Hedgers are shorting gold shares as they go long gold in a bet on war

12:25a Tuesday, January 28, 2003

Dear Friend of GATA and Gold:

Vancouver and the Vancouver Resources Investment
Conference, sponsored by Cambridge House, could
not have been more welcoming to GATA, especially
since the conference, held at the city's convention
center, was right around the corner from Howe Street
and the Sinclair Centre, which, we fancied, soon
will be renamed for our heroes Reg and Jim,
respectively.

The conference was enormously better attended
than last year's and the crowd was much younger,
signifying a widening interest in gold and the
exploration companies in particular.

GATA had a half hour of prime time on the program
for the conference's second day, and when
conference chairman Joe Martin of Cambridge House,
introducing GATA Chairman Bill Murphy, asked the
600 or so people in the auditorium if they had heard
of and supported GATA, most hands went up.

Murphy reviewed the main points of evidence of
collusion among bullion banks and central banks to
suppress the gold price, as well as the evidence
that the banks are running out of gold with which
to suppress the price. His remarks will be shared
with you here if he happened to commit them to print
and if he ever returns from wherever his mining-
camp buddies took him as the conference ended.

In the meantime, all that can be offered to you are
my own remarks, which followed Murphy's and
constituted a pitch for support for GATA. They are
appended here.

Perhaps more important, Murphy was interviewed
at length today by the second most important
newspaper in the United States, which, like the
most important paper, long has declined GATA's
repeating urgings to report on the gold issue. If
something comes of that, we'll let you know.

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

* * *

Remarks by Chris Powell, secretary/treasurer,
Gold Anti-Trust Action Committee Inc.,
at the Vancouver Resources Investment Conference,
January 27, 2003

As the Dow Jones Industrial Average broke down through
8,000 today, dragging with it the hopes of millions
of people who remain in denial about what is happening,
what our friend Bob Bishop has just described as a
historic destruction of wealth, I was reminded of
Groucho Marx's rueful reaction to the great stock market
crash of 1929, in which he had lost his fortune.

Groucho was sitting around in a speakeasy with a friend,
Morty, complaining about their bad luck in the market --
or was it bad judgment? -- about the companies they had
invested in only for them to fall to fractions of their
former value. But Morty tried to see the bright side.
quot;Look,quot; he told Groucho, quot;we're broke but at least we've
got our health. My brother Fred just died after a
lifetime of illness. Poor Fred hardly had a healthy
day since he was born. Why, Fred had diabetes at 29.quot;

Groucho was inconsolable. He barked back at Morty:
quot;Diabetes at 29? That's NOTHING. I had Radio at 104!quot;

True story, and probably metaphorically true today.
There really may be people who would prefer to have
had quot;diabetes at 29quot; to what they really had -- say,
IBM at 104. The gold and silver mining industry now
has a responsibility to them and to the rest of the
world.

For while this gold and silver stuff is rightfully
about making money, please don't forget that it is
much bigger than that. Because of the historic place
of gold and silver in the monetary order, gold and
silver are also about restoring simple reality and
honesty to the world financial system.

We at GATA don't necessarily mean by this a gold or
bimetallic standard for currency. Indeed, it's fine
with us whatever people want to use as money. If
people want to use seashells or oxen as money, let
them. But let there be a free market in gold and
silver, seashells and oxen, so that everything
economic might be fairly measured by everything
else.

Unless that free market is secured for the long
term, the mining industry's efforts now will achieve
only a little transitory profit for a few. Of course
I will enjoy that transitory profit as much as
anyone else, but it will not be what makes GATA's
work important.

At GATA we work for a free-market future in which the
monetary virtues of gold and silver will show to their
best advantage. We have mobilized the best minds of
the gold world -- among them Reg Howe, Mike Bolser,
James Turk, Bob Landis, and Andrew Hepburn -- to
investigate and expose the rigging of markets and
surreptitious government support of that rigging. We
have alerted the investment world to the dangerous
short positions in the precious metals. We have
explained how the greater purpose of this market
rigging is the imperialism of the U.S. dollar and
the criminal expropriation of the developing world.
We have sued some of those responsible and are
assisting a similar lawsuit against others who are
involved. And we are trying to do the work that the
mining industry's nominal representative, the World
Gold Council, so far has declined to do.

No matter the circumstances, we fight as best we can.
We tend to fight more effectively when we have a little
money to spend on publicity and litigation and spreading
the word. So as GATA's secretary/treasurer, I'm up here
to thank those companies and individuals who continue
to help us and to urge others to consider making a
small donation -- and to let them know that GATA is
recognized by the U.S. Internal Revenue Service as a
501-c-3 non-profit civil rights and educational
organization and that, because of this, contributions
to GATA are federally tax-deductible in the United
States.

We can do a lot of damage to the bad guys just by
parachuting my colleague, Bill Murphy, into strategic
situations around the world where, if he can't bring
people around, he at least can be the skunk at the
garden party. It just makes everything a lot easier
when we can afford to bring him home in time for the
next attack.

We can win this one because our cause is right and
because, in the United States, economic policy is
PUBLIC policy and eventually will be forced into
public view, where the policy of rigging precious
metals prices particularly and markets generally
will not stand the light of day.

We ARE winning, and if we're right, the poet James
Russell Lowell tells us not to give up, no matter
what the power brought to bear against us, no matter
that we may be up against all the money in the world:

Truth forever on the scaffold, Wrong forever on the throne --
Yet that scaffold sways the future, and, behind the dim unknown,
Standeth God within the shadow, keeping watch above His own.

Thanks so much for hearing us out. Please help us if you can.

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

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

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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.nethttp://www.sharelynx.net/a

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

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

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Eagle Ranch discussion site:

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

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

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 Frankl Ltd.
3601 Park Center Building
Suite 120
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@buycoin.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

By Crowne-Gold:

a href=http://www.Crowne-Gold.comhttp://www.Crowne-Gold.com/a
Holding: GATAComm@aol.com

By E-Gold:

a href=http://www.e-gold.comhttp://www.e-gold.com/a
Gold Anti-Trust Action Committee Inc.
Account number 110915

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.