Financial Post story on new bullion fund cites GATA

'MIDAS' COMMENTARY FOR APRIL 26, 2002
For a free trial subscription, visit www.LeMetropoleCafe.com
------------------------------

By BILL MURPHY
www.LeMetropoleCafe.com
Friday, April 26, 2002

Gold $311.40 up $3.70
Silver $4.63 up 5.3 cents

The gold trading action won't get any better
than it was Friday. Gold came in higher as the
touted $305 call position went out well in
the money in yesterday's European Option
Expiry in London. That was bad news for the
bears. Gold then sold off in New York to go
down almost $2 on the day, but the sell-off
was short-lived as it came roaring back.

Once it became clear that gold was going to
close above $305, the hedge funds poured in
on the long side taking the price higher and
higher. As gold approached the key $310
level, Goldman Sachs and J.P. Morgan Chase
began selling to any and all comers. They
offered 500 and 1,000 lots at a time.
Goldman, sleazes that they are, front-ran
their own orders, as they have done so often
in the past. Knowing they had big sell orders
to back them up, Goldman would sell a 500
lot, then offer a 1,000 lot. The market would
dip and they would buy back the 500, gold
would pop up and then they sold sell the
1,000 lot.

With all the Morgan and Goldman Gold Cartel
selling, gold still closed above the $310
magic number, which represented key technical
resistance. Gold broke into two-year high
ground after completing a massive base. This
is VERY bullish technically.

We now have two closes above $305 and $310
has been surmounted. This clears the way for
gold to move swiftly higher. When $325 is
taken out, gold could go parabolic, as the
fuse of the gold derivative neutron bomb has
been lit. It does not have to do so
instantaneously when gold touches $325. It
could take a few days or do so even before
gold prints $325. Hard to say exactly when,
but mark my words on this one, a volcanic-
like gold price explosion is coming.

With about 90 minutes to go in the Comex
trading session, my sources said that if gold
went $312.50 bid, it would take off. That was
the exact high late in the day for the June
contract, which portends good things for
Monday. We should get a sharply higher
opening out of London sometime very soon, set
off by panic short-covering.

The Comex gold open interest grew 6,132
contacts Thursday to 171,005 contacts,
additional confirmation that confident specs
are taking on the Gold Cartel. For a long
time I have categorically stated that the big
gold move would come with specs mega long and
the commercials mega short. That is just what
is happening. The commercials increased their
shorts by another 9,000 lots as of last
Tuesday, BEFORE the good run-up. A commercial
signal failure is coming right around the
corner.

Bullish gold points; which will all
contribute to gold's move to $800/$1,000 per
ounce.

* Low U.S. interest rates

* A minimal contango

* Producer buy-backs

* High oil prices (WTI crude closed at
$27.10)

* Strengthening pound, euro, etc. The dollar
continues to swoon and closed at 115.25

* A tanking stock market

* War strains

* Hedge book blow-ups

* Panic covering of naked call positions

* Panic covering of a fraction of the 15,000
tonnes of gold loans outstanding

* Loss of confidence in financial
institutions a la Argentina, whose banks open
when they feel like it

* * *

This was sent out today to all the Strategic
Investing subscribers after the close.

--

The three major market indices (DJIA, NASDAQ,
and Samp;P 500) crashed through the 10,000 and
1,700 and 1,300 barriers today with a thud.
The dollar was down against the euro and the
yen while gold made another high in this move
closing at $311.40 in New York and for two
consecutive days closed above $305. If the
London sage and the Midas from Le Metropole
Cafe, one of the GATA principals, are
correct, the fuse is now lit for gold to move
higher.

Despite a large increase in GDP fueled by
inventory buildups, the market shrugged that
news off like water from a duck's back and
headed south.

The Japanese markets will be closed for four
of the next eight business days so some very
interesting things could occur.

And Tyco (TYC) which closed near $60 at the
end of last year, fell through $20 today on
high volume. Guess it doesn't pay to change
one's business plan! Just wait until the
sharks go after Citibank, JP Morgan Chase,
and General Electric.

This is a very, very skittish market!

* * *

CARTEL CAPITULATION WATCH

A full alert on this one. The NasDOG closed
at 1664, down 50, while the DOW closed at
9910, down 124. As oft is said here, the
stock market is headed much lower, which will
put extraordinary pressure on the Gold Cartel
to quit the gold fraud. P/E ratios are STILL
double to triple their historic norms and
earnings are headed lower, not higher. As a
result of the Wall Street con, the average
American investor has not exited his/her
share positions. Many of those investors are
waiting to get back the money they lost over
the past couple of years. The panic stock
market selling has yet to hit the stock
market averages. It will be ugly.

