Power to the POG
(And How to Send a Message to Goldfinger)
17 February 2003 * Richard Lancaster
Hands up everyone who believes the Price of Gold (POG) is being massively manipulated!?
1, 2, 3….…..OK, that's quite a few of us. So, maybe we can make a difference in this battle; maybe collectively our actions could cause the manipulators (for our purposes we'll call the power that is behind this manipulation Goldfinger) to understand that "we the people" have our own power? Below are listed my top 5 reasons the POG is being manipulated - followed by a simple idea of what we can do about it:
1. DUMPING: Central banks, like the Bank of England, continue to sell their gold reserves at a loss to their nations' net worth. Some of the central banks of Western powers are almost out of gold completely, such as Portugal, Canada and Australia. The global demand for gold annually is approximately 4,000 tons and new supply is only 2,500 - the central bank gold makes up the difference - but appears to be only a temporary fix.
2. HEDGING: The major producers are hedged at an incredible level, to the extent that Barrick alone would stand to make around $2 Billion if the POG were to go to "Prechter's Bottom" of $200. (See the Blanchard law suit against Barrick and JP Morgan Chase).
3. SHORTING: A record number of short positions have been taken out on the unhedged gold producers since last summer, which is spooking the marketplace and really making new investors worry about what it all means.
4. CAPPING: The London gold market seems to consistently drive the POG higher. As you know London is 5 hours ahead of New York, so the stage is set in the London market for the New York market to react to. Analysis shows that London, presumably adhering to free market practices, bids the POG up - then the New York market opens and the POG is bid right back down. This is becoming so predictable that there is now analysis available on it.
5. CRUSHING: On February 5, 2003 the NYMEX announced that 'Gold futures margins will be increased to $1,500 from $1,000 for members, member firms, and hedgers, and to $2,025 from $1,350 for speculative customers.' Thus forcing smaller gold speculators out of the market, as they could not afford the new margin requirements. This is a particularly direct assault on the people and further clear evidence of a concerted effort on the part of the powers that be to control the POG.
That's the story, there is more, lots more, (and you can read the whole history of this battle over at www.GATA.org, which I absolutely suggest you do) but I don't have room for that here. Now we are on the same page: Just what can we do about it? Well we are not capable of doing what James Bond would do - that's for sure! He'd storm Fort Knox to go see if there were any of our gold left in there (which seems awfully doubtful at this point), then he'd go in search of Goldfinger and in the end "do him in." But we're not like that here, we're Peaceniks! We believe in change through consensus, in the power of the people to decide their own fate, in the democratic process, our Founding Fathers, the Constitution, the Bill of Rights and the spiritual nature of humanity.
So here is what I suggest, and its really quite simple. On Wednesday February 19, 2003 when you get out of bed go to the phone, the computer, the local mint or your stockbroker and buy gold! Buy physical gold, buy gold mining stocks or buy precious metals mutual funds in your 401-K. Whatever you can do, DO IT! However much you can invest, INVEST IT!
If you have enough for some American Gold Eagles, go get some. If you have cash in a brokerage account go buy an UNHEDGED mining stock. If you have money in the money market at your IRA or 401-K take it and buy a precious metals mutual fund.
IF WE ALL DO THIS TOGETHER ON WEDNESDAY FEBRUARY 19, 2003 WE WILL MAKE OUR PRESENCE FELT!
This is a vote of NO CONFIDENCE in Goldfinger - this is a message that says, "We the people will not stand idly by and allow this massive manipulation to carry on." There are so few ways in this modern, technologized world for all of us to really make our presence felt in the socio-economic and geo-political arenas. I have already attended a couple of peace marches to protest the war, and I know it is having an affect as millions take to the streets globally. Together, if we march for peace and protest the manipulation of gold with our wallets we WILL make a difference.
I commit right now to buying gold on Wednesday February 19, 2003. I commit to the Power of the POG to make a difference. You can help, jump in. Make a commitment and help free the POG from the grip of Goldfinger!
This is NOT meant as an advertisement for gold. By driving the price of gold higher through people power it is an attempt to teach Goldfinger a lesson, and put the squeeze on financially, where it is most felt! I hope you will join me.
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