Morning folks,

What do you think of this? No matter what we may think about Goldman, re: the US financial mess, they still have the inside and outside track on the entire market place. I hope this translates into something that will benefit us directly.

Best wishes,

Jerry Francis

------------------------------------...

Date: Mon, 29 Sep 2008 19:57:05 -0500
> From: LePatron@LeMetropoleCafe.com
> To: iveson1066@hotmail.com
> Subject: MIDAS ALERT - GOLDMAN SACHS GOES NET LONG GOLD ON TOCOM
>
>
> Le Metropole Members,
>
> Adrian Douglas has updated us his Goldman Sachs TOCOM
> activity, which will be included in MIDAS, as usual. However,
> this is potentially a momentus event, so I thought it fun
> to get it out there to as many people, and as early, as possible....
>
> GOLDMAN SACHS GOES NET LONG GOLD ON TOCOM
>
> In the September 29 session on the TOCOM Goldman Sachs
> COVERED 13 short contracts and bought 495 long contracts
> to bring their long position to 2,525 contracts AND AS
> A RESULT MAKING THEM NET LONG 28 CONTRACTS!!! The largest
> net short position they held was 52,000 contracts in
> March of 2006.
>
> Below it is shown graphically. The declining net short
> position has been going on for 30 months and I have
> predicted for some time that GS would eventually be
> net long just before the gold price explodes. Well here
> we are! John Reade of UBS poked fun at me for this
> analysis saying that GATA doesn't know what an arbitrage position is. Well, Mr. Reade I do know, and this sure
> as hell isn't one! This chart documents perfectly the
> demise of the gold Cartel. It should be noted that in
> July Goldman Sachs advised its clients to sell gold as
> they said gold was going to $740/oz. Their price prediction turned out to be accurate, however, they did not sell
> gold from their own account during that time; they
> covered their shorts with the aid of charitable donations
> from the clients who followed their advice!
>
> (CHART WILL BE IN MIDAS COMMENTARY TOMORROW)
>
> Here is the estimated liquidated value of the GS
> TOCOM gold position. I no longer have to extrapolate
> this as their net short position has now been eliminated.
> GS has lost approximately 185 MM$ on their TOCOM
> position since I started tracking the data in January
> 2006. One has to wonder why a company as smart as GS
> would tolerate being in an increasingly losing position
> for so long. I think we know the answer. The suppression
> of the gold price facilitated orders of magnitude
> larger profits to be made in other markets.
>
> Now that Goldman Sachs has finally come on to the GATA
> side of the market we can expect a gold price explosion.
> For a long time many in our camp wondered if the Cartel
> was so smart they could continue their manipulation for
> ever. We have seen in the last few weeks that some of
> the key players have stepped on their own land mines.
> The laws of economics can be frustrated but not repealed.
> Cheers
> Adrian
>
>
>
> Member's auto-logon:
> <a href=" Le Metropole Cafe</a>
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>
>
> All the best,
>
> Bill Murphy
> Le Patron
> www.LeMetropoleCafe.com
>