Until The Gold Cartel is defeated, what I and everyone else reports on regarding the gold market is mostly a bunch of noise. Every time gold rallies it will be crushed by the cabal monsters, just like we have seen the past few days. This is why the following is HUGE news for anyone who intends to make money with their precious metals investments:

Sprott Asset Management Inc. Publishes Gold Manipulation Study

TORONTO--(BUSINESS WIRE)--Aug. 24, 2004--Sprott Asset Management Inc. announced today the publication of Not Free, Not Fair: The Long-Term Manipulation of the Gold Price.

The study represents the most thorough and detailed examination of allegations that the gold market has been subjected to severe price manipulation over the past several years.

Commenting on the landmark report, John Embry, Chief Investment Strategist, stated:

"We, at Sprott Asset Management, have felt for some time that the gold price has not remotely reflected its true underlying fundamentals. In response, we have conducted a comprehensive study of available information on the subject and have concluded that the evidence strongly supports those who believe that the gold price has been and continues to be suppressed."

The study may be read in its entirety on Sprott Asset Management's website: www.sprott.com.

Sprott Asset Management Inc. (www.sprott.com) is a Toronto based private company with over $1.6 billion in assets under management primarily for institutions, endowments and high net worth individuals. Sprott Asset Management Inc. is the investment manager of the Sprott Energy Fund, Sprott Gold and Precious Minerals Fund, Sprott Canadian Equity Fund, Sprott Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund LP II and Sprott Opportunities Hedge Fund LP.

-END-

This report has been sent to the major financial market press in Canada, the US and part of Europe. It also has been sent to every major gold producer and to many of the junior gold producers. The reason why this report is so significant is that the "Dracula-like" Gold Cartel cannot withstand “the light of day” that scrutiny brings. The cabal’s cross is THE TRUTH, which they have gone to Herculean efforts to hide from the investment world. A dispassionate report such as this one, which ties together so many FACTS, is going to shine a light on what the gold market has been really about for many years.

As more and more investors realize what the price manipulating cabal has done, they will want to buy more physical gold because the eventual outcome for the price will be more apparent. It must go MUCH HIGHER! Big player investment-types will come to appreciate this Gold Cartel is RUNNING OUT of enough physical supply to carry on their fraud. As this report circulates its way among other central banks, it will attract more Argentinas who will realize the value of adding gold bullion to their currency reserve positions.

When it comes to the major gold companies and the ones you are investing in personally, they will need some time to read this very detailed report and to digest its findings. Then, they should be asked what they intend to do about it, for there is no more important issue they can address. For if the price of gold is not allowed to rise like it should in a free market, it won’t matter what else they do as a firm. As gold company shareholders, your investments will remain a losing proposition if The Gold Cartel is allowed to continue on their merry, scheming way. I reiterate. The price of gold should be hundreds of dollars per ounce higher than it is today and will be once The Gold Cartel is exposed in a major league way. It is up to GATA, gold producers, and gold shareholders to win the day. This brilliant report by Andrew Hepburn, John Embry and Sprott Asset Management is one the entire gold industry should run with. Let all Café members and GATA supporters do their part to make sure this report gets the proper attention it deserves. Spread the word, thunderbird!

For example, this is an interchange I had this morning with a European Café member who happens to be a highly regarded journalist:

agree...already done....distributed to 700 professionals of my mailing list and on my website...
this will make a difference...
willem

The gold capping last Friday was as blatant as it will ever get, as evidenced by the extraordinary 19,000+ contract open interest increase. Gold should have rallied $16, not $6, with that kind of buying power. It did not because word went out from cabal headquarters to STOP the advance. Yesterday and today were follow-through cabal efforts, which have been effective. The gold open interest rose another 4,745 contracts yesterday to 261,822 as further evidence of fund buying and cartel selling. As of today’s close, all those in the Gold Cartel who sold yesterday and Friday have nice profits. The specs who bought the breakout above $405 are underwater. .

