Rep. Paul''s Monetary Reform and Accountability Act is H.R. 3732

Section:

6:30p ET Saturday, July 6, 2002

Dear Friend of GATA and Gold:

You might be interested in the following
correspondence about the commodities
exchanges.

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

* * *

Dear GATA:

I'm a proud member of the GATA army, and I've
been following your Internet postings for
several years. Tonight I'm extremely
frustrated, as usual, and I feel compelled to
write you.

Although I haven't sent GATA any money to
date, I've supported your cause by spreading
the word. That's been my contribution, and it
hasn't been trivial. I hope that you realize
that many GATA members may not support you
directly with financial contributions, but we
participate by networking your ideas. I've
told many people about what's going on, and
have engaged in many conversations to support
your cause.

Anyway, tonight I've come to an important
conclusion, which you probably already have
reached: There's nothing that people like me
can do in the paper game to end the
manipulation; we have no control. The paper
side of the equation is going to fail like a
square wave; there will be no gradual changes
that take place in the gold and silver
markets. The upward trend we've all gotten so
excited about in the past few months doesn't
matter at all. Higher-level systems -- the
U.S. government -- will put every resource
into fighting the upward trend, and they
won't make any compromises.

What I'm getting at here is that there's no
way to win by purchasing calls as part of an
investment strategy. There's only one way
that the metals war will be won: in the spot
market. The liquidity must dry up.

As long as the manipulators can supply
sufficient liquidity to allow the spot market
to function, they'll maintain control with
their paper games. I believe that the whole
global economic system will eventually crack
at the same time, and there won't be any
profits to be made on call options; there
will be only defaults.

I for one will not be purchasing any more
call options while hoping that the system is
still somehow a little bit free. It's not the
least bit free anymore, and all I'm doing is
providing capital for those in control to
purchase real metal.

Keep up the good work. I read all your
postings. Please continue stressing to your
readers the purchase of real metal.

Sincerely,

J.I.A.

. . . . . . .

Dear J.I.A.:

While we of course follow closely the futures
price of gold, we couldn't agree with you
more. The futures price is where gold and
silver prices are rigged, where real metal is
overwhelmed by paper. Why people would buy
gold and silver futures in light of the
blatantly manipulative price action of the
last few weeks is beyond us, unless, of
course, they are covering short positions or
have found a way of buying in New York, where
the price is regularly suppressed, and
selling in other markets around the world,
where it tends to rise.

We may hope that the price manipulation on
the commodities exchanges will fail of its
own increasing brazenness, as fewer people
are willing to take the long side of trades
there. In the meantime, as that enigmatic
commentator at www.USAