Steve Quayle News Alerts

July 19, 2002
The James Joyce Table: Gold, Commodities, Midas du Metropole

How rare are days like this in gold? Very! In the last 14 months, there has been only one stronger day, on a closing basis. That was on Feb. 5 of this year when gold rose $9.

You would never know it by the action of the shares. The XAU was only up .60. The gold shares flopped for one of two reasons:

*Investors in the general market that own gold shares dumped them, taking profits in any stock they could.
*Over the years gold share investors have seen the cabal take gold down at key resistance levels and these same investors are tired of watching gold share profits disappear. Those folks expect gold to fail on Monday.

Even though gold put in a very strong day, it could not have been more obvious that the surprised cabal gathered its price-fixing team and capped spot at $324. Yes, gold traded several dollars higher than $324 as buy stops were set off early in the Comex session, but that did not last long as the cabal quickly mobilized.

Still, gold is only $3.30 from closing in new high ground for the move.

Where do we go from here? That depends on The Gold Cartel and how much more they can take. What is very important to keep in mind is that almost no one in the investor world knows what you know about the gold price rigging. One day, maybe soon, gold will be up $100 in a week.

This is very important because a $100 gold move and resulting financial chaos is not factored into the stock market in any way. It would not surprise me if the gold move triggers a market panic sell-off, which may mark a temporary bottom.

Silver is only ten cents away from going into new high ground. Yesterday, 1.6 million ounces was withdrawn from the Comex warehouse.

CARTEL CAPITULATION WATCH
The DOW, down 390 to 8019.
The DOG, down 38 to 1319.
The S&P, down 34 to 848.

For the life of me, I cannot understand why this stock market drop should surprise anyone. The P/E is still double the historic norm, that is if future corporate profits do not shrink.

For a VERY long time Midas has said that the investing public and Wall Street was not dealing with what happens to financial markets after a “bubble” bursts. They sure are finding out now. It’s not very pretty.

The Gold Cartel is in BIG trouble, or should it be Biggs trouble. That report is a home run for GATA and for the price of gold. I will go into that in the next Midas.
J.P. Morgan Chase closed at $26.10, down $1.10. It has broken all support and completed a massive TOP. It looks ominous. YES!

The CRB closed in new high ground for the umpteenth time at 213.95, up .67.

Yikes:
Friday, July 19, 2002
The United States trade deficit ballooned to a record $37.6-billion (U.S.) in May, reflecting Americans' ravenous appetite for foreign-made cars, TVs and clothes.
The U.S. Commerce Department reported Friday that the deficit was 4.1 per cent higher than the revised $36.1-billion trade gap reported for April.
Many analysts were predicting a slight narrowing of the trade imbalance in May. -END-

Get this, ANOTHER “price-fixing conspiracy.” They are a dime a dozen in America. How can the gold industry be such a bunch of empty suits on this issue when the gold price-fixing conspiracy has stared them RIGHT IN FACE for SO MANY YEARS? Blows my mind.

DaimlerChrysler Is Being Probed for Price Fixing
Washington, July 19 (Bloomberg) -- DaimlerChrysler AG said the U.S. Justice Department is conducting a criminal investigation into allegations the company's Mercedes-Benz subsidiaries took part in a price-fixing scheme among U.S. dealers.

The No. 5 carmaker said in a filing today with the U.S. Securities and Exchange Commission that the investigation is connected to a class-action lawsuit previously filed against two of its Mercedes-Benz units. The subsidiaries, Mercedes-Benz USA LLC and Mercedes-Benz Manhattan Inc., have been served with grand jury subpoenas, the company said.

The class-action lawsuit filed in U.S. District Court in Newark, New Jersey, accuses the units of participating with the dealers in a ``price-fixing conspiracy,'' the company said. Last October, DaimlerChrysler was fined 72 million euros by the European Commission for refusing to sell cars to Germans who shopped abroad in search of lower prices.

The company said today its U.S. subsidiaries ``intend to defend themselves vigorously.''

U.S. shares of DaimlerChrysler fell $2.84, almost 6 percent, to $44.71 in midday trading.

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