Bulletin from Midas

1:30a EDT Saturday, August 14, 1999

Dear Friend of GATA and Gold:

Here's a bulletin from GATA Chairman Bill Murphy,
dispatched Thursday to members of
www.lemetropolecafe.com. I'm sorry I'm a little late in
sending it along to you; my email has been out of
joint. Please post this wherever it seems useful.

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

* * *

Thursday, August 12, 1999

By Bill Murphy
www.lemetropolecafe.com

At the moment gold is trading $2.20 higher on the
Comex.

Yesterday Midas du Metropole informed you that much of
the gold buying was due to a producer buyback. We just
received word from Icarus that there is another
producer buyback going on again today.

And of possible extreme significance, quot;Hannibal
Lechterquot; just bought 2,000 December 300 gold calls. And
another very credible source tells us they have been
told that quot;Hannibalquot; -- Goldman Sachs -- is reported to
be willing to buy up to 20,000 more December 300 gold
calls.

For days and weeks now we have been reporting to you
how tight the physical gold market is. That is what the
soaring lease rates and narrowing gold market spreads
have been telling us.

Our camp believes the gold loans have risen to out-of-
control levels -- 10,000 to 14,000 tonnes. The Hannibal
camp will tell you 4,000 to 6,000 tonnes. They are
professional disinformation spreaders. Perhaps the time
has come when they realize the jig is up, and since
they are all so short, they are trying to cover their
butts by covering their exposure (for themselves or
clients) any way possible.

For two weeks we have explained to you the reasons why
we have felt it is time to be aggressively long. Day
after day the evidence and market action suggests that
Midas du Metropole's assessment of the gold market is
on the money.

The gold bear market is over. The Hannibals will not
give up their manipulation easily. But they may have no
choice. If outside credit markets continue to
deteriorate, central bankers will call in many of the
gold loans -- at least many of the ones in spec hands.
That will reduce supply and force gold prices much
higher.

For the inside scoop on gold, stay tuned to the Cafe.

Bill Murphy
www.LeMetropoleCafe.com