Tired silver continues to retreat. While the funds were pouring into gold yesterday, they began to puke out their silver longs. The open interest dropped 2607 contracts to 102,324. The gold/silver price manipulators have the specs in these markets on a merry-go-round. They suck them in and then blow them out. Do you realize how much money these crooks have made over the past 8 years? It is staggering!

The silver stocks in the Comex warehouses fell to a new multi-year low at 109,550,402, down 580,112 ounces.

Ted David of CNBC had the acting head of the CFTC on this morning to talk about possible oil price manipulation. When a market goes against what Wall Street wants, it must be manipulated. Yet, when we bring their attention to the most obvious market manipulation in history, that being the suppression of the gold price, they won’t touch it, as it is against the interests of Wall Street. Fair and balanced? What a joke! That includes you, Bill O’Reilly at Fox News, you bombastic Irish blowhard!

Indian ex-duty premiums: AM $6.42, PM $6.90, with world gold at $407.20 and $406.40. High: ample for legal imports. At these prices, India is prepared to underpin the world gold market. Standard London resumed regular updates of their Dubai kilo bar prices today

(http://www.standardbank.com/PreciousMetals/home.asp ); the premiums which can be deduced are still respectable.

Japanese liquidation has accelerated. Although the active contract closed down 12 yen, open interest fell the equivalent of 1,112 Comex lots to only equal 92,381 Comex contracts. The 1-day lagged Member’s position data suggests this may understate the pace of the public’s retreat from the market in the last few days. Aggregate volume was down 48% to the equivalent of 19,066 Comex lots. The two-week long rise in the yen seems to be eradicating any appetite on the part of the public for gold futures. (NY yesterday traded 40,312 contracts; open interest rose yet again, by 4,745 lots.)

Yesterday’s steady selling pressure has emboldened the Bears, with both JP Morgan’s "Metals & Energy Technical Strategist" and Commerzbank’s Technical commentary stressing that gold stopped on Friday at the upper bound of an uptrend channel. Morgan has put on a short and Commerzbank is musing about a move to the lower bound of the channel, at $385. Getting there, considering current premiums, would take a great deal of physical gold sales.

Undiscussed in all this is the significance of the huge, 59.7 tonne open interest increase reported yesterday. Open interest has now risen 39,235 contracts – 122 tonnes – in the past five business days, for a net gain of just over $7. UBS rather plaintively notes that their estimate that the Comex net long is about 15 million ounces still leaves 7 million ounces to the Q1 peak, but in fact the inflection rate is chillingly steep. Even yesterday’s down gold price day, which must have shaken out some of Friday’s more opportunistic longs, saw an appreciable open interest increase. One notes that John Embry’s 70 page discussion of gold price manipulation, posted this morning to his firm’s website http://www.sprott.com/ , has excited so much interest the web site keeps crashing. This seems understandable.

JB

As is so often the case, the S&P and other futures contracts came in a good deal higher as the PPT did what they could to set the market tone once again. Their efforts met modest success, however initial gains were not held for the most part. The DOW gained 26 to 10,099, however the DOG lost 2 to 1837. The S&P closed around 3 points off its opening call.

The dollar rose handsomely once more to close at 89.55, up .37. The euro fell .62 to 120.79.

07:45 UBS chain store sales index +0.1% in 8/21 week after (0.6%) in prior week
* * * * *

Redbook chain store sales index (1.0%) through 8/21 week vs June
This marks a slight deterioration vs the (0.6%) reading vs June reported last week.
* * * * *

10:00 July Existing Home Sales reported 6.72M vs. consensus 6.81M
June reading was revised to 6.92M from 6.95M.
* * * * *

GATA’s Mike Bolser:

Hi Bill:
The Fed added $6.5 Billion in temporary repurchase agreements today August 23rd 2004, an action that shot the repo pool up to $56.265 Billion but also kept its 30-day ma running flat in a "plateau" pattern. The DOW remain weakly up about 30 points at 11AM. The pool's 30-day ma runs at $45 Billion a value that is the highest of the series and what I see is the beginning of a sustained period of elevated repo pool conditions.

