From a fellow Cafe member...
>
> You and others remind us that the Cartel has to be running out of
> ammunition in their suppression tactics. Perhaps it is time for a review
> of just what you mean "running out of ammunition" in your daily
> dispatch. I know I get confused and candidly I am wondering with all the
> manipulation if the Cartel is going to be able to suppress the PM prices
> for the next 3-5-10 years regardless of whether they have the gold or not.
>
> This is no criticism of your work. Le Metropole Cafe is a must daily
> read. Thank you.
> Frank
>
> A good question. The answer...
>
> *The analysis work of three GATA consultants (Reg Howe, Frank Veneroso,
> and James Turk), using three different methodologies, revealed years ago
> the central banks had expended far more of their gold than commonly known.
>
> *Years ago we pegged that number at 10,000 to 15,000 tonnes less than
> the commonly accepted number of 30,000 to 32,000 tonnes of central bank
> reserves.
>
> *The annual supply/demand deficit is greater than 1,000 tonnes so that
> number should have grown since then. However, it is important to keep in
> mind the hedgers have returned nearly 4,000 tonnes to the bullion
> banks/central banks by reducing their forward sales (hedges). Therefore,
> the total tonnage at the central banks has probably not decreased that
> much of late.
>
> *Because of the financial chaos in the world, more and more central
> banks don't want to be seen parting with whatever gold they have left.
> It is not fashionable for the sheeples to sell. Bankers are risk averse
> types. Selling gold these days LOOKS risky.
>
> Thus, the ECB banks are selling 1 to 2 tonnes of gold per week, instead
> of the 9.7 tonnes they could sell under The Washington Agreement.
>
> *Some central banks, like China and Russia, have turned BUYERS.
>
> *At the GATA African Gold Summit in Durban, South Africa on May 10,
> 2001, Frank Veneroso forecasted that in 7 to 10 years the central banks
> would run out of available gold to feed into the physical market. We are
> in that zone now.
>
> *Yes, a certain amount of tonnage can be found here and there, which is
> probably why Bernanke is in a panic about the Fed being audited. Still,
> we are getting closer and closer to when The Gold Cartel is going to be
> forced to give up the ghost and off we go ... BIG TIME.