Gold & Silver Potpourri

July 29, 2002

Gold and gold shares are way over sold. Gold producers are very transparent companies except for those that hedge. The irrational action should be over. Yes, even though they deny it there was a secret FED meeting regarding some banks lack of liquidity and their derivative exposure.

The best mining companies shares are off 30% to 50% plus, over just a three-week period, and most of the losses coming over a few days. Every indicator said that gold and silver and gold and silver shares should have been up big.

Corporate and governmental fraud and scandal are everyday occurrences. The dollar and the stock market are in the dumps and the European markets have been trashed.

Redemptions over the past two months and particularly over the last week have been huge. The fund manager, rather than run his stocks lower by selling the Dow and S&P stocks, sells the golds to get liquidity.

Why should *Goldcorp and *Agnico Eagle fall 25% in two days unless, of course, the fund sellers of gold shares are silently assisted by our government. The gold shares are now trading at prices equal to $285 per ounce of gold. That in our book makes them a steal. Take advantage of the correction and buy!

Most of you never having lived in Europe can't appreciate the European penchant for gold, especially gold held by their central banks. This desire was born out by the ECB being forced to include gold as 15% of its reserves. Wait until the Germans find out all their gold is gone. They'll probably find Gerhard Schroeder hanging from a light standard on Bahnhofstrasse.

The US Treasury and the FED have played the Bundesbank for suckers. We believe that shortly the German people will find this out and their actions could force a total capitulation of the gold manipulation cartel. The Bundesbank's transgressions could be exposed soon internationally by GATA via the German press and TV and also in the US on C-Span. The noose is tightening and what better place to start than in Germany. This would be major campaign fodder for Edmund Stoiber. If any of our German subscribers know Mr. Stoiber, please put him in touch with LeMetropoleCafé.

The manipulation of gold and silver prices and shares is so obvious that it astounds us. These conspirators don't care who knows what they are doing. That manifests their police state mentality. Reporters either don't report what is going on in the metals market because they are clueless, or they are told to shut up. The same goes for the brokerage business. Do you really think Barton Briggs wanted to run away with his tail between his legs?

JP Morgan Chase and Citicorp shares were clobbered, and word is they and all the other banks and investment banks were pulling money out of Europe due to a liquidity crunch. The FED and other central banks are again secretly supporting the dollar. The Plunge Protection Team almost every day attempts to manipulate the Dow. They are in reality spreading the pain far and wide as they distort the inevitable. When you have government manipulating markets there are no professionals only insiders.

Needless to say our phones have rung off the hook all week, and we've been getting 300 e-mails a day asking what to do. We are in the precious metals for the long haul. We buy and hold. Nothing has changed. If we published every day there would be those of you who would trade every day. Our experience tells us about 25-30% occasionally like to trade the other 75% are in for the duration. We say buy and hold and when you get uncalled for 40% corrections you use them to buy more shares if you have the capital available. We are sticking with our projection of $350 gold by the end of the year. Nothing has changed except the world financial situation is bleaker than ever. We are right and we will prevail. We can assure you our government was in the market pounding the major gold stocks. We have devoted our whole lives (42 years) to the gold markets, and we have never ever seen such reckless selling. Not just selling, selling to achieve the maximum amount of damage just like we have seen since 1995 in the gold market by the same elitists.

Gold shares have leverage to earnings, the gold price and due to the fact that there are only $50 billion dollars worth of shares you can buy. That is exciting when gold climbs higher because as you've seen the shares are the super performers. We also just found out that leverage of only having $50 billion in value makes them relatively easy for government to manipulate.

The conspiracy is in very deep trouble. They not only need bullion down as the game of rigging comes to an end, so they can cover, but they also have to have the shares down so they can convince the average investor that gold and gold shares are not good investments, and if they aren't then there is nothing wrong with the financial system. While they pull this caper they are rigging the stock market daily with your tax dollars. If you are faint of heart switch to Treasury Bills, but if you believe what you read here each week that the financial system is systemically corrupt, then stick with your stocks and buy more. We are still in a gold and silver bull market and that's a fact. Gold should finish bottoming by August 5th.

Word reaches us from a deeply implanted mole that a major silver problem is brewing. Silver must be delivered quickly to avoid a major run on the metal. There is a major scandal that is ready to hit, which will send silver prices considerably higher.

The secret to deflating the gold cartel is to break JP Morgan Chase. They have become the weakest link. Once they go down the other gold manipulation members will fold, as well as the Treasury, which will have to front the losses, which we get to pay for. We are not far from victory. Just hang in there. Within six months the public will clamor for blood and we will be happy to supply names and supervise the proceedings. This time we have them.

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