Looking forward there is a largish expiration on September 2nd of $11 Billion and IF the Fed chooses to offset that expiry with an equal amount, the pool will have an intra-day value of say, $20 Billion PLUS the carried amount giving the primary dealers a very large source of futures buying exactly at the beginning of the real political season. I am still holding to the notion of a DOW September rocket until, as a Blue Dress challenged president once said, "Until the last dog dies". I will none-the-less be happy to concede defeat.

Gold

Even though gold seems to have slipped back to $406.20 (PM Fix) the dollar went up somewhat offsetting the drop when we use the DIVG to value gold. More later.
Mike……..

Hi Bill:
During this period of Fed transition it is important to watch things very closely so as to obtain the earliest possible data on their new intentions.

Today they are continuing to ease the DIVG ma upward while giving the false impression of another attack. They may yet enter a cyclic down move, attempting to hold a defense line with a smaller wave pattern than they did in 2003.

The DIVG sits at 352.78. Some of my other metrics have yet to change downward in the MCDI and upward in the PM Fix but I'm expecting them to move those directions this week.

I am quite certain of the importance of the DIVG to the gold cartel and offer four telling characteristics (1) The dollar/euro parity ceiling defense at DIVG=323 (2) the clear cyclic defense of three waves above and below that line (3) the almost perfect linear retreat which began in Feb 2004 as a result of the Fed failure to hold the 200-ma below the target DIVG 323 level and (4) the choice of a retreat slope being exactly equal to that linear regression slope of the previous six months (beginning with a very bad DIVG upward loss day on July 21rst 2003).

These facts cannot be explained by anything other than human intervention in an effort to steer the 200-day ma. There are other implications that will be revealed in the future from this set of facts that shatter the Fed's dollar/gold propaganda machine.

The existence of COMEX preemptive selling, with its 3 and even 4 standard deviation episodes has provided an anchor which firmly holds the assertion of government intervention and serves as a warning to all that imagine a freely traded market in precious metals. That belief is a Fed engineered illusion.
Mike

Houston’s Dan Norcini on the soaring gold open interest:

Hey Wild Bill:
Open Interest figures just came down the wire feed and again, they are shocking. They show another massive increase in new shorts, (some 4,475 to be exact) absorbing every bit of fund buying yesterday as well as that of Friday. That yields a total of 23,807 new shorts thrown at this market by the gold cartel in the last two trading sessions alone. We are now at 261,822 on the total open interest.

Sadly, this is all too eerily reminiscient of their ploy merely a month ago when they piled on enough shorts to bring the Open Interest totals to 263, 574 before gold rolled over again near the 412 level basis December 04. With today's price action, some of the short term oscillators have already turned down once again exactly as they did a month ago.

Mahendra might have said that "no force on earth" could keep gold from rising this time around, but Alas, Mahendra, the cartel view themselves as demi-gods in their own mind and thus are the high and lofty ones who have condescended to grace us mere mortals with their heavenly presence. As such, they are not of this earth! (Just ask 'em - Last I heard they were ordering T-Shirts with the words "BE LIKE US AT THE GOLD CARTEL" printed on front and back). I even heard the rumor that Alan Greenspan had posed for a picture to imprint on a special edition Gold Cartel Sweat Shirt (If you order two of them, they will throw in some of those knives that let you cut through cans and still slice tomatoes with ease). I personally view them as better suited to the bowels of the nether regions (some refer to that as hell) but that is only the opinion of a mere peon, an ungrateful wretch who fails to recognize how greatly they have benefited society as a whole! Truth be told, the pond scum who make up this cartel feel they have been given some sort of God-given right to plunder the wealth of those who are prudent enough to hide themselves from the coming financial storm.

