Art Rolnick, the source of tonight’s quote, was voted the 2005 Minnesotan of the Year??
http://www.minnesotamonthly.com/current/rolnick.html
(courtesy of Sarge, my brilliant editor)

2005 was some year, however, it will pale compared to 2006. In the last half of last year The Gold Cartel lost control of the gold market … meaning they lost control of their rigging of the price of gold which left its price artificially suppressed since 1996, or earlier.

As a result of this loss of control, the price is beginning to accelerate to the upside. Increasing demand for physical gold from various quarters is overpowering The Gold Cartel’s gradually diminishing supply.

Contrary to what almost all the gold pundits and gold mainstream gold world thought a year/two years ago, gold is moving on its own because of this one particular reason. It is not moving because the dollar is weak, inflation, safe-haven stuff, falling stock markets, etc. It is on the move because The Gold Cartel is on its way out. In time all of these other factors will kick in and send gold much higher ... WAY up, to over $2,000 per ounce … most likely to between $3,000 and $5,000) per ounce, as per the thinking of Sprott’s John Embry and Wits Gold Chairman Adam Fleming at Gold Rush 21.

What role has GATA played in the price of gold since the Spring of 2001, when the gold bull market commenced? We will have to leave that for others to judge as time goes by. Yet, I think it is fair to point out the following:

*GATA held our GATA African Gold Summit in Durban, South Africa on May 10, 2001. Five African nations attended, as well as the South African Reserve Bank, major SA gold mining producers, COSATU (their labor union), the National Union of Mineworkers, and other notables. It was covered prime time by the South African Broadcasting Television Network.

http://www.lemetropolecafe.com/pfv.cfm?pfvID=1502

The day before the conference GATA held a dinner for some of the attendees. Gold unexpectedly surged that day around $5, a lot back then and even for years to come. The price was somewhere around $265 per ounce in those days. When you look at the gold monthly, you will see gold never looked back after the GATA summit … going up ever since.

Monthly gold
http://futures.tradingcharts.com/chart/GD/MThen, on August 8^th and 9^th GATA held our historic Gold Rush 21 conference in Dawson City. Two days after the conference gold exploded, up $11 at one point, and easily broke the cabal’s $6 price-capping Rule on a closing basis. Since then gold has gone STRAIGHT UP on a MONTHLY basis and has now begun its acceleration phase to the upside.

One heckuva gold bull market
http://www.sharelynx.com/chartstemp/gata/GATA-WP.phpLater this week GATA will disseminate how to order our Gold Rush 21 DVD, which will include our 24 minute highlight film and 8 hours of presentations by the speakers at the Dawson City conference. The DVD premiere showing will be at Joe Martin’s gold conference in Vancouver on January 22 (see conference agenda posted at Kitco). In my opinion the more the DVD is distributed around the world, the faster the gold price will go up. That was GATA’s intention and reason for holding GR 21 in the first place. More on this soon.

http://www.goldrush21.com/small.html
(Quick Time 7 required, which can be downloaded free and in minutes)

GATA's "Enveloping Horn" strategy to defeat The Gold Cartel (the African drums are pounding with ever growing vibrance) is on the march in "Shaka-like" fashion. GATA is counting on you to defeat these bums!

Gold for February delivery closed at $518.90 an ounce on the New York Mercantile Exchange, up $1.40 for the session. The front-month contract on Dec. 30, 2004 closed at $438.40 -- that equates to a year-on-year gain of 18%, or $80.50.

Not bad, and still the bullion dealers on Planet Wall Street are not bullish. Gold goes up year after year and they just look on both cluelessly and disingenuously.

CARTEL CAPITULATION WATCH

From www.PrudentBear.com:

Broad money supply (M3) surged $35.7 billion (week of December 19) to a record $10.184 Trillion. Over the past 31 weeks, M3 has inflated $558 billion, or 9.7% annualized. Year-to-date, M3 has expanded at a 7.6% rate, with M3-less Money Funds growing at an 8.5% pace. For the week, Currency increased $2.1 billion. Demand & Checkable Deposits gained $3.8 billion. Savings Deposits rose $12.3 billion. Small Denominated Deposits increased $1.9 billion. Retail Money Fund deposits added $0.2 billion, and Institutional Money Fund deposits increased $1.2 billion. Large Denominated Deposits slipped $3.7 billion. Year-to-date, Large Deposits are up $264 billion, or 25.0% annualized. For the week, Repurchase Agreements jumped $17.5 billion, while Eurodollar deposits added $0.5 billion.

