Chuck's worried.

The press doesn't like what it sees at $1000.

MIDAS GOLD PRICE REACTIONS

It took a mix of $1000 gold, the media's reaction to it, and a very fallow day to compose this
quickly forgettable piece. As serious as the world is at this point, it is still difficult not to see
the absurd in what is unfolding.

Now that gold has finally pierced through four figures I had expected to find some
repentance and mea culpa by the media that has persistently resisted and even mocked the
gold bugs over the past 8 years or so. But if this weekend's press is an indication, we might
need to raise the price to $5000 before the media finally heads to the confession booth. But
curiously, to me, that's great news. As we know by now, the less company we keep
especially from the mainstream, the better.

To show you what I mean by the typical reaction, allow met me to roll out three of these
penetrating insights into gold that I found this Saturday. And if the media is puzzled by
why they have lost almost all credibility and readership, according to the latest Pew
Research survey, then they should read these articles.
http://www.cbsnews.com/stories/2009/09/14/business/main5309240.shtml

BARRON'S. This weekend's featured article in Barron’s by a Ms. Jacqueline Doherty

(Although I am very suspicious that this might be merely a nom de plume of Jon Nadler,
the Scarlet Pimpernel of the gold world) who concludes prophetically that "after a likely
pullback of 10-20%, or $100 or $200 in the price, it is likely that gold will rise some more...
Consequently, investors should consider allocating 5% to 10% of their portfolios to gold,
buying advantageously when prices dip." Wow! That's why they charge about $5 for a thin
issue and why Barron’s felt they should make this so timely. This is not a hemming or
hawing advice but an unhedged clarion call to action. It is likely to go down, but it is also
likely to go up. That’s deep!

Now that I have this clear prediction, I wonder, what should I do if I am a reader. "' Should
I scale down starting at about $825 or really try to finesse it, at say, $805.'’ Maybe I can
locate Ms. Doherty, or if it is, indeed, Mr. Nadler, and get the precise price I should enter.
But I think Jon is still looking for $600 not $800, so there must be a real Ms. Doherty. Gold
is so confusing. No wonder, Americans prefer to sell it or buy an overpriced house or
Citigroup with their clunker money.

But then if gold goes back to $1000 and along with it, a neat 25% profit, gold should be
grossly overbought, and once again likely to slide back to $800, and the pattern, like
Sisyphus, might repeat indefinitely. But at that point Barrons should have another
crackerjack insight into the mysterious yellow metal. I'll alert you, not if, but WHEN her or
his predictions come to pass.
NEXT FROM KITCO NEWS. " IMF in mass selloff." Cortlan Bennett, Business Editor,
Perth Now. The highlighting is mine. September 19, 2009 06:00pm

"The International Monetary Fund will sell 403.3 tonnes of its gold reserves, worth an
estimated $A15 billion, to provide loans to poor countries and shore up its finances.
While the fund's executive board said it decided on Friday to sell its stocks in a way that would
not disrupt commodity markets, gold prices are expected to be hit hard.

Perth-based Stock Analysis author Peter Strachan agreed.

``When it was announced, (the gold price) went down about $US5,' he said. ("See what
happens. $5 whole dollars, the price of a Barron’s issue and a couple of hours parking at a
New York City meter. Wait until the day they dump it. Take that you arrogant, filthy bugs.")

`I think it will be under pressure and the Chinese will probably be buying it on the back foot.
``We might see it go down $US20-$30, but I think ultimately the Chinese will be looking at
this as a great opportunity to get a big chunk of it.'

MY REACTIONS--First, "IMF In Mass Selloff." A gripping headline, although me thinks

that he meant mass 'selling' not 'selloff.' But probably his anti-gold subconscious was
programmed to think 'selloff, ' not selling, since he has used the word so often when
covering gold. And a selloff of $20-30? One man's plunge is another man's manipulation,
and yet another's opportunity. That comes to 2% compared to a rise of 400% since 2001.
Am I too biased or blind to think that this is a very small reaction given the scheme of
things? And is $14 billion a tiny fraction of China’s foreign reserves? Also, the IMF has
only been threatening this sale since Spain invaded the New World, but such a shocking
announcement coming conveniently after a Friday close might cause me a restless and
sleepless weekend, as I wonder if gold might really collapse back to $980. Maybe I'll lighten
up on Monday, or even in Asia before the Comex opens, and then wait anxiously to see how
far down gold will plunge. It might even plummet back to, gulp, $970, and then from there
who knows it might go straight down to $400 and Mr. Prechter would finally be vindicated.
Alas, far too many variables for my mind to sort. Does anyone have Jon’s or Leonard
Kaplan’s email to get my hands held?

