doing so. The Howe-Bolser report has been out only ONE DAY. Because of its significance to the investment world, it is spreading all over the place. There will be a myriad of investor committee meetings regarding gold and this report in the weeks to come. It is hard for me to imagine that most investor committees will decide against moving into gold.
Do I sound excited? Yes, indeedie. We are almost there.
The Gold Cartel can huff and puff all they want to. We got them.
If you have not read the Howe/Bolser masterpiece, "Gold Derivatives: Moving Toward Checkmate," you can find it at Golden Sextant.
Be sure to spread the word to the financial press and to all investors.
© 2002 Bill Murphy
Bill Murphy | Chairmen & Co-founder, GATA