The short of it is that gold is in a reaction setback mode right now after having risen nearly $30 in less than a month. We will have to see where the buying support surfaces. I have a feeling that it is going to be at a higher level than last time. I am especially interested in how it handles the $400 region. Physical market buyers are indeed waiting under this market and will let it come to them. When they step up to the plate, we will more than likely take out to the reaction high near $417 this time around very quickly and easily. The dollar rally is a joke.

Time will tell.
Best,
Dan Norcini

What is so sad is that so many people associated with the gold market and who make commentary are affected with the Not Invented Here Syndrome. Because the discovery that the gold market is a manipulated one is not their own idea, most will not deal with the most important aspect of this market. You would think the recent and incredibly obvious price management (via the dramatic open interest rise versus the minimal price movement the past few days) would enlighten many individuals still analyzing gold as if it were a free market. Fortunately, the people at Sprott were willing to deal with the evidence and are mature enough to speak out. This is no small event. It is extraordinarily significant, as it will expedite the downfall of The Gold Cartel.

Chris,
On March 26, 1951 Mickey Mantle crushed a home run in an exhibition game played at Bovard Field at the University of Southern California. The ball left the park in right-centerfield, and crossed a football field adjacent to the baseball diamond. It is reputably the longest home run ever hit, traveling 656 feet, over two football fields long.

That's how I feel what GATA did today with the release of the Sprott study by Embry (and Hepburn). Congrats on a job well done. Now maybe we get some publicity.
Dale Holmgren

On JP Morgan Chase, the derivatives King:

Bill;
This Reuters article: http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=6038683.......... speaks of J.P. Morgan's talks to become a stake holder in state owned - Bank of China. They are already "banking" Iraq. GATA wonder what's next eh? Wouldn't you figure they have enough on their own plate?

Amount of notional increase J.P. Morgan Chase derivatives book increased in latest quarter – 3.2 trillion.
Who J.P. Morgan does all those trades with - ?
Assuming there are 20 hours in a day that J.P. Morgan can viably transact global business institutionally, trading minutes in a day – 1200
Assuming 22 business days per month, number of business days per quarter – 66.
J.P. Morgan tradable minutes per quarter – 79,200.
Increase in book size this quarter: 3,200,000,000,000 / 79,200 = 40,404,040 per minute.
Number of lunch and bathroom breaks traders at J.P. Morgan take - ?

Then again as evidenced by the numbers above, these guys really are good - aren't they?
best,
Rob

From Stephen Leeb, a well known money manager:
Aug 23, 18:10
Since the end of 1998 oil has climbed from about $10 a barrel to its current level of over $45. Not once during this entire period has any major Wall Street firm forecast a higher oil price one year forward. Wall Street, in other words, remains a subject for the psychology texts with denial and group thinking overwhelming any semblance of analysis. –END-

It’s not only oil. I can’t think of one Wall Street firm who predicted the gold market rally over the past three years either. Notice a pattern here? Both a rising gold and oil price are negative for Wall Street. Therefore, they refuse to deal with it honestly by giving objective analysis to the public. Either that or most are Ivy League stuffed-shirt dummies.

This is another example of the kind of effort it will take for us to win the day:

Hello again Bill:
I think that we're about to turn the corner on the gold cabal. I believe the timing and contents of the Sprott report is an ominous development for the manipulators, released at a MOST inopportune time, given their latest egregious machinations. Their footprints all over gold and the US$ today could not be more obvious. I am e-mailing that report to as many financial reporting agencies as I can. The cabal is DEATHLY afraid of something, and we're going to find out what that is shortly.

I have been through the wringer with gold since 1999, yet I believe it is time to buy TODAY, and I'm acting on my information and beliefs. I surmise that our time is at hand; and I sense blood in the market waters. I am close to completing my buying of trading positions in Novagold and Golden Star today. I fully expect to regale all those who will listen in the future with tales of my purchases today.

