Congress gets interested in gold manipulation

10p EDT Monday, May 8, 2000

Dear Friend of GATA and Gold:

The Battle of Washington is about to commence.

A little more than a year ago the Gold Anti-Trust
Action Committee developed a strategy to win the day
against the manipulators of the gold market. Our
strategy was based on the quot;enveloping hornquot; tactic of
the great South African Zulu chieftain, Shaka.

That strategy is working for us as it worked for him.

To defeat his opponents, Shaka had his warriors form a
diamond formation that unfurled into a horn-like form
as both sides suddenly flared out to surround his foes.

The point of GATA's formation is our law firm,
Philadelphia's highly regarded Berger amp; Montague. While
we have not yet brought legal action, our law firm has
kept our adversaries off-guard.

The right flank of the quot;hornquot; has done its job well.
Our plan was to get the gold producers behind us, to
inform the investing public of the dangers of excess
hedging, and to support those companies that did not
hedge or started to reduce their forward sale
positions.

To date GATA has raised $206,498. Five major gold
companies have supported us, many juniors have chipped
in as well, and so have many individuals from around
the world. Though the price of gold has gone down, many
non-hedgers are outperforming the big hedgers like
Barrick Gold. It is such a surprising development that
The New York Times journalist just published an article
headlined , quot;Gold Believers Put Rationality to Test.quot;
Randall Oliphant, president of Barrick Gold, was quoted
in the article as saying he found it difficult to
understand. quot;It doesn't make sense to us and I can't
explain it,quot; Oliphant said.

The task of GATA's left flank was to get the Internet
behind us and to take our case to the politicians in
Washington to expose the manipulation and to ask them
to take action. We are making our move tomorrow.

The GATA team -- Chris Powell, Reginald Howe, Frank
Veneroso, and me -- are meeting to go over our strategy
for the next day. And on Wednesday we will be
presenting our quot;Gold Derivative Banking Crisisquot;
document to members of Congress and their staffs. Our
report is 90 pages. There is no way that any fair-
minded person can come read this document and conclude
other than that the gold market IS manipulated and that
a derivative crisis is on the horizon unless immediate
steps are taken to avoid it.

The gold price must be allowed to rise, and sharply, to
slow down gold demand.

On Thursday GATA will deliver a personalized bound copy
of our document to every Senate and House banking
committee member. Material from Frank Veneroso,
Reginald Howe, and www.LeMetropleCafe.com's
quot;Chronological Commentary on the Manipulation of the
Gold Marketquot; from Sept. 9, 1998, through Feb. 15,
2000, has been included.

Next week a color center-spread open letter, addressed
to the banking committee members, will appear in Roll
Call, the weekly newspaper that covers Congress. All
Washington will know that if Congress does not
investigate this serious matter and the banking crisis
develops, they will have no one to blame but
themselves.

Early next week GATA will issue a press release on our
operation. In addition, the quot;Gold Derivative Banking
Crisisquot; document will be sent to all the gold producers
and to the press. (That includes CNBC.)

GATA will also send a copy to Gold Fields Mineral
Services and challenge it to debate us on our findings.

The manipulation crowd has power and money. We have the
truth and the Internet. We will win. Wish us well.

BILL MURPHY, Chairman