Blanchard Co. sues Barrick and Morgan, charging manipulation of gold price

11:24p ET Tuesday, December 17, 2002

Dear Friend of GATA and Gold:

Note the excerpt below from today's CBSMarketWatch
story headlined quot;Gold prices reach five-year high,quot;
which you can find here:

a href=http://cbs.marketwatch.com/news/story.asp?guid=%7B0D2A11AE%2D1F18%http:/...
2D4FED%2D845F%2D61193458BC8F%7Damp;siteid=mktw

Against this backdrop, Weiss Research financial analyst
Kevin Kerr said he could envision a scenario in which
quot;investment banks with huge short positions [in gold] are
going to start feeling the worst kind of squeeze imaginable,
and they should have to start unwinding their short positions
in a hurry.quot;

quot;The investment banks saw an opportunity to short a
commodity [gold] they felt would never regain its value,quot;
Kerr explained, adding that their reason was likely based
on quot;greed and lack of foresight.quot;

It's a quot;big mistake,quot; he said. quot;Now they're stuck in a big
way.quot;

The investment banks' move to quickly unwind their short
positions could quot;light a fire under the price of gold,quot; Kerr
said, prompting further price spikes.

Word of the vastly underestimated short position in gold is
getting around, thanks to the work of GATA and its friends.

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