The US CFTC hearing on COMEX position limits over the past couple of weeks seems to have set a cat among the pigeons. No idea how it will all shake down but it is satisfying to watch the authorities squirm if nothing else.
A series of posts from Zero Hedge linkable from the latest one here, provides a good run down of what is going on.
The following (tongue-in-cheek) press release from GATA is timely and sums up the deeply patronising, obsessively secretive, smoke and mirrors world of the paper-chase that characterises what we are assured (with straight, earnest faces) is a genuine honest free market in gold.
The Gold Anti-Trust Action Committee today offered to sell 191.3 tonnes of gold, tonnage equal to that remaining to be sold by the International Monetary Fund, on the same terms offered by the IMF except $100 per ounce below the London PM gold fix price on the day prior to purchase.
GATA Chairman Bill Murphy said his organization could provide a better price for the metal because it recently had received a gift of expensive hundred-year-old certificate paper originally intended for use as Chinese railroad bonds and because, in selling the gold, the organization, unlike the IMF, would not employ a large staff of publicists to tout the sale to news media throughout the world every day for months in advance.
Except for the discounted price, GATA's gold sale terms will match the IMF's:
- After selling the gold, GATA will present the buyers with certificates of ownership while continuing to store the gold using vaults in the United States, Britain, France, or India whose locations are known only to GATA.
- The gold will be audited by auditors chosen by GATA whose reports will be available only to GATA.
- The gold may be resold through GATA as long as it does not leave GATA's vaults.
- GATA will use some of the gold sale proceeds to assist developing or financially troubled nations but exactly how much is used for that purpose and what's done with the remainder will be nobody's business.
- GATA's sales will be structured to minimize any effect on the world gold market and to this end they will be announced only this once.
- For an additional $250 GATA will have a buyer's gold certificate tastefully framed.
- Buyers of gold in the amount of $100 million or more will be invited to GATA's annual Christmas party.
Purchasers should send certified checks payable to GATA in care of your secretary/treasurer at the address below.