James Turk''s GoldMoney.com featured by CBS.MarketWatch.com

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11:22a ET Tuesday, May 28, 2002

Dear Friend of GATA and Gold:

The story below from the Daily Mail in Britain is interesting
for showing that GATA's story about the bullion banks' big
short position in gold and the resulting manipulation of
the gold price is breaking through even to mainstream
news organizations. Meanwhile, the gold price seems to
be reflecting this growing awareness. One has to suspect
that the GATA delegation's work at the mining analyst
conference in London last week has had sustantial impact
here.

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

* * *

Gold sparks rush to unwind bets

By Brian O'Connor
Daily Mail, London
May 28, 2002

http://www.thisislondon.co.uk/dynamic/news/business_story.html?
in_review_id=596986&in_review_text_id=565840

Apprehension is building up in the gold market about
the big bets taken by some banks that the bullion price
would stay low. Instead, gold has soared from $278 to
$320 an ounce. Traders think it will soon reach $325,
the highest since autumn 1999.

This has caused a scramble to unwind bets against
the price. Many of these are by big mining companies
that "hedged" their future production. One of the biggest
players, Ghana's Ashanti, has been struggling for years
after running up hefty losses on hedging. More recently,
other gold companies, such as South Africa's Durban
Deep, raised new equity to help unwind their selling bets.

The miners have future gold production coming through
to offset any selling commitments.

U.S. investment banks, including JP Morgan and Goldman
Sachs, were active in the gold market. U.S. commercial
banks have held big derivative positions. If any of these
banks took big bets on the gold price staying low, they
would be doing so without future metal production to fall
back on.

One leading expert said: "The potential for a squeeze is
huge." Some say that a rise to $330 would trigger more
"margin calls," forcing gold bears to put up more funds.

Such warnings have been heard before, but the gold
market, though global, is relatively small and can easily
be swamped by huge derivative trades. Some estimate
the "short" position at 1,500 to 3,000 tonnes -- six months'
to a year's output.

With the dollar under fire and India-Pakistan war fears,
everything seems to be running gold's way at the moment.
It finished at $320.15 in London on Monday night, having
earlier hit $320.80.