My greatest temporal concern remains: what kind of country (and world) have we devolved into as a result of the unprecedented monetary fraud we have been subjected to by the banksters, who appear to own and operate the finances of the de facto U.S. government with impunity. Time will tell as always, and time is on OUR side.
best regards, Tom K

Hi Bill,
Well, once again the gold crowd has proven it has all the dedication of a mercenary with a better offer. Someone at the dollar-diddling ESF screams "Boo!" and these metals guys exit their positions faster than a first-time fire walker over the red-hot coals!

I swear I just can't figure out what makes these gold bugs tick. Why are they so damned skittish? They dart in and out of position like water bugs. Things finally begin moving our way again, and these ninnies have all the conviction of a cliff diver with acrophobia.

Maybe these folks know something we don’t. Do they have a strong case for their unwillingness to take a stand? Let's have a look at two quick charts to find out...

Here's a multi-month chart of the U.S. Dollar. This chart was created using data through yesterday, but if we could see today's price action it would show us that the dollar came just up against the down-sloping top green line and bounced right back down.

Naturally, the price will have to break out of this symmetrical triangle in the next week or so. My only question is, why would anyone be banking that the direction will be UP!!???

The dollar's fundamentals stink to high heaven—perhaps as badly as at any time in the last fifty years. With nearly everything going against it (including the administration's need for a weaker dollar to have any chance for re-election) I can't imagine that anyone in his right mind would be a long-term dollar BUYER. The ship is sinking but the band plays on...

Now, here's the gold chart:

Bill, have a look at this graph and tell me just one thing: what on earth has this wimpy gold crowd so scared to take a stand?

This isn't just some six-week chart we're looking at. This thing is now firmly established for THREE YEARS! And look at that MACD indicator. It's coming off the most oversold condition since the major uptrend began, and folks are jumping ship—again!—as if Ronco just invented a gold machine and was selling it on cable (with a set of Ginsu knives, no doubt) for $19.95.

Sheesh. All I can say is that when (not if) the metals finally take off for the moon, those of us who stayed in the game can't possibly be compensated enough for having stuck with our convictions.

Frustrated but still on board,
Derek

The gold shares continued to work off their overbought condition. The XAU dropped 2.14 to 91.66 and the HUI lost 5.50 to 199.35.

The Sprott gold market manipulation report trumps everything else by far today. This is a highly regarded firm which has put its name and reputation on the line in an effort to expose one of the great frauds in market history. They are also going all out to give the gold industry ammunition to help itself. This is a facet of the mainstream gold world speaking to the rest of their community.

Let all of us do our part and run with this extraordinary report and effort. It is time for The Gold Cartel to be put in their place, and for the price of gold to trade freely in accordance with its natural supply/demand fundamentals.

GATA BE IN IT TO WIN IT!

Appendix

Dear Bill,
Once again I am happy to give my newsletter for this week to all your members. After reading this week newsletter, inventor's will come to know the reason and your strong support. Tomorrow I will announce that in how many days gold will going to hit $448. Looks exciting, so wait for alert news in next 14 hours.
Thanks Bill

Dear Members,

Today I would like to share some good news as I have already started writing the 5^th edition of the "2005 World and Financial Prophecies". I expect to release it around the middle of December as usual or in the first week of 2005.

So far, major predictions on the market ("calls" in financial language terms) have closely matched the trends.

I can state that after 20 years, I have finally found the path in regard to very short term predictions and will therefore be able to better guide my members on short term positions. I am one thousand percent sure that astrology has a vital role to play in guiding investors onto the right path. It has always been a matter of concern to me because I feel that investors have been misguided by manipulators and newsmakers. Since most banks, large funds and financial institutions make their money in the market, it is sound to conclude that someone is losing. The common investor or small funds prominently features in this losing list. If big bank come in problem, government or Federal reserve will come forward and save immediately but who care about small investor's (Govt won't come forward and say that don't worry we will take care of your family). There is also problem in human nature because it accept negative energy very quickly. Let me focus on my work and here I just want to recap on USA:

If you read the USA section in my 2004 World & Financial Prophecies (Page 72): It says:

The economy data will continuous show strong recovering in USA during first quarter of 2004 and but before the mid 2004 trade deficit will spoil the whole scenario for investors. First time I will strongly warn investors to play safely in market because USA stock market index can go rock bottom.

