(OroyFinanzas.com) – Cheuvreux, the equity brokerage house of CreditAgricole, the huge French bank, today distributed a 56-page report that completely endorses in detailthe findings of the Gold Anti-Trust Action Committee that the price of gold has been surreptitiously suppressed by Western central banks and that those banks do not have the gold they claim to have.

The report, written by Cheuvreux’s mining sector analyst in London, Paul Mylchreest, is titled “Remonetization of Gold: Start Hoarding.” Itrepeatedly cites GATA by name and foresees an”unprecedented” rise in the gold price, possiblyaccompanied by a spike toas much as $2,000.

The report’s executive summary says:

“We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz and see the possibility of a spike to USD2,000, or higher. Covert selling (via central bank lending) has artificially depressed the price for a decade.

“Central banks have 10,000-15,000 tonnes of gold less than their officially reported reserves of 31,000.This gold has been lent to bullion banks and their counter parties and has already been sold for jewelry, etc. Non-gold producers account for most and may be unable to cover shorts without causing a spike in the gold price.

“There is a supply deficit in the gold market of around1,300 tonnes per year before any central bank selling and perhaps 700 tonnes per year after ‘official’ sales but before covert selling. This compares with world goldmine output of only 2,500 tonnes per year. Some central banks, notably Russia, are starting to buy gold.

“Gold acts as an early warning of potential crisis such rising inflationary/deflationary pressures and general confidence in paper currency, especially the U.S. dollar. A strongly rising gold price could have severe consequences for U.S. monetary policy and the U.S.dollar. History suggests that gold always wins against an inflating paper currency (that is, one subject to excessive supply growth).”

“Gold and gold mining stocks are poised for an unprecedented rise in prices and profile. Investors inUK/European equities need to assess the implications for their portfolios. …”

The Cheuvreux/Credit Agricole report details GATA’sfindings in Chapter IV, “Analysis of the Gold Market,”and concurs in them as “broadly correct.”

No financial house in Europe could be more part of the establishment than Credit Agricole, and now its endorsement of GATA is circulating among other big financial houses in Europe and around the world.

This evokes what Adam Fleming, former chairman of Harmony Gold, now chairman of Wits Gold, said at GATA’s Gold Rush 21 conference in Dawson City,Yukon Territory, Canada, last August, just hours before the current sharp rally in gold began: that just a little investment demand could take the central banks out of their gold “in the blink of an eye.”

A LITTLE investment demand? Credit Agricole’s brokerage house has just declared: Start hoarding!

Gold Rush 21 was truly historic and decisive; it gathered the world’s top experts on gold to spell out,explain, and publicize the gold price suppression scheme, and the conference issued the Dawson Declaration, an appeal for free markets in the precious metals as a matter of basic human rights.

As for gold itself, you can get some from the coin and bullion dealers listed at the end of this dispatch. But as the Cheuvreux report gets around, there may not be much left.

Chris Powell, Secretary/Treasurer

Source: Gold Anti-Trust Action Committee Inc.

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