A sign of the times:

* * *

VeriSign Shares Tumble After Internet Address
Registrar Reduces Forecast

VeriSign Inc. shares fell as much as 46
percent to a three-year low after the manager
of dot-com Internet addresses reduced its
second-quarter sales forecast.

VeriSign is trading around 7 and change, down
from a high of 250 something.

* * *

New York, April 26 (Bloomberg) -- U.S. stocks
fell, finishing their worst week since
September, as reduced earnings forecasts from
companies including General Mills Inc. and
JDS Uniphase Corp. fed concern a profit
rebound will be weaker than expected.

quot;Companies have been reporting earnings
without much enthusiasm for the outlook, so
everybody is asking, `Where's the beef?'quot;
said Robert Armknecht, who helps manage $170
billion at Columbia Management Group Ltd.
quot;There is no beef.quot; He said a rebound in
earnings, which most analysts expect this
quarter, to be delayed until the second half
of the year.

The Standard amp; Poor's 500 Index fell 5.82, or
0.5 percent, to 1085.66, a two-month low.
Media shares including Walt Disney Co.
accounted for 10 percent of the loss after
UBS Warburg cut ratings on the second-biggest
media company and rival Viacom Inc.

* * *

Big-name stocks are cratering. Tyco, AOL,
Dynegy, etc, look like they are in a free-
fall. Again, as oft-stated here, Wall Street
is a sewer. The filth in the sewer is
overflowing for the world to see. One fraud
after another is being exposed. There will be
some rioting over all of this when the stock
market really gets slammed. The NasDOG is
headed for 500.

The grandest scandal of all, the one that has
indirectly led to so many deaths in sub-
Saharan Africa, is ahead of us. At the GATA
African Gold Summit, I suggested African
countries demand retribution from The Gold
Cartel.

* * *

The Mitsui AM gold comment (mostly about the
Thursday action):

---

Gold surged in London time through 305 and in
early NY time to fresh highs, as fund buying,
option-related buying and triggered-stops on
the back of USD weakness and other external
factors (bomb fears in NY, Middle East
tensions) took grip in what initially looked
like it would be a quiet market ahead of the
OTC option expiration. One dealer in
particular was a featured buyer in the
morning and then seller in the afternoon.
There were also rumours of a producer buy-
back filtering through the market.

* * *

Word around town was that Durban Deep was the
producer. The Roodeport Rocket promised
shareholders it would cover all its hedges by
sometime in June.

* * *

The John Brimelow Report:

Indian ex-duty premiums: AM $3.32, PM $2.19,
with world gold at $307.20 and $$308.20.
Respctively above and below legal import
level. An impressive performance given the
jump in gold.

Although Tocom was looking at a long weekend
and a stronger yen, there was some buying by
the public. Open interest rose again, by some
2690 comex equivalent, on modest volume of
12,881 Comex equivalent. Mitsui from Asia
speaks of quot;light buying from g.p.quot; Japan re
opens (halfheartedly) on Tuesday.

Clearly the gold market has not acted this
way for years. Rumours of portfolio shifts by
Middle Eastern fortunes apprehensive about
U.S. interdiction of bank deposits may, for
once, deserve consideration.

-- JB

* * *

From David in Italy:

CNBC Europe does updates during commercials
in the U.S.

The woman in Germany says there is a rumor of
a merger/buyout.

Citibank and Deutsche Bank!

Someone in trouble?

* * *

This is good news for African miners who have
been devastated by the Gold Cartel:

---

Johannesburg -- Durban Roodepoort Deep (DRD),
the country's fourth-largest gold producer,
has bucked the labor-slashing trend seen in
the gold industry by aiming to create more
than 2,500 new mining jobs within two years.

Mark Wellesley-Wood, chairman and chief
executive of DRD, said yesterday the company
had already increased its workforce by 1,273
in the last year and this would be duplicated
in the coming year.

* * *

From a Cafe member on the recent Barrick gold
discovery in Peru:

---

You know Barrick's recent announcement
smells, and I finally got word from two
sources, a large investor and a large mining
company:

1. Altitude of the property.

2. Helicopters have a problem.

3. Workers have a problem.

4. 100 miles from the nearest road.