Bank Credit jumped $26.8 billion last week to a record $7.494 Trillion. Year-to-date (51 weeks), Bank Credit has inflated $729.7 billion, or 11.0% annualized. Securities Credit added $2.6 billion during the week, with a year-to-date gain of $131.3 billion (7.0% ann.). Loans & Leases have expanded at a 12.9% pace during 2005, with Commercial & Industrial (C&I) Loans up an annualized 15.3%. For the week, C&I loans rose $5.9 billion, and Real Estate loans added $1.0 billion. Real Estate loans have expanded at a 14.4% rate during the first 51 weeks of 2005 to $2.899 Trillion. For the week, Consumer loans slipped $3.3 billion, while Securities loans jumped $18.7 billion. Other loans declined $1.8 billion.

http://www.prudentbear.com/creditbubblebulletin.asp-END-

A heads-up:

Puppet State Brought Down By Price Controls?

by Llewellyn H. Rockwell, Jr.http://www.lewrockwell.com/rockwell/puppet-state.html-END-

Gold demand in China is expected to increase 40% this year.

Shanghai Gold Exchange doing brisk business

31/12/2005 16:38
A total of 906.42 tons of gold was traded at the Shanghai Gold Exchange this year, with the transactions totaling 107 billion yuan (about US$13.20 billion), posing year-on-year rises of 36 percent and 46.4 percent, respectively.
In the meantime, the exchange traded 40.81 tons of platinum, with the volume of business amounting to close to 10 billion yuan (US$1.25 billion), up 46.9 percent and 53.6 percent, respectively.
Affected by increased prices for precious metals on the world market, the trading of precious metals at the Shanghai Gold Market also responded in a basic positive way.
Information from the market said the price of gold shot from 114.76 yuan (about US$14.34) per gram in the beginning of this year to 133.39 yuan (some US$16.67) per gram by the end of the year.
And the price of platinum also rose from 232.92 yuan (US$29.12) per gram in early this year to 257.86 yuan (US$32.23) per gram now. The weighted price is 10.53 yuan (US$1.32) higher than that of last year per gram.

-END-

This is what The Gold Cartel has wrought by artificially suppressing the price of gold for so many years. The uninformed out there on Planet Wall Street, and many in the mainstream gold world, think $500 gold is a big deal. It is Mickey Mouse. And it is a Mickey Mouse price for many gold producers in business to produce profits for shareholders. A sign of the times:

Fiji goldmine lays off 374 as costs rise

31 December 2005 By MICHAEL FIELD

Fiji's largest private sector employer, Emperor Gold Mining, cut its work force by 374 yesterday, in a move management said was necessary to contain sharply increasing costs.

The mine at Vatukoula, on the northern side of the main island of Viti Levu, produces about 145,000 ounces of gold a year in a labour-intensive deep-shaft operation. It employs about 2100 people.

Emperor general manager Sean O'Connor said it had not been an easy decision for Emperor to make.

"Despite a rising gold price, rises in the costs of other inputs, especially oil, which comprises nearly 30 per cent of the cost base at the mine, has meant that we have to become more efficient."

Vatukoula has been operating since 1933 and is thought to have a large body of ore, which is deep and narrow. Heat and severe water flows have hit the mine's productivity, raising the cost of mining.

Fiji Great Council of Chiefs chairman Ovini Bokini said many families would be affected by the sackings.

"It will be a very bleak future for our people," he said.

-END-

If it were not for The Gold Cartel, there would have been a gold rush in Alaska for many years now and it would have been an enormous boon to their economy already:

http://www.news-miner.com/Stories/0,1413,113~7244~3187541,00.htmlBill,
Alaska is looking for a new gold rush
Cheers
Adrian

A Merry Christmas and a Happy New year to you Bill.

One question regarding silver:

I have received some information that the billionare Paul Allen has recently taken av very big position in silver and rumour has it that there should be a large rally in february (maybe because he will announce that he will take delivery of silver)?

Do you know anything about this Bill?

The very best to you for 2006.

Lars Lindgren
RITAMM A/S
lars_l@ritamm.no

From India to Café members:

Hi Bill, Chris, Mike (the Café and GATA webmaster).