In the early chapters I mentioned that the economy would face a major blow. Towards the end of 2004 inflation and unemployment will also rise.

In the stock markets, investors should book profits when they gain by 10% to 15%. For the first quarter few technology companies will rise but they will also follow the downward market trend. In 2002, many people did not believe that the technology sector would rise again but I clearly stated as follows:

2003 World Prophecies, page 36.

I went further to say that:

LET US SEE WHAT INDICATES FOR THIS WEEK. NEWSLETTER FOR 23 AUGUST TO 27 AUGUST:

GOLD

Last week’s performance of gold was in harmony with the wave of Jupiter, something that I have been expecting for a while. The second important thing that happened is that gold and silver prices went up on the third Friday. Both occurrences are very encouraging signs for future trend in metals as I saw last year when I was writing my book.

Last week I made two important statements in my newsletter:

THERE IS NO EXTERNAL POWER ON EARTH OR THE UNIVERSE THAT CAN BRING DOWN THE GOLD AND SILVER PRICES. DESTINY HAS BEEN WRITTEN AND I AM JUST PREDICTING IT AS IT IS.

I went further to assert that:

During this week from Monday evening before closing or Tuesday gold will say bye-bye to $400 for the next few years. I think that this is great and exciting news for gold investors. I also have very good news for gold stocks as I see the current prices for metal stocks being history.

During this week I see gold prices being upbeat and moving upwards except for a slight leaning towards the directionless zone on Tuesday. Those who do not want to stay in the uncertain situation on Monday or Tuesday should get out and get back into buying positions on Wednesday. I shall give an update of this on Wednesday. As I said last week, time is saying bye-bye to the $400 mark and there is therefore no need to remind you again.

Any minor down ward movement should be taken as a buying opportunity. Gold stocks performed well during the last week and they will give the best returns in the next few years. One should therefore think hard and long before selling metal stocks. Same I saw for technology stocks in 1996.

SILVER

My favourite commodity for 2004 is performing well. Monday and Tuesday may remain volatile or a bit on the downside but from Thursday it will have a great rise so don't miss this buying opportunity.

PLATINUM AND PALLADIUM

We are just a few days from a great rise of Palladium. Those who have not bought it should put some money in it. Platinum will remain stable during this week.

COPPER

Whole weak copper prices will remain stable but from this Thursday evening or Friday copper prices will have a great run and reach a new high in a few weeks.

OIL

This is second on my 2004 investment list and has performed extremely well, surprising both the investor community as well as economists. The first predicted target of $50 was almost attained last week but I now expect prices to remain on a down ward trend from this level. My advice is therefore that you get out from its buying position. I shall give the buying signal soon after this down ward trend, which will be around 10%.

STOCK MARKET

Markets are floating in the worst cycle that will soon give way to a major crash signal. Just as I recommended last week for short term buying, I hold the same for this week. However, always book profit on each rise because I will soon issue an alert on when to short/sell.

CURRENCIES

The movement of the Japanese Yen last Friday as per my newsletter prediction surprised everybody. The Yen is placed third on my list and it will remain strong from Tuesday. All other currencies will have mixed results except the Swiss Franc. The South African Rand is on the way to crossing the 7 mark against Dollar.

OTHER COMMODITIES

Coffee: Wednesday is a very important day for coffee and you should therefore wait for update on coffee.

Cotton: Last week because of Moon I made a good call on cotton. It gained 12% and I recommend that you hold your position.

Corn/Wheat: Buy at this level and sell at 5% gain. I see a strong performance from corn and wheat.

Soybean: I see high volatility on both sides in soybean prices during this week. I recommend that you remain away from it.

Thanks & God Bless
Mahendra 22 August
http://www.mahendraprophecy.com/