A convert, sort of, to the conspiracy camp

11:05p EDT Tuesday, August 24, 1999

Dear Friend of GATA and Gold:

I have some news for you, and a question you might help
me with.

First, the news:

GATA seems to have made another important convert:
Frank Veneroso, author of the industry bible, the Gold
Book Annual, and publisher of the Gold Watch fax
service.

In an article in the August 20 issue of Gold Newsletter
(published by Jefferson Financial, 2400 Jefferson
Highway, Suite 600, Jefferson, LA 70121, $198 per
year), Veneroso dissects the deceit involved in the
Bank of England's recent gold sales plan. Then he
writes:

quot;Five months ago we wrote a piece arguing that there
was probably not a conspiracy to manipulate the gold
price.

quot;Our chief reason for taking this position was that
such manipulation would probably be effective only if
the official sector was heavily involved, and that
there were no good reasons for an intelligent central
bank or group of central banks to try to depress a
market that was in an unsustainable and growing
deficit. We thought one could explain the huge price
resistance in the gold market in terms of other
supply/demand variables.

quot;We can no longer explain the weak gold price in terms
of the latter. That fact, plus the justifiable suspicions
surrounding the U.K. and IMF gold sales, provides
support to -- but certainly does not provide proof of -- the
thesis of the conspiracy crowd.quot;

Veneroso says the gold supply/demand deficit is much
greater than even he has estimated. His conclusion:
quot;Someday there will be an explosive bull market in gold
that virtually no one today can imagine.quot;

As for the question:

Can you suggest to me any gold- or investment-oriented
Internet sites where GATA's dispatches might be posted
without charge to publicize our cause?

I have about a dozen usual haunts but I'm sure that I'm
missing some good ones, particularly in Europe,
Australia, and South Africa. I would be very grateful
for your help. Just reply to this address with any ideas.

As always, please post this wherever it seems helpful.

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