JOHN NADLER. Finally this comes from the wickedly clever and witty Jon Nadler in his
must read Kitco column today. Every informed gold person in the world makes Jon's
column his first business of the day. I have even been told that all major gold players have a
red phone that alerts them as soon as his column appears at the top of the Kitco editorials.
He is a peerless mover and shaker, and in my opinion, a living legend that grows by the
hour. Today, without any personal agenda whatever he quotes two famous gold seers,
Reuters' Jan Harvey and Veronica Brown (again these might just be some more aliases of
Mr. Nadler) who chime in on 'some of the head-scratching issues the 'professionals' have
alluded to recently:' It is an extensive piece, but crammed with wisdom and information
that might even convert you into a head-scratcher. I have highlighted some of the more
select cogent thoughts within this most penetrating piece. It wouldn't at all surprised me if
it makes you want to switch all of your precious metals' investments into AIG or Fannie
Mae or even Bear Stearns or Lehman (whoops, my mistake) on the opening Monday.
(Again, my highlighting.)

"The stars have aligned for gold prices, leaving them just a short hop from record highs,
but as bullion bugs celebrate, the rally appears to have flaws. Prices have been swept along
to 18-month highs at $1,023.85 -- opening the door to record levels at $1,030.80 -- on a wave
of dollar weakness, inflation concerns and technical momentum. But in the rush, a few
issues do not sit easily with the bullish show, including ultra-stretched long speculative
positions on the New York futures market, tame physical investment and little movement of
gold in non-dollar terms.
"I'm not bearish gold, but this has gone too far too fast. I don't think that all the
ingredients are in place for this to be a sustainable rally," said John Reade, metals
strategist at UBS in London. On the face of it, the case for investing in gold looks
compelling on a number of fronts on a longer-term basis. The dollar is seen weakening
further, making dollar-denominated gold cheaper for non-U.S. investors and heightening
its appeal as an alternative asset. Europe's leading central banks have agreed to a third
pact to limit sales of the metal, while China already has raised its stockpile by some 75%.
Those scrambling to get in front of potential inflation, predicted by many as leading
economies seek to untangle themselves from stimulus spending and near-zero interest rates,
have also flocked to the shiny stuff as a hedge. Most of the run higher has been led by
major flows into the U.S. COMEX gold futures market, with trading investors and
speculators vastly increasing long positions, leaving the price vulnerable to rapid and sharp
falls. The latest weekly Commitments of Traders report published by the Commodity
Futures Trading Commission showed net long positions had widened to a massive 224,676
as of Sept. 8 compared with 184,501 a week earlier.
Positioning looks set to extend more, but the longer it gets, the bigger the risk. "Everybody
is saying the market is too long, but no-one wants to sell," said Ronald Leung, director of
Lee Cheong Gold Dealers in Hong Kong." There's too much money in the world as central
banks take easy policy and as funds push up the market with the money. They see (the)
gold market as easy to manipulate...like a casino."
But flows into exchange traded funds, the beneficiary of gold buying earlier in the year,
have not kept pace with the latest price surge, and physical demand from the jewellery
sector has gone cold. Inflows into gold-backed ETFs have picked up a little after plateauing
over the summer months, but remain well down on the first quarter's record levels. On the
currency front, the dollar has fallen to one-year lows against a basket of major currencies,
while the euro looks set to hit $1.50.
As a function of dollar weakness with an inverse correlation, gold is pulsing higher as the
dollar falls, but that does not equal optimum conditions for the metal, some say. "This is
not a bull market for gold, it's a bear market for paper currencies, led by the dollar," said
Sean Corrigan, chief investment officer at Diapason Commodities Management in
Switzerland. A look at non-dollar denominated gold also shows an unfamiliar pattern as the
current rally is not being replicated. Sterling-priced gold, for instance, is only at its highest
since April, while bullion in commodity currency the Australian dollar is struggling to
revisit recent two-month highs. The other missing link to the current rally is fear, gold's
usual cheerleader when prices are surging.
"There is no real fear, which would be supportive for gold in the medium term," said
Eugen Weinberg, commodities strategist at Commerzbank. The market is not concerned
any more about the economy or about the health of the financial system, and I think this
will not be sustainable." Gold last got through the psychological $1,000 barrier and hit a
record high in March 2008 -- coinciding with the collapse of Bear Stearns and subsequent
distressed sale to JPMorgan.
Mike Lenhoff, chief strategist at Brewin Dolphin, looking back at the financial crisis, notes
how each time gold raced up in crisis mode, it quickly sold off again. "I don't think gold
bullion is going much beyond where it has got to already. It had its chance to fly with the
mother of all financial upheavals, and it didn't."