5. It's deep.

6. Lastly, word came out on the same day that
a lot of negative gold stories came out.

* * *

Michel Roy continues to forge ahead with ECU
Silver and bring the company back from
Nowheresville. From the company's press
release yesterday:

---

APRIL 25, 2002 -- ECU Silver Mining Inc.
(CDNX: ECU)

A subsidiary of ECU Silver, Minera William
S.A. de C.V., signed a rental agreement with
Mineral Santa Maria S.A. de C.V. and Jose
Antonio Gamiz Quiones, Mina Los Rosarios,
S.A. de C.V. for the use of a flotation and
cyanidation mill with a 200 tonnes per day
milling capacity, situated approximately 110
kilometers south of the La Esperanza project.

This will give the company access to a
milling facility to process the production
from La Esperanza as well as realize
metallurgical testing on ores from other
sources that require a combined
flotation/cyanidation circuit. The company
has already been approached by owners of
other small high-grade deposits to explore
and develop their properties on a joint
venture basis.

In early May, Minera Hecla will process 2,000
tonnes of ore from the La Esperanza project.
This lot consist of material from the open
pit area and will give an indication of the
grades that should be expected underground

* * *

What to say now that gold is breaking out and
is BEGINNING to show up on some radar
screens? You have heard some of this before,
but it is so important it bears repeating:

* You are privy to an analysis of the gold
market that few investors of the world know
about, or understand. The manipulation of the
gold price and GATA's findings have been
embargoed by the U.S. government, bullion
banks, and press.

* It is astonishing. Not only does the
general investing world have no clue about
the real gold story, neither do the clients
of the purveyors of gold information, the
bullion banks. The bullion bankers won't tell
them the truth. It is exactly the same
phenomenon that happened with Enron. Enron
went bust while the energy analysts of the
Wall Street firms touted the firm all the way
down with buy recommendations. Those same
clients are not being told the real gold
facts of life and probably won't be until
gold goes $450 bid. Then, the gold scandal
will be known all over the world. The Wall
Street criminals will have no choice. The
truth will have been revealed for them.

* As a result of the embargo of the real gold
facts, almost no one is in this gold market --
either in the shares or the physical market.
Both the physical gold market and the share
market are EXPLOSIVE. NOW!

* The big buyers of the physical market the
last few days have been the savvy hedge funds
and the Arabs. The Japanese public, the
Russians, the Chinese, and others have been at
it for months. I will not reveal who they
are, but two of the most well known hedge
funds in the world are Cafe members. Perhaps
there are more I am not aware of.

* The XAU rose 3.56 to 77.50, while the HUI
soared 6.40 to 112.50. Many of the
juniors/explorations did little on Friday.
Worse, many long-time gold shareholders were
more inclined to take profits and SELL the
smaller company gold/silver stocks. That is
because few gold company shareholders in the
world have any idea what is coming and why.

* Make this a positive for you and your
friends that WANT IN on one the greatest bull
market financial market moves of ALL TIME.
Take Golden Star, but there are many
others like it. When gold traded $302 weeks
ago, GSR traded at $1.90. It closed at $1.54 on
Friday. Gold rallied $7 the past two days, in
a historic breakout, and the share price of
GSR did not budge. Big buying showed up, but
big selling by the uninformed was just as
resolute.

* Throw out the book on analyzing the shares
and gold from a technical standpoint,
overbought analysis, etc. Think of the gold
market as a giant pressure cooker about to
blow, a slingshot that has been strung out
and then some. The gold fraud is ending. The
price of gold has been held hundreds of
dollars an ounce lower than where it should
have been for many years by a bunch of
criminals (a la Enron type of maneuvering).
Gold is going to blow sky high.

* Gold will melt-up as Enron melted down.

* Big money is pouring into the unhedged
senior gold companies. The combined market
cap of the seniors is still nothing compared
to the rest of the investment world. There
are few choices for investment managers that
want part of the gold action. Many of these
investment managers are restricted from
buying certain juniors/exploration companies,
many of whom remain at bargain basement
prices. It is homework time and investment
opportunity time out there. Spread the word
to all you know, before the gold scam cat
story is let out of the bag and gold is on
the move at $400 bid or $500 offer. This
truly is the once-in-a-lifetime gift for
anyone who is paying attention.

* * *

This is the sort of thing that has made
GATA's efforts so worthwhile:

---

Bill,

Being on Social Security and a small
retirement because of early onset Parkinson's
disease, I've been more concerned about
getting clear of my home mortgage than in
other investments. I spent my IRA on medical
bills. But my wife is employed as a teacher
in a parochial school and still has her IRA.

Our investment options are limited, but after
reading Midas, I advised her to put her IRA
money in a gold fund. She has doubled her
money there. The small investment that I made
in gold coins at gold's low point is up in
value to. Thanks!

-- Charley

* * *

If anyone asks you where you think
the price of gold is going. Just tell them:

TO THE MOON, ALICE. TO THE MOON!