There is great news : The Central Government Securities and Exchange Board India has given permission for Gold ETF tradeable electronically and the entry barrier is just USD 2.50 only.

Yes Indian Housewives do lust for gold but majority of Indians do not consider gold as a pure investment. In fact gold is used primarily as a store of value and to evade income tax and primarily to show off in daughters wedding trusseau.

Mutual funds have a USD 40 billion corpus and do you know that Indian millionaires can buy the entire worlds 4500 tonne availiability at USD 500 per ounce. Most indians are not aware of the 1500 tonne central bank criminal scam that you guys have brilliantly exposed.

Indians dont know (except govt and HNIs)that The US suffers from State/Federal/Current account deficits or the pension/medicare time bombs.

Indian govt. sitting on a pile of USD 144 billion forex reserves dont want to invest in US T-bills ( already invested USD 74 billion) and so wants citizens to buy gold and earn some interest as 100% gold backed certificates with electronic trading similar to goldmoney and e-gold now approved. Stock and commodity exchanges trade USD 8 billion a day !!!

No gold or silver can be exported from India since 2003.There is a 100% embargo so no chance of gold or silver scrap can bail out central banks or the criminal SUA silver.

This is a great victory for Goldbugs and Silverbulls.( I am a SILVER FANATIC).

Look forward to $20,000 ounce gold and $4000 silver by 2020 !!!

You guys are the finest and the most honest people on the planet.

You will be proven correct and you are the nightmare to the fiat issuing Central banks.

Thanks
Srinjay Sengupta BS (Mech.Engg) CMA MBA

More from Srinjay:

The Australian subsidiary Deccan Goldmines in India accepts GATA arguments and as a listed company carries weight.

see their website link below

http://www.deccangoldmines.com/gold_future.aspAccording to GATA (Gold Anti Trust Action Committee), about 15000 tonnes of gold has been loaned by the Central banks to the Bullion banks for which they paid about 1% per annum. The Bullion banks then sold the "loaned" gold on the open market and invested the proceeds at 6-7% per annum. It was a sweet deal until the gold prices started to move upwards. Now the bullion banks that are in debt to the Central banks have to buy it back to repay the gold borrowed from the banks. It is therefore in their interest to keep the prices down and in this respect GATA claims that it has collected mountains of evidence to suggest that each time gold rallies, the Central banks are selling more government gold to cap its price. If GATA is right, the short positions of 15000 tonnes or more have the capacity to propel the price of gold much higher than it is today. (Note: A landmark legal case is before a US federal judge alleging a variety of collusive, manipulative activities in the gold global markets. You can track the developments on various gold sites- Check our links section for details)

-END-

Srinjay

Too much gold bullishness out there? Hardly. You have heard MIDAS rant over and over again (as in this commentary above) how Planet Wall Street conspires to denigrate gold … for clandestine reasons. Can all of these brains on Planet Wall Street be this stupid? Adrian points out yet another example of what I keep referring to. Planet Wall Street and mainstream gold analysts are the only ones in the world who could be so highly paid year after year TO GET IT WRONG!

http://www.fortwayne.com/mld/journalgazette/business/13526699.htmBill,
I almost thought this might be an article with positive sentiment for gold. Nope. When you get to the end the author says

QUOTE-

With such factors bolstering the bullion, it’s not surprising that many investors are considering joining this gold rush. But it might not be the right move for everyone now.

Prices are already ahead of the estimates coming from many economists and Wall Street analysts. For instance, CSFB increased its fourth-quarter gold price assumption last week from $450 an ounce to $486 and its forecasts are for gold to be priced between $430 and $469 per ounce in 2006.

END

There is no froth in this market yet!...but there certainly is humor to be found in the commentary if you know the real facts!!!
Cheers
Adrian

Subject: J Taylor's Gold & Technolgy Stocks Weekly Hotline - December 31, 2005

GOLD

The gold bull market is, I believe just beginning. Or perhaps it is more accurate to say that the exciting part of the bull market-the part that starts to get the masses' attention is just beginning. Indeed as I said on RobTv, the gold market should be correcting, but it is refusing to do so.

