The following is by Bob Chapman on 8.3.5 and is available at http://news.goldseek.com/InternationalForecaster/1110305694.php
GOLD, SILVER, PLATINUM, PALLIDIUM, AND DIAMONDS
We are amazed that as world elitists manipulate markets and suppress gold and silver prices, producers stand idly by for the most part, and say nothing about how their companies are being destroyed and their shareholders robbed of profits. There are a few voices but only a few with the guts to attack the problem, we find this extremely disappointing that these executives are so gutless. Just as bad is that there are only a handful of newsletters who will broach the subject - they run in object terror. Then again, most of them are “Johnny Come Lately’s”, who are in for the fast buck. We have seen lots of that gutless type as well over the last 46 years.
The demand for gold over this year is startling, particularly for India. Gold jewelry demand was up 4.9% and investment demand 32%. These are spectacular numbers. We wonder what lies the World Gold Fantasy Council and Gold Fields Mineral Services will have to say about that. They have been lying about the statistics for a long time to cover central bank sales and leasing.
It is just like 1977, everyone is buying gold except the dumb Americans. Fourth quarter consumer demand rose 5% in tonnage and 18% in dollar terms versus the fourth quarter of 2003. For the year, tonnage was up 20%. As this sterling performance held forth, hedgers were de-hedging as fast as possible. They covered 59% more gold than 2003. Gold supply fell 13% versus 2003. One of the biggest surprises of 2004 was that scrap supply was 14% lower. All these favorable developments should have propelled gold much higher but as you know our government is our enemy. We have three things on our side. The elitists have to be running out of gold. Each time they do a major price manipulation more people catch on to what they are doing, especially professionals. Production is barely holding its own and physical demand is hot and overwhelming.
Japanese gold imports for January were 10.95 tons or 97% above December and 71% higher than 1/04. As we head for the abolition of bank deposit insurance on 3/31/05, we will see more and more excess funds moving into gold.
A stronger South African rand and a suppressed gold price are taking its toll on South African gold mining companies. DRD Gold fell to a four-year low last Friday as it dropped 23.5% for the day and wiped out $83.20 million of its share equity. It fell 4.6% on Thursday or 28.1% in two days. Liabilities exceed assets and a cash squeeze could put them out of business and into bankruptcy. We had warned you over and over regarding South African gold shares. Get out and stay out.
The Philadelphia Stock Exchange changed the PHLX Gold/Silver Sector Index (XAU) effective 3/21/05. Glamis Gold (GLG) and Pan American Silver (PAAS) will be added while DRD Gold (DROOY) will be deleted.
Probably at the behest of the Bush administration and the Federal Reserve, the Securities Exchange Board of India and the Reserve Bank of India are working out the rules for mutual funds to float gold-backed units, which would be traded on exchanges. This is a further effort to suppress gold prices.
