South African Reserve Bank admits gold swaps, says it has none on deposit


1:24a ET Wednesday, August 29, 2001

Dear Friend of GATA and Gold:

Tim Wood of has joined the
Tocqueville Gold Fund's John Hathaway in concluding
that the gold market is probably being manipulated
by the U.S. government.

Wood writes of the "conspiracy theory" advanced by
GATA for the last three years:

"Hathaway is no longer flirting; he's hitched. The
logic he uses is compelling. The Fed has lost control
but needs to signal its authority, so it steps on
gold. There is certainly a precedent to manipulate
gold in the academic work of previous Treasury
Secretary Lawrence Summers.

"There is a sublime irony in all of this. If the
gold price is being managed, then there is no greater
testament to its importance. The behaviour of Comex
traders gives that scenario further credence by
matching it with monetary policy events. Now I'm
flirting. But, if you can follow the logic, official
denials of gold's worth are inversely true of its
intrinsic value."

Wood's essay is headlined, "Gold flounders; insiders
preach patience." You can find it at:

Click on "gold" at the top right of the home page. The
headline should appear on the second screen.

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


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