I think Robert McEwen's remarks below may shed some light on why the gold market is refusing to "correct" and is instead taking off like a rocket as pictured in the long-term moving average chart on your left. The average price of gold for December 2005 was $509.92. The 20-month average is now $435.02 and the 40-month average is $397.59. In other words, the rate of increase is rising dramatically.

This is indeed a powerful bull market for gold and for those of us who have followed the excellent work of Bill Murphy and his supporters at GATA
(http://www.gata.org/) this should be no surprise. Bill has been predicting this for ages because he rightfully pointed out that the central banks were manipulating gold and in that way keeping it from voicing concerns of rising monetary liquidity that led to the stock market and then the housing market bubbles.

If only the authorities had respected the language of the markets and allowed gold to rise and then respected what gold was telling them-that the central banks of the world were creating too much money and too much debt (which is the same thing in a fiat currency system), we would not be facing the awful predicament we are facing today with huge and un-payable debts.Gold would have risen much earlier and/or the authorities would have abandoned their immoral monetary creation. This results in a wealth reallocate form those who create it to those in charge of printing money like our politicians, Wall Street bankers, and those in close proximity to Wall Street's monetary feeding troughs.

How many times during the 90's stock bull market did we hear Larry Kudlow say, "See gold is going down so its time for Greenspan to loosen the money spigots." But what Kudlow didn't know or perhaps more accurately did not want to know (because he and others snubbed their noses at Bill Murphy and GATA) was that gold was going down not because of natural market forces but because it was being manipulated to lower levels by massive central bank dishording, only part of which was made public. Now, gold is snapping back with a vengeance. If anyone deserves credit for saying "I told you so!", it is Bill Murphy and his crew of very bright, astute gold market students. I think of James Turk, Chris Powell, Reginald Howe, Robert Landis and many more I can't remember off hand. If you had listened to these guys, and bought gold when it was below $300 you would be in a very good position today. Yet, I believe the real move is only just beginning.

Don't think for a minute that gold is going up because the establishment wants it to. To the contrary, the money printing establishment-those who have the license to steal by printing money (that includes the politicians and bankers and those close to the Wall Street bankers feeding trough) have held rising gold prices off as long as they could. A falling gold price meant they could delude themselves into thinking everything was okay. That way they could party on with one bubble after another, which made Wall Street rich at the expense of common ordinary hardworking Americans. To give you a sense of how much money was printed, M-3 during Greenspan's reign rose from about 3.5 trillion to well over $10.2 trillion as of this weekend.

The trading patterns have distinctly changed from the days when governments were announcing almost monthly new plans to sell more of their gold. Those announcements are not to be heard these days. Why? Why are our policy making thieves no longer able to suppress gold? I don't pretend to have an answer to that question, but the following remarks by Dr. Robert McHugh suggest something big, way beyond their control may be in the works…

-END-

Adrian with some goodies for us gold bulls:

Bill,
As mentioned in my commentary of Dec 30 everything is lining up for an explosive move in the HUI. I have just discovered another driver that supports this notion. What, of course, drives the gold mining shares is profitability which in turn is driven by the gold price less the cost of mining. Here is the average gold price by quarter for 2005

Q1 $427
Q2 $427
Q3 $439
Q4 $485

Nearly all of the gold price rise of 2005 is reflected in the last three months, showing an average price increase of $49/oz for the last quarter. Although miners have seen rising costs the cost increases would be small compared to a price of gold increase of $49/oz. This bodes very well for the soon to be announced financial results of the miners. With the price of gold headed higher the outlook should be even rosier. The expectation of good reports and good projections is likely to attract institutional buying in early January.

To recap:

• The build up of call option positions for Jan 2006 suggests a large HUI rise is expected
• The HUI has broken out of a two year consolidation box formation and has reached an all time high
• Gold has broken above $500 and sustained the level for more time than in the last 24 years
• The gold uptrend of the last 4 years is a better developed trend than any of the last 35 years
• Open interest in gold futures has shown the first contraction on rising gold price in this bull market to date
• Gold has broken out against all major currencies
• Gold has decoupled from the dollar
• Despite superb gold performance sentiment among gold newsletter writers has declined dramatically
• A large average gold price increase in Q4 2005 of $49/oz portends good financial results for unhedged miners

Roll on 2006!
Cheers
Adrian

Gold, silver and the shares remain THE historic investment opportunity of a lifetime!

GATA BE IN IT TO WIN IT!