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Real Gold, Paper Gold, and Fool''s Gold
8:45p EDT Wednesday, October 13, 1999
Dear Friend of GATA and Gold:
You may be interested in the following letter, sent a few days
ago by GATA Vice Chairman and Treasurer John D. Meyer
to more than a hundred gold mining companies around the
world. It is our second appeal to them to help us.
Unfortunately most have not come forward yet even as we
have fought on their behalf and on behalf of their
shareholders against the most powerful interests, the
Masters of the Universe.
If you'd like to support our effort here, please copy this
letter and send it to your favorite company with your
endorsement.
If we're going to sue the bastards who have practically
all the money in the world but still are preying on
everybody else, we're going to need some money
ourselves, even if our lawsuit eventually is undertaken on
a contingency basis. GATA's officers work for free but
our lawyers have to eat, and we need to be able to travel
to Philadelphia to consult with them, to Washington to
consult with members of Congress, and to various
other places to consult with gold people.
We've already raised hell and gotten some good results
in a short time. The world now knows that gold is fighting
back. We could do a lot more with a little more help from
the industry.
Please post this as seems useful.
CHRIS POWELL, Secretary
Gold Anti-Trust Action Committee Inc.
* * *
October 10, 1999
An Open Letter to the Gold Mining Community:
Several months have passed since we last wrote to you.
Those months have been filled with the bitter and the
sweet. Certainly the Bank of England announcement on
May 7th was a painful period for the gold community.
The reign of terror intensified as June approached and
the bears' siege continued to hold us hostage
throughout the summer.
But then on Sunday, Sept. 26, the world of gold was
stunned by the announcement of the European central
banks. In one dramatic move the reign of terror was
broken.
For GATA it has been a defining moment validating our
cause. The power of the advance has furnished the
clearest evidence to date of how aggressively the gold
market has been manipulated.
Unfortunately for some in the gold community the reign
of terror has not lifted; it has only begun. For
certain bullion dealers it is well-deserved.
In January 1994 the investment world was shocked by
the sudden, spectacular brush with bankruptcy of
Metallgesellschaft A.G. They were the first to go in
what turned into a string of derivative blowups that
hit Proctor amp; Gamble, Hallmark, Dell Computer, Gibson
Greetings, Orange County, and Barings.
Now with the biggest price move in a decade, and with
the new bull market barely 2 weeks old, many in the
gold industry face catastrophic losses or worse. As in
1994 the wrath of investors and their attorneys will
rush for accountability and justice, while the market
will continue to deliver its own swift verdict.
John Hathaway of Tocqueville Asset Management is quite
correct when he urges us not to quot;be confused by self-
serving outcries from various parties trapped in the
gold short squeeze.quot; They are quot;self-made victims.quot; The
true victims are the loyal shareholders and those
companies courageous enough to suffer through the
manipulations of the bullion dealers without becoming
part of the problem.
As I am treasurer of the Gold Anti-Trust Action
Committee, it has been my primary duty to focus on
raising money. While we have been supported by a few
courageous members of the gold mining community, most
have been silent. If it were not for hundreds of
magnificent individuals, we would not have been able to
accomplish what we have.
Let me address the members of the mining community who
have so far remained on the sidelines.
Perhaps in the beginning many of you were not convinced
that the gold market was manipulated. Surely many
rightly questioned GATA's credibility and staying
power. But now clearly the surge of events since
January are vindicating and confirming the task set out
by GATA.
No matter how sweet this first victory may be, a long
battle lies ahead. We need to capitalize on this
moment.
GATA's information network is functioning well and in
position. But we need your support to take our
investigation to the next and final level. It would be
gratifying to see some of the major producers step
forward to publicly support GATA's cause.
In addition, we need your financial support and we urge
you to contact either myself or our attorneys if you
have any information pertaining to our investigation.
We think you owe it to yourself as fiduciaries of your
corporation. You certainly owe it to your workers and
shareholders.
Before this process is over everyone is going to be
held accountable.
As GATA Chairman Bill Murphy has been detailing at his
financial web site, www.lemetropolecafe.com, we have
evidence that the Federal Reserve Board now may be
intervening on behalf of bullion dealers who are short
gold. If this is so, how can you be indifferent? Is
bailing out bullion dealers a proper function of
government?
The uptrend in gold is only 2 weeks old. After the
years of exploitation of the gold producers and their
shareholders, such a bailout would be an outrage. It is
time to take Wall Street off corporate welfare and to
free our markets.
GATA believes that we confront the financial scandal of
the century. Its nature does not and will not permit
any compromise.
Gold lending once offered some legitimacy but it has
become a fraudulent mechanism for exploiting an
industry, violating our laws and financing the over-
leveraged positions of Wall Street. This has occurred
with the encouragement and complicity of our
government.
GATA has proven itself and can accomplish what might
otherwise be ill-suited to the corporate world of
today.
Please give us your support. We are here for the
duration. We will prevail.
Some details about GATA:
The Gold Anti-Trust Action Committee was incorporated
in Delaware in January 1999 and is a tax-exempt
organization under Section 501(c)(3) of the U.S.
Internal Revenue Code. Its purpose is to restore
freedom and transparency to the gold market and educate
the public about the need to do so. We intend to bring
the manipulation of gold prices to the forefront of the
U.S. legal system. There were two critical events
leading to this decision. One was the bailout of Long-
Term Capital Management at the behest of the Federal
Reserve. The other was Federal Reserve Chairman Alan
Greenspan's repeated statement to congressional
committees in July 1998 that quot;central banks stand ready
to lease gold in increasing quantities should the price
rise.quot;
We have retained the Philadelphia law firm of Berger amp;
Montague, which enjoys a worldwide reputation in class-
action lawsuits and antitrust law. Berger amp; Montague
has been successful in the Exxon Valdez case and Orange
County's lawsuit against Merrill Lynch, and won a $2
billion settlement in the Drexel Burnham/Michael Milken
case. The firm is now counsel in three Holocaust cases.
Senior partner Merrill Davidoff is extremely
knowledgeable about the commodities and capital
markets.
For more information please visit our web sites:
and
JOHN D. MEYER
Vice Chairman and Treasurer
Gold Anti-Trust Action Committee Inc.
