Food for thought,
We have felt for about one year and one half that the Dutch have been selling gold, secretly. Almost no one believes this. If this is true, it means that the demand for gold is much greater than almost everyone thinks. We have been told this last tranche of EMU related central bank selling is coming, or has come to, and end. If we are correct, and this is the case, future near term supply will be greatly reduced and this big source of supply, that has been there for some time, will not be there to suppress the next price rally. A big rally.
Last week we received a tip that the specs were going to be set up before a big gold rally. The old Swiss news, of there potential future sales, released again yesterday, accomplished this. Open interest, on Comex alone, was up over 9,000 contracts. OTC increase
in spec shorts was much, much bigger. Today we received a rumor, supposedly coming from another good source, that something about a Dutch sale was spreading among the highest echelons of the gold market. This is the first time we have heard this. Our good friends at the gold-eagle web site reported an astonishing number of hits on their site from a highly visible Euopean Central Bank. The number is the most striking one I have ever heard of from an institution of this type,
Today the XAU was up 1.50 with gold down $1. If a leak has occurred, one would buy the big cap gold stocks. Time will tell, but if a big sale is announced, it will change the dynamics of the gold market very favorably, no matter what the initial reaction is.
Bill Murphy
Veneroso Associates |
