Sinclair and Schultz on why the gold cartel can''t stop a bull market


7:39p ET Tuesday, September 3, 2002

Dear Friend of GATA and Gold:

Congratulations to our friend I.M. Vronsky of, who today found himself
and gold suddenly mainstream, as he was
quoted in a major dispatch from, appended here.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Metals issues, gold prices inch up

By Myra P. Saefong
Tuesday, Sept. 3, 2002

Shares of major metals stocks closed higher
Tuesday as a triple-digit decline in the
broader equity market prompted investors to
seek refuge in the precious metals sector.

Gold futures prices also climbed to a more
than two-week high.

"With economic uncertainties and U.S.-Iraq
war speculation at the forefront, I think
gold will continue to see pockets of 'safe
haven' buying," James Moore of in London said in a note
to clients.

The Dow tumbled by more than 300 points
Tuesday as manufacturing and layoff data
sparked worries of a weakening economy.

The weakness in the broader market helped
pull precious metals stocks higher. The
Philadelphia Gold & Silver Index rose 1.9
percent to close at 70.77, the CBOE Gold
Index climbed by 1.8 percent to 57.81, and
the Amex Gold Bugs Index added 1.2 percent to

Among gold producers, shares of Newmont
Mining rose 58 cents to close at $29.07 and
Barrick Gold added 34 to $16.41. Placer Dome
Gold tacked on 49 cents to $10.46 and Harmony
Gold climbed 35 cents to $14.60.

Shares of Freeport-McMoRan Copper & Gold fell
by $1.69, or 10.3 percent, to $14.70,
however, after Goldman Sachs downgraded the
company Tuesday to "market performer" from
the brokerage firm's recommended list.

The brokerage based its downgrade on
heightened political risk after a shooting
incident involving contract employees in

Elsewhere, Pan American Silver fell 13 cents
to $6.96 and Apex Silver slipped 4 cents to

Over on the futures market, gold for December
delivery rose $1.10 to close at $315 an ounce
after rising as high as $315.90 -- its
highest level since Aug. 16.

"I believe gold is finally at the right place
and time in economic, financial, and
geopolitical history," said I.M. Vronsky,
editor-in-chief of, adding
that prices for gold could surpass $400 an
ounce by the year's end.

Brokerage house Spectrum Commodities said
demand for the yellow metal is greatest going
into the fourth quarter, as "gift-giving
peaks beginning with Indian harvest and
wedding festivals in autumn and carrying
through U.S. religious holidays and Chinese
new year."

Following gold higher, December silver tacked
on 1.7 cents to trade at $4.485 an ounce.

Among other metals, October platinum fell
$21.20 to stand at $544.60 an ounce and
September palladium declined $3.85 to stand
at $323.95 an ounce. September copper fell
1.25 cents to 67.45 cents a pound.

The weakness in the stock market pointed to a
likely dip in industrial demand for platinum,
palladium, and copper.

Shares of Stillwater Mining, a major producer
of palladium and platinum, shed 25 cents to

As of late Friday gold inventories at Comex
rose by 83,200 to 1.83 million ounces. Comex
silver inventories stood at 108.09 million
ounces, unchanged as of late Friday, and
Comex copper stocks were up 150 short tons at