How long will Japan continue to prop up the dollar and cap gold?

10:14p ET Friday, January 30, 2004

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy's quot;Midasquot; commentary tonight
at LeMetropoleCafe.com has important documentation of
what GATA has been telling the world for years: that
Western central banks are running a campaign against
gold. That campaign is always deceitful and usually
surreptitious but it is also sometimes on the public
record, as it is in the excerpts from quot;Midasquot; appended
here.

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

* * *

From quot;Midasquot; commentary for Friday, January 30, 2004

By Bill Murphy
a href=http://www.LeMetropoleCafe.comhttp://www.LeMetropoleCafe.com/a

John Brimelow writes:

quot;Useful light is shed on the week's events by one of Bill
Murphy's readers at LeMetropoleCafe, Mihaly.

quot;He points out that the annual report of Norway's central
bank reveals that 94 percent of the 33.6 tonnes of gold the
bank had at the end of 2002 had already been lent out --
that is, sold. So the Norwegian gold sales just announced
did not add fresh supply to the market. Given the
insignificance of the amount of gold involved here, this was
effectively manufactured news. The bank's annual report can
be accessed on the bank's Internet site here:

quot;a href=http://www.norges-bank.no/english/publications/annual_report/http://www....

quot;The information is in Note 3 on Page 71.

quot;Of course the noted gold bear greatly enjoyed yesterday,
which he accurately points out was reproduced across a
range of commodities. He is concerned to suggest that the
pattern of the Bundesbank's comments on gold indicate
malign intent. In view of the Norwegian information this is
certainly plausible.

quot;Nevertheless, it is clear that keeping gold down here is
going to require large fresh supplies of physical gold.quot;

Mihaly has another goodie for us:

quot;The 2003 report of the Reserve Bank of Australia ....

a href=http://www.rba.gov.au/PublicationsAndResearch/AnnualReports/http://www.r...

... shows on Page 85 that Australia has loaned out all
1,465 tonnes of its gold. That's not really a surprise but
something else is, on Page 31 under 'Reserves Management':

quot;'Foreign currency reserves assets and gold are held
primarily to support intervention in the foreign exchange
market. In investing these assets, priority is therefore
given to liquidity and security, in order to ensure that the
assets are always available for their intended policy
purposes.'quot;

What these two informative tidbits mean:

First the Norwegian news.

Norway's gold has already been sold. Gone.

The Norwegian central bank's press release was
disingenuous, suggesting that the bank had just dumped
central bank gold and there was more to come.

The announcement was made to correspond with the
trashing of the gold price a few days later. Nothing is
that coincidental when it comes to the gold market. The
announcement reveals the depths to which Western central
banks will go to coordinate their statements and activity to
trample the gold price. quot;Conspiracyquot; is much too small a
term to describe the price-suppression scheme.

The Norwegian news supports GATA's claims that central
bank gold loans are three times those acknowledged by
the gold industry and the Gold Cartel apologists. The
Norwegian gold loans were not included in any of the
official gold reserve numbers. More than 90 percent of
Norway's gold reserves have been counted among total
central bank gold reserves even though they were no
longer in the vault. How many other central banks have
done the same deceitful accounting?

For whatever reason, the Norwegian gold loans now
suddenly are to be recorded as sales and not loans --
that is, Norway will not ask for its gold back. Asking
for its gold back would put upward pressure on the gold
price.

This sort of revelation adds support to GATA's belief
that Germany is in the same boat as Norway, only
Germany's gold loans are hundreds of tonnes greater.
This suggests that a big percentage of Germany's gold
is lent out too and that, to avoid complications, the
Bundesbank also wants to record its gold loans as
sales. Thus any German gold sales would have no
impact on the gold price; they would be nothing more
than accounting entries.

Second, the Australian revelation.

The Australian central bank report says it all. Gold is
used quot;to support intervention in the foreign exchange
market.quot;

GATA calls it market manipulation, just like what we saw
yesterday.

The stark language used in this Australian government
is more evidence that GATA has been right all along.

----------------------------------------------------

To subscribe to GATA's dispatches, send an e-mail to:

gata-subscribe@yahoogroups.com

To unsubscribe, send an e-mail to:

gata-unsubscribe@yahoogroups.com

----------------------------------------------------

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

a href=http://www.jsmineset.comhttp://www.jsmineset.com/a

a href=http://www.cbs.marketwatch.comhttp://www.cbs.marketwatch.com/a

a href=http://www.mineweb.com/http://www.mineweb.com//a

a href=http://www.gold-eagle.com/http://www.gold-eagle.com//a

a href=http://www.kitco.com/http://www.kitco.com//a

a href=http://www.usagold.com/http://www.usagold.com//a

a href=http://www.GoldSeek.com/http://www.GoldSeek.com//a

a href=http://www.capitalupdates.com/http://www.capitalupdates.com//a

a href=http://www.goldenbar.com/http://www.goldenbar.com//a

a href=http://www.silver-investor.comhttp://www.silver-investor.com/a

a href=http://www.thebulliondesk.com/http://www.thebulliondesk.com//a

a href=http://www.sharelynx.com/http://www.sharelynx.com//a

a href=http://www.mininglife.com/http://www.mininglife.com//a

a href=http://www.financialsense.comhttp://www.financialsense.com/a

a href=http://www.goldensextant.comhttp://www.goldensextant.com/a

a href=http://www.goldismoney.info/index.htmlhttp://www.goldismoney.info/index....

a href=http://www.howestreet.comhttp://www.howestreet.com/a

a href=http://www.depression2.tvhttp://www.depression2.tv/a

a href=http://www.moneyfiles.org/http://www.moneyfiles.org//a

a href=http://www.howestreet.comhttp://www.howestreet.com/a

a href=http://www.minersmanual.com/minernews.htmlhttp://www.minersmanual.com/mi...

a href=http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.htmlhttp://ww...

a href=http://www.goldcolony.comhttp://www.goldcolony.com/a

a href=http://www.miningstocks.comhttp://www.miningstocks.com/a

a href=http://www.mineralstox.comhttp://www.mineralstox.com/a

a href=http://www.321gold.comhttp://www.321gold.com/a

a href=http://www.SilverSeek.comhttp://www.SilverSeek.com/a

Subscription site:

a href=http://www.lemetropolecafe.com/http://www.lemetropolecafe.com//a

a href=http://www.hsletter.comhttp://www.hsletter.com/a

Eagle Ranch discussion site:

a href=http://os2eagle.net/checksum.htmhttp://os2eagle.net/checksum.htm/a

----------------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

Centennial Precious Metals
3033 East 1st Ave.
Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

Investment Rarities Inc.
7850 Metro Parkwa
Minneapolis, Minnesota 55425
a href=http://www.gloomdoom.comhttp://www.gloomdoom.com/a
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
a href=http://www.kitco.comhttp://www.kitco.com/a

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
a href=http://www.milesfranklin.comhttp://www.milesfranklin.com/a
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
a href=http://www.buycoin.comhttp://www.buycoin.com/a
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

----------------------------------------------------

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

a href=http://www.gata.org/creditcard.htmlhttp://www.gata.org/creditcard.html/a

By GoldMoney:

a href=http://www.GoldMoney.comhttp://www.GoldMoney.com/a
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled quot;GATA.quot;

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.