MY REACTION. "If I wasn't convinced by the first two articles, this did it. I am going to
take immediate action and plunder my wife's jewelry box and her dresser drawers, grab
every single gold related piece and ship it all off to Money-For-Gold where I can get at least
50% for their gold content. That seems like a fair price since the company needs to make
some profit. And who knows? Gold might be under $1000 by the close tomorrow, and my
46" HDTV is beginning to look mighty puny against the new 72" models. And they are on
sale for under $4000, just about what I would get at 50% of the value of her jewelry, And at
least, I'll possess something of real value."

Don't these articles just continue to reinforce the bizarre and absurd idiosyncrasies of this
gold market. No wonder that most of us are paranoid and continually on edge even as gold
has climbed 400%, and during every single year this century. Just as a quick reprise, here
is what we have had to battle against over the last 8 years or more. 1) The constant threat
of central bank dumping. 2) The constant threat of IMF selling 3) The fear of the
commercials capping the price 4) the historic liquidity squeeze last year 5) The constant
fear of a strong dollar rally 6) A slow down in world jewelry sales 7) The huge scrap jewelry
sales and 7) the daily manipulation by the world monetary authorities and anyone else who
has a vested interest to discourage gold buying. And finally, we have the fifth columnists
that masquerade as gold 'advisors' but mainly try to scare you that a top is upon us, and
you better get out before you lose everything. I call that subscription by fear.

But take a moment and think about this; 1. Have all of these threats made a difference to
the trend? 2. Is it logical that it will make any difference from here on since the
fundamentals have only gotten more and more favorable?

What am I getting at? Just this. Here we are on September 20, 2009, the price of gold is
$1000, the world economies have just rammed trillions of dollars more of worthless paper
into a failing world economy, and yet the system is more rotten and corrupt than ever. This
is the scenario that most true gold people have anticipated for a very long time, and now it
is upon us. The odds that this drama is going to end or reverse are so remote that the Las
Vegas oddsmakers would probably not book a bet on it happening. We are lifting off in a
historic parabolic pattern (look again at the charts) When it ends and where it reaches is
pure speculation, but it won't be soon and it won't be anywhere near the current price.

Just remember that you understand the value and the future of gold. As we have found out,
we are a lonely minority, but we don't need a validation by the mainstream who have never
or will never understand gold or the company of supposedly renowned people. As I always
point out, it is like faith in Jesus, you either see him or you don't.

You don't need Bob Prechter, Warren Buffett (not Jimmy), Alan Greenspan, Jon Nadler,
Leonard Kaplan, Jim Cramer, Larry King, Abbe Joseph Cohen, Larry Kudlow, Oprah,
Barack, Paula Abdul, Jimmy Carter, Bono, Tom Cruise or finally, a front page feature
article in the NY Times to assure you that they are in the gold camp. When that happens it
will be time to sell and retire to a safe and hidden location.

Please relax, the $1000 level is just another pit stop on a very long journey. There are going
to be many dramatic episodes on the way, but the ultimate destination is still far, far away.

STILL L OOKING PRETTY GO OD!!

 Written by Chuck Cohen

Contributor to

WWW.LemetropoleCafe.com

Submitted by Sovpat 9-21-2009