Gold''s great future, and South Africa''s too

9p ET Tuesday, December 9, 2003

Dear Friend of GATA and Gold:

Whatever the fate of the dollar, it's starting
to get commented on, if not much in the United
States. A big article in today's Financial Times,
appended here, says China has joined OPEC
countries in dumping dollars. And Marshall
Auerback of Prudent Bear has typically brilliant
analysis, reposted at GoldMoney, headlined quot;It's
Too Late for a Dollar Devaluation,quot; speculating
that the dollar's so-far-controlled decline may
yet turn into a rout. You can find Auerback's
analysis in the quot;Founder's Commentaryquot; box at
the upper left of the GoldMoney home page here:

a href=http://goldmoney.comhttp://goldmoney.com/a

MineWeb reports a smashing debut today for the
World Gold Council's bullion fund on the London
stock exchange. Now if only the fund can find a
safe place to stash the gold and to keep track
of it all.... You can find the MineWeb report
here:

a href=http://www.mips1.net/MGGold.nsf/Current/4225685F0043D1B285256DF70074E7ht...
A9

Or try this abbreviated link:

a href=http://ls.shapebyforce.com/sbf/386http://ls.shapebyforce.com/sbf/386/a

At GoldSeek, Ted Butler details the work of the company
he considers the biggest manager of the silver price,
American International Group. You can find Butler's
report here:

a href=http://news.goldseek.com/TedButler/1071001317.phphttp://news.goldseek.co...

Also at GoldSeek, Alex Wallenwein reports on new U.S.
national security legislation that will subject precious
metals dealers and others to more scrutiny. Wallenwein's
essay is headlined quot;Gold Dealers Conscripted to Spy on
You?quot; and you can find it here:

a href=http://news.goldseek.com/AlexWallenwein/1070995050.phphttp://news.goldse...

Why did the gold and silver shares sell off sharply today
despite the continued rise in gold and silver prices? At
LeMetropoleCafe.com, GATA Chairman Bill Murphy's
quot;Midasquot; commentary speculates that the recent article
in Barron's calling gold shares overpriced was having
some impact even as gold's fundamentals are only
improving. The Cafe is a subscription site but you can
take a free trial subscription here:

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

That Financial Times article about the falling dollar
is appended.

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

* * *

U.S. Dollar Slides to New Lows
After Chinese Banks Repatriate Funds

By Alan Beattie
Financial Times
Tuesday, December 9, 2003

The dollar slid further yesterday after the Bank for International
Settlements said China's banks were repatriating funds and
seeing an increase in domestic deposits. The U.S. currency
hit a new low against the euro and approached its lowest level
against sterling for a decade.

Current trends are quot;implying that the surplus of funds placed
in the international banking system by the Chinese banking
sector that has been available for the funding of foreign
government deficits is shrinking,quot; a report from the central
bankers' central bank said.

Analysts said there appeared to be little chance of a dollar
recovery in the near term given the absence of official
resistance.

A senior Bush administration official told Reuters that
President George W. Bush would today urge Wen Jiabao,
the Chinese premier, to take steps to move China's yuan
to a free-floating currency during his visit to the U.S.

The U.S. also wants China to stop slowing the import of
American soybeans and other commodities.

The BIS also said that members of the Organisation of
Petroleum Exporting Countries were increasingly
repatriating money rather than keeping it in dollars.

Although the report said there was little evidence of
international investors losing confidence in
dollar-denominated bonds, markets focused on the more
negative elements for the dollar.

The euro rose to a new high of $1.2238 against the dollar
in London trading, and stood at $1.2221 by the close of
the session. Sterling climbed to a fresh five-year high at
$1.7361 against the dollar, a fraction short of a 10-year
peak.

Analysts point to the lack of official resistance to the
dollar's slide. U.S. officials have mostly declined to
comment. And although some European officials have
expressed concern about the rise of the euro, the
message has been far from concerted.

Marc Chandler, currency strategist at HSBC in New
York, also noted that the Japanese position appears
to have shifted from trying to defend a level of the yen
against the dollar to smoothing the yen's rise against
the U.S. currency.

However, there has been little spillover from currency to
bond markets. With the Federal Reserve conducting a
campaign of verbal intervention to hold down expectations
of interest rates, bond yields have remained at low levels.

The Federal Reserve's open markets committee meets
today to consider interest rates, with attention focusing
on what the central bank will signal about its commitment
to keep rates low for the future.

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

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

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

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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.
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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.
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www.ColoradoGold.com
Don Stott, Proprietor
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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
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Kitco
178 West Service Road
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Toll Free:1-877-775-4826
Fax: 518-298-3457
and
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Lee Certified Coins
P.O. Box 1045
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www.certifiedcoins.com
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1-800-835-6000
leecoins@aol.com

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fax: 952-925-0143
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Contacts: David Schectman,
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15018 North Tatum Blvd.
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Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

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

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