We have been through a rough go, thanks to The Gold Cartel, and all of us can use a boost. Late today I received this email which confirms so much brought your way in this commentary over the past weeks. Yes, it confirms US gold has been mobilized and used to suppress the price, which is one major feather in GATA's cap. Most important though, it tells us what the real gold story is and just how explosive the situation. It won't take much for some event, or some major player, to light a gold/silver tinderbox ... leading to a roaring price bonfire which will roast The Gold Cartel. Here it is:

"A refiner I spoke to today in Dubai has seen Fort Knox bullion bars come through his shop. They and other refiners in this major gold trading center are very short of metal. The premium above spot is $9/0z, the highest ever. Gold is in backwardation so a rational strategy would be to buy December Comex futures and take delivery to book that immediate profit. Comex shorts stand at record levels on a gross basis of 8.1mm ounces while spec longs are at the lowest level in 5 years. Comex warehouse stocks are well below the level that could satisfy demand if only some of the longs took delivery instead of rolling contracts. Physical demand from India and other Mid and Far East markets is unprecedented at these depressed prices. Comex short interest is naked, or otherwise dealers in physical gold would be seeing supply. By the way, it is beyond me that the gold producing industry has not blitzed the financial media with a picture of bullion captioned with "no counterparty risk" or something of that nature. The industry’s failure to seize the moment is profoundly disappointing. Everyone I meet here is huddled in short term treasuries, the riskiest asset class of all. Nevertheless, it seems that the ingredients for a short squeeze are in place. Macroeconomic considerations await the chain of monetary creation and the sprocket of financial speculation to connect."