Minesite report puts the gold clues together


11:55p ET Wednesday, February 28, 2001

Dear Friend of GATA and Gold:

I'm stealing and sending to you below excerpts from
GATA Chairman Bill Murphy's "Midas" commentary tonight,
sent by email to his subscribers at
www.LeMetropoleCafe.com, because it has important
news and may encourage our side after a seemingly
bad day.

If you want to see all this stuff -- and make me feel
less guilty -- visit the Cafe and consider a free trial
membership. The price is right

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

* * *


By Bill Murphy

Gold was bashed $3 in Asia last night as the Bank for
International Settlements commenced a new lending
operation via Dresdner Bank and others. That caused the
one-month lease rate to plunge from 5 to 2 percent.
Still, 2 percent is almost triple what it was two weeks

It is amazing lately how the BIS shows up wherever GATA
pokes its head. The good news is that it shows how
right Reg Howe is. Reg, the bloodhound, has the fox in
his sights.

Trading on the Comex today was furious, with about
49,000 contracts changing hands. The big buyer was
Hannibal Lecter (Goldman Sachs) himself. That brought
gold back all the way back from a sharp early deficit,
as it closed down only 60 cents at $267.10. Word from
the spot market was of a significant struggle between
buyers and sellers going on all day.

Indian gold demand is very firm, as the Indian
government today revealed a decision in its budget to
cut the import duty on gold to 250 rupees per 10 grams
from 400 rupees, in a move to discourage smuggling.

Silver was strong all day and finished at $4.46, up 5

The gold bullish consensus is only 27, silver only 20.
Both are extraordinarily low from a historic

The CRB appears to have put in a near-term double
bottom around 220. The short-term CRB technicals are
very bullish.

How about that foot-in-mouth Bear Stearns chief
economist and former Fed Governor Wayne Angell! It was
eat-crow time on CNBC, as he had to backtrack on his
prediction of an interest rate cut.

Fed Chairman Alan Greenspan killed that idea in his
testimony before Congress this morning.

This email from a fellow Cafe member may be of special
interest, as I now can tell you for sure that GATA's
revelations have reached the highest levels of the U.S.

* * *

Good day, Bill:

I was watching CNBC on Tuesday, slightly amused at the
incessant commentary from the talking heads over the
"imminent" rate cut. But this is not the reason for my
e-mail. Yet again yesterday they were interviewing
Wayne Angell from Bear Stearns, trying to pin him down
on a date for the rate cut and/or any other "bullish"
info he could divulge.

In the couple of minutes he was on, Angell basically
said that the Fed has the power to create the "V
bottom" recovery in the economy by ensuring that ample
liquidity is provided to the markets. His rather crude
definition was that if enough liquidity was pumped into
the economy, the "value" of everything from equity
prices to house prices would rise -- though he did fail
to mention that this would be relative to a falling
dollar -- including a broad spectrum of commodity

Insert here various inane questions from CNBC and a
reiteration of above info by Angell.... And now for the

Just before CNBC cut away and in Angell's last
comment, he said that in such a high-liquidity
environment, the price of everything would rise....

The emphasis was added by him, not me.

Now why even mention gold, seeing as the likes of him
and all the other establishment members seem to go out
of their way not to mention that four-letter word? Was
this the first in a series of warning shots that the
price of gold is about to be set free?

I don`t know, but just thought i would bring this
interview to your attention in case you missed it.

* * *

Wayne Angell has been as vociferous a gold basher as
any I can recall for six years. Now he has changed his
tune. There is no doubt in my mind that he has been
told that the gold game is changing -- forever.