today's analysis comes from bill murphy of gata. i can't stress enough that if you want to protect your wealth, subscribe to his service at www.lemetropolecafe.com

this is only a tiny portion of the information gata provides to subscribers, and they are doing the heavy lifting in the battle against the government's interference in the markets. they recently made a freedom of information act request for information on the status of us gold reserves, and the government withheld 137 pages. gata may have to appeal the decision, and eventually sue the government just to find out if it has the gold bullion it says it has.

bill murphy's analogy of the gold cartel is to compare it to the germans near the end of world war 2. they can win a battle here or there, but they are going to lose the war. so it is with the gold cartel. they smashed $100 off the gold price in the past couple of weeks, but they could not prevent it from going from $250 to $900+ in the past eight years. and as we all know, silver has done even better.

this is from gata:

I spoke to our STALKER source today…

*As most of you know he is a physical dealer in the US and he has had a working relationship with a Swiss dealer since 1979. This dealer says in this 35 years in the business, he has never seen such a physical gold shortage as exists now. This dealer worked for a major Swiss bank for many years, so he KNOWS what he is talking about.

Right now our STALKER source is owed $2,000,000 in physical gold from this dealer in Switzerland. This is just ONE dealer to dealer transaction stuff. When the Swiss dealer is able to sell coins, he is doing so at "the HIGHEST premiums ever."

*Our STALKER’s London dealer is very concerned there is going to be an orchestrated effort to get the dollar up to the 75 area, in order to stave off a dollar collapse. IF, they are able to manipulate the dollar up that much, he fears a further gold debacle.

Something has to give here and it goes back to what MIDAS has brought your way for years. The key to the price of gold in the coming weeks will be whether the physical market is able to overpower The Gold Cartel’s efforts to smash the price. As we have seen of late, the action of the dollar has meant little to the price of gold. It has been all about The Gold Cartel.

Should outside market events (commodity action included) continue the way they have been, there is a VERY good chance The Gold Cartel gang will lose another battle on their way to losing THE GOLD WAR.

Can there be ANY doubt left that gold and silver’s drubbing on Friday was The Gold Cartel and silver price managers? The gold open interest only went down 991 contracts to 433,160. To drop less than 1,000 contracts on a 28 dollar move down is abundant proof there was NEW selling to pummel the price. This corroborates what was sent my way from one of the most respected dealers in the industry, one who was never in full agreement with GATA’s views…