In his report, veneroso comes to the conclusion that the sale of gold by central banks has artificially suppressed the total volume of demand for gold by. How is what is happening today different than the controversy frank veneroso outlined in the 1998 gold book annual. The wgc resisted all offers of assistance from frank veneroso when he suggested that its figures were significantly understating physical demand. Oct 23, 20 in his now celebrated the 1998 gold book annual, frank veneroso demonstrated the inconsistencies in gfms gold demand data and proceeded to show how they grossly underestimated demand. Gold discussion for investors and market analysts 19980117. A convert, sort of, to the conspiracy camp gold anti. Gold has both private uses depletion uses and service uses and government uses. Veneroso did get it right and made this case repeatedly over the past year and a half and said so in a longrun perspective on asia, which is an appendix to chapter 7 of his 1998. Why you should be aggressively long gold antitrust. Frank veneroso is the managing partner of veneroso associates, which provides global research to institutional investors. The world gold council conducts annual surveys of gold demand for three uses jewelry, bar, and official coin in 27 countries in the world.
A presentation on gold supplydemand, gold derivatives and gold loans by frank a. Neither this hoard nor private transactions in gold played any role in his figures on annual supply and. Gold markets are further manipulated by central banks leasing their gold. Word emerged that ltcm was short approximately 400 tonnes of gold. In his now celebrated the 1998 gold book annual, frank veneroso demonstrated the inconsistencies in gfms gold demand data and proceeded to show how they grossly underestimated demand. An open letter to the world gold council eric sprott. Gold supplydemand, gold derivatives and gold loans by frank. In the gold book annual 1998 we compared growth in the estimates of demands for gold of the wgc and gfms. Veneroso s gold market model indicates that central bank loans.
Though this survey is only partial it clearly points to total global gold demands that are many hundreds of tonnes higher than the so called official statistics provided by gfms. As i explained in the gold book, gold demand had been understated for years by gfms, the official keeper of the global gold statistics, as has been the flow of official sector gold. Gold discussion for investors and market analysts kitco inc. We were introduced to it through the work of frank veneroso, who published an outstanding report on the gold market in 1998 aptly titled, the 1998 gold book annual. The act authorized the esf to use its capital to deal in gold and foreign.
In frank venerosos1998 gold book annual, he concluded that central bank gold leasing had artificially suppressed the. In the german market he acts as a market strategist for the global policy committee of rcm, a global equity management affiliate of the allianz group. Editorials and essays by frank veneroso are available on the gold newsletter for a modest fee. Gold lending and official management of the gold price.
Another look back at martin armstrongs incarceration by rob kirby via gold seek a very short preamble to what follows is this. In the gold book annual we analyze the gold market like you would analyze any commodity market using microeconomics. Regional analysis state topic beige book industrial heartland. When i first got involved in gold, i came to the conclusion, based on frank venerosos book, the gold book annual 1998 jefferson financial, 1998, that. May 1999 marked the conversion of many veteran gold market watchers to the manipulation thesis. The us now needs maybe three, four, or five trillion annually to reflate, in order to work. This resulted in a gross understatement of annual supplies.
A home run for bill in radio interview gold antitrust. Oct 23, 20 it is not the first time that gfms and world gold council statistics have come under pressure from the investment community. Frank veneroso is arguably the foremost mind on gold supply and demand flows. But note this important passage from ferdinand lips book goldwars. Oct 01, 20 it is not the first time that gfms and world gold council statistics have come under pressure from the investment community. Gold supplydemand, gold derivatives and gold loans by. In his now celebrated the 1998 gold book annual, frank veneroso demonstrated the inconsistencies in gfms gold demand data and proceeded to. Its their own vault, its the bank of englands vault, its the new york feds vault. Gold derivatives, gold lending, official management of the. Frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of gold, the central banks really only owned about 18,000 tons, and that they had been supplying. Do you view gold purely as insurance or do you also view gold as currency. Frank venerosos utterances in this regard originated from information fed to him back in the 1990s about gold lending and swapping via central banks and bullion banks by bank of england gold head. This amount cannot be covered in an orderly process.
The tremendous increase in the price of gold over the following years vindicated his conclusions. Nov 26, 2012 we were introduced to it through the work of frank veneroso, who published an outstanding report on the gold market in 1998 aptly titled, the 1998 gold book annual. One of the worlds foremost financial analysts, venerosos clients have included the world bank, the organization of american states, sovereign nations and global money managers. Venerosos gold market model indicates that central bank loans. The gold newsletter stands as the oldest and most respected precious metals and mining stock advisory in the world. Frank veneroso, who wrote the brilliant gold book in 1998, told sprotts john embry and i many years ago that the gold price suppression. Gold derivatives, gold lending, official management of the gold price and the current state of the gold market by frank veneroso. And importantly, it also gives substance to frank venerosos conclusion. World gold council amp gold and precious metals portfolio. In the gold book annual we analyze the gold market like you would analyze. Dear world gold council executives ainslie bullion.
