Toronto mining conference to hear from GATA


By Bill Murphy
March 5, 2001

To say the least, I was a bit surprised to see a letter from
The White House today when I picked up my mail. The
correspondence read:

* * *

February 28, 2001

Dear Mr. Murphy:

Thank you for your letter. I apologize for the delay in my
response. I hope you understand how tremendously busy
I've been over the past several weeks.

I appreciate the information you sent regarding the price of
gold. I'll be sure to pass this along to the member of my
economic team who specializes in this area.

If there is any way my staff or I can be of assistance to you,
please don't hesitate to contact our office.

Thank you, once again, for your thoughts.


Larry B. Lindsey
Assistant to the President for Economic Policy

* * *

If that were not enough good news for one day, I just
received the curriculum vitae of Eric Bamoza Molefe, who
called GATA headquarters in Durban offering to lobby in
South Africa on our behalf:

* * *



Boston Unitversity, 1983, Diploma in Journalism

South African Newspapers Academy (1984), Diploma in

University of the North (1985-1988), 4th year B. Proc

Institute of Management (London) 1989
Diploma in Finance
Diploma in Marketing
Diploma in Economics
Diploma in Business Management

RAU University (1990)
Diploma in Banking

Institute of Chartered Financial Analyst (1991)
CFA (Chartered Financial Analyst)

International Management College (IMC) - 1992
MBA (thesis pending)

Wits Business School (1993)
JSE Course

University of Orange Free State (2000)
Studying for LLB

Institute of Tax (RAU) - 2000
Higher Diploma Tax


1983 Sowetan Sunday Mirror
1984 EP Herald and Financial Mail
1989 Cape Investment Bank
(Banking Trainee)
1990 Prima Bank Limited
1. Money Market
2. Corporate Finance
3. Funding Department
1994 PrimeVest
Structured Finance Director
Board of Stocks Business
Running Family Complex
1996 Wits Nigel Ltd. (now New Mining Corp.)
Group Managing Director
Ermeson Group Limited
Executive Chairman
Powerlib Group Limited
Executive Chairman
JCI Limited
Executive Group Director
Excl Petroleum
Deputy Chairman
Medicare Swaziland
Executive Director


Institute of Chartered Financial Analyst
Institute of Directors
Associate member of the Institute of Bankers
Black Management Forum
Black Economic Empowerment Commission

* * *

Could GATA have a finer man in all of South Africa to
help us make our GATA Africa Gold Summit a success?

Gold traded very quietly today in a shortened session due to
the snowstorm enveloping the northeastern United States.

The CNBC types keep referring to the big deflation as a
reason Alan Greenspan should lower interest rates to help
out an increasingly desperate Wall Street. The CRB will
give them little solace. Early last week I pointed out the
unusually bullish look of the CRB chart pattern. The CRB
spent most of today around 226, way off recent lows, as its
sharp rally continues. Looks to me like it will make new
highs in the months to come.

Gold is making yearly highs in yen terms.

Canada sold 20,000 ounces of gold in February and is down
to a pitiful 1.2 million ounces left.

* * *

Brief gold rally wrong-foots investors

By Robin Bromby
March 5, 2001
The Australian

Asa rally it was short-lived -- but just long enough to show
gold's potential to catch some big players on the wrong

Gold rose to $US268.25 last week, its highest level for
seven weeks.

Those holding any of the many massive short positions
would have been given a fright.While the metal was back at
$US262.85 by Friday night, the brief rally had shown the
yawning gap between available physical gold and that sold
forward by traders and speculators. After all, these people
know that short positions -- gold sold on paper in the belief
that the physical gold can be bought at a cheaper price to
fill the contract in the future -- amount to something
between five and eight years' physical production.Annual
world gold production is about 2550 tonnes, but short
positions total several times that, with some estimates as
high as 17,000 tonnes.

The tight state of gold supply was thrown into relief last
week when leasing rates soared as high as 4.75 percent for
one month, against a rate of less than 0.5 percent for most
of 2000.

Even as late as the end of January, the monthly gold lease
rate was just 0.8 percent. By last Friday it was back down to
1.7 percent.The rally is being written off by some as just
one large short position being covered. But even if that
were so, the price and leasing rate jumps do illustrate the
potential for serious dislocation if there were to be a
sustained rally.

* * *

Slowly, but very surely, the Gold Cartel is being found out.
From James Stock in Durban, South Africa:

"You might be interested to know that the market jobbers
(also known as market manipulators) got killed in
Johannesburg today on Harmony and Gold Fields and on
the respective warrants, 2harsg and 2gfisg. They marked the
Harmony shares down to 3415c at the opening, and Gold
Fields down to 2970c. But Harmony closed near to 3700c
and Gold Fields near 3300c! And the respective warrants
jumped around 15 percent from their respective opening
prices, despite the gold price doing nothing! The XAU
index is slightly higher in New York at present even though
the gold price is static. Food for thought."

James also sent me some news stories in the local press
about the South African government taking on the
international drug companies. It is a long-awaited court
case between pharmaceutical manufacturers and the
government, which passed a law in 1997 allowing it to
import or produce cheap, generic versions of patented
drugs. All eyes will be on Pretoria, as the case essentially
pits the oppressed, the poor, and the developing nations,
along with the activists and the South African government,
what may be the most profitable industry in the world -- the
pharmaceutical industry.

James says:

"The South African government's argument is that lives
mean more than money and should take precedence."

"The economic imperialism being conducted by the banks
has the same effect of denying medicine to the dying, and
harks back to colonial exploitation so reviled in the last

"Talk about being between a rock and a hard place! As the
drug companies won't let Africa produce medicine cheaply,
the banks manipulate away South Africa's legitimate
wherewithall to pay for them. Meanwhile, around us,
thousands of innocents, including children, die while the
banks and drug companies trade bodies for money."

* * *

The South African government is taking on the
pharmaceutical industry. After the GATA summit, the
government may be taking on a few bullion bankers.

One more time: Why is it so hard for the mainstream media
to accept that the gold market has been manipulated?

"Tokyo, March 5 (Bloomberg) -- UBS Warburg and
Commerz Securities said they may compensate Japanese
investors after regulators found price manipulation by the
firm's traders caused 147 million yen ($1.2 million ) in
losses on derivatives."