Approaching the breakout point, GoldMoney''s Turk writes

12:30p ET Sunday, November 23, 2003

Dear Friend of GATA and Gold:

Jim Sinclair has posted quot;A Review of Last Week's Gold
Market,quot; which is largely an expert speculation about
why Barrick Gold last week reversed its position on
hedging so abrupty and why Goldman Sachs and others
were desperate to cap gold below $400. Sinclair argues
essentially that gold derivatives have hit the
long-awaited blowup stage. You can find Sinclair's
commentary here:

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

Here are some similar thoughts from Saturday's market
letter for private clients from B.C. Harris at Harris
Capital Management, a commodities futures broker and
adviser in Boca Raton, Fla., who for years, like GATA,
has noted central bank manipulation of the gold price
and whose Internet site is:

a href=http://www.harriscapitalmanagement.comhttp://www.harriscapitalmanagement...

quot;There's been a lot of interesting news regarding Barrick
lately as it has made some high-profile comments that
it is abandoning its hedging program. Barrick is the one
that has been long suspected of colluding with the banks
and has reportedly sold forward most or all of its
production for several years out at much lower prices.

quot;Could it be that Barrick is facing margin calls? Could it
be that Barrick was an ally of the central banks when it
was convenient for them and now margin calls are becoming
an issue?

quot;I don't know the answers yet, but I do know that
Barrick's hedge book has to be a mess and it has to
have a huge margin debt developing. I had always
assumed that the banks told Barrick that it would have
an unlimited line of credit in return for its
cooperation. Maybe that understanding has been broken?

quot;At any rate, to all but the most dense market
participants, that the price of gold is being managed
by the banks is now pretty much a given, and more and
more people are talking about it. That in itself is
dangerous for the financial engineers.quot;

And here's equally interesting and plausible speculation
about Barrick from loyal GATA member Marcia:

quot;Allow me to speculate on what really happened between
Thursday and Friday to cause Barrick to do the
embarrassing about-face.

quot;When Barrick's CFO went to New Orleans (presumably
for a meeting on the Blanchard lawsuit, maybe with
Barrick's own attorneys, maybe with both sets of
attorneys, maybe a settlement conference, maybe a
strategy session with counsel), he was shown some
specific evidence that Blanchard intends to use to
prove its case in court.

quot;I surmise that this evidence must be some kind of
iron-clad proof that Barrick and J.P. Morgan Chase have
indeed been manipulating the gold market. It would have
to be some form of evidence that is incontrovertible and
undeniable, where the probability of successfully
challenging it is small -- like a letter, an e-mail, an
admission, a sworn statement by an insider witness, or
possibly a paper trail.

quot;I can't imagine what it is, but that is the character it
must have had to have produced such a dramatic change in
Barrick. Sweating profusely and perhaps wrestling inside
to control other involuntary bodily functions, the Barrick
CFO hastily excuses himself and telephones Barrick Chairman
Peter Munk, who is at that financial conference in London.
They strategize and Munk agrees that Barrick has no more
options and that its best choice from a business standpoint
is to flip and go long.

quot;That is, the era of manipulation of the gold price is
over and any further attempts are seen as a losing
proposition. For the viability of its business, Barrick
has no choice.

quot;It will be interesting to see what effect the
hypothesized evidence has on Morgan in the next few
weeks.quot;

GATA has maintained from the beginning that Barrick, the
huge short in the gold market -- and, as the research
of GATA consultant Robert K. Landis determined, the huge
short in the silver market too -- was the agent and cover
for bullion bank and central bank suppression of the gold
price. Events seem to be supporting this interpretation
and to be suggesting great stress and even an upheaval in
the gold market. In any sort of disreputable collusion,
when one of the leading bad guys defects, the others are
probably in jeopardy as well.

The odds still may favor the bullion banks and the central
banks in the suppression of the gold price at least through
futures contract expiration this week. But the greater part
of the utility of the gold price suppression scheme has been
its surreptitiousness. As the Harris Capital Management
letter suggests, when people begin to realize that the gold
market has been rigged and WHY it has been rigged, the
confidence game that central bank management of the world
financial system has been may be in grave danger of failure.

GATA's advice: Get your gold and silver -- as in the real
stuff -- hold on tight, don't be faked out at the last
minute, and God help the world.

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

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

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

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