Frank veneroso, author of the industry bible, the gold book annual, and publisher of the gold watch fax service. Dow jones story on gold carry trade cites gata gold anti. We came to this interpretation by looking at the incomes of the countries that the wgc surveys and comparing their aggregate incomes to the aggregate incomes of those countries it does not. The gold bars are part of their respective foreign currency reserves, which include all the usual fiat currencies like the dollar, the pound, the yen and the euro. Eric sprotts open letter to the world gold council. How is what is happening today different than the controversy frank veneroso outlined in the 1998 gold book annual in 1998.
Significantly, londonbased gold fields mineral services ltd. A substantial body of work has been completed by international banking consultant frank veneroso in his book the world gold book annual 1998 and subsequently, which analyzes historical bullion flows from england and has calculate that roughly 10,000 to 15,000 tons of all the worlds official central bank gold reserves of 32,000 tons have been. See frank veneroso, the 1998 gold book annual jefferson financial, 1998, esp. The gold market yellow peril finance and economics the. Aug 06, 2014 gold markets are further manipulated by central banks leasing their gold. Frank venerosos utterances in this regard originated from information fed to him. Veneroso inferred that central bank gold sales had artificially suppressed the full extent of gold demand to the tune of approximately 1,600 tonnes per year in an. The estimations of wellknown gold expert frank veneroso, who published an outstanding report on the gold market in 1998 entitled the 1998 gold book annual.
Eric sprott amp gold and precious metals portfolio. At the time of the investigation the spring of 2010, the price of gold was more than four times higher than the price when the gold auctions took place 1,250 dollars for a troy ounce as opposed to 256296 dollars. From 199699, he worked as an international economics strategist for veneroso associates, which provided macroeconomic strategy to a number of leading institutional investors, and assisted frank veneroso a former advisor to the world bank in the latters work on the gold market, which culminated in the publication of thegold book annual. We use them as described in the classic book technical analysis of. Covering this position would have sent gold soaring, harming the balance sheets of ltcm and other significant gold shorts. Frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of gold, the central banks really only owned about 18,000 tons, and that they had been supplying gold to the market. When i first got involved in gold, i came to the conclusion, based on frank venerosos book, the gold book annual 1998 jefferson financial, 1998, that the gold market was being suppressed by central banks and that that logjam had to break. For example, the highly regarded frank veneroso and robert prechter. Lbma media centre this is a dedicated area of the lbma website devoted to keeping you up to date with the latest news updates, as well as past and present press releases, publications and speeches.
Frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of gold, the central banks really only owned. His 1998 gold book annual made the case that the consensus supply and demand view of the gold market established by gfms ltd. My former associate, frank veneroso, who wrote the 1998 gold book annual came up with an 8,000 tonne number about two years ago. The proceeds from the gold sales were converted into us dollars, euros and yen. Veneroso inferred that central bank gold sales had arti. Nov 20, 20 frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of gold, the central banks really only owned about 18,000 tons, and that they had been supplying gold to the market.
Frank veneroso did foundational work that led to the creation of gata gold antitrust action. What ive done in the meantime is identify that it looks as if theres another 2,000 tpa that have come out of the central banks somehow. Oct 22, 20 it is not the first time that gfms and world gold council statistics come under pressure from the investment community. There is too little gold in the west peak prosperity. Everybody in the financial world has reached the conclusion that over time equity prices are consistent winners and that gold is irrelevant. It is not the first time that gfms and world gold council statistics come under pressure from the investment community. As i explained in the gold book, gold demand had been understated for years by gfms, the official keeper of the. Read, highlight, and take notes, across web, tablet, and phone.
Nov 18, 20 frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of gold, the central banks really only owned about 18,000 tons, and that they had been supplying gold. Why did veneroso associates assume in the gold book annual that the world gold council survey encompassed at the time roughly 80% of only those markets the council surveys and not all markets for gold use. By comparison, the annual per capita american income at that time. Frank veneroso wrote a tremendous book in 1998 suggesting that, instead of having 36,000 tons of. The manipulation of gold is selfevident spdr gold trust. May, 20 the estimations of wellknown gold expert frank veneroso, who published an outstanding report on the gold market in 1998 entitled the 1998 gold book annual, are even more dramatic.
When i first got involved in gold, i came to the conclusion, based on frank venerosos book, the gold book annual 1998 jefferson financial, 1998, that the gold market was being. Jun 06, 2008 frank veneroso is the author of the gold book annual, probably the most comprehensive study and analysis of gold markets available today. Frank veneroso founded veneroso associates in 1995. It is not the first time that gfms and world gold council statistics have come under pressure from the investment community. Gold derivatives, gold lending, official management of the gol. The gold market yellow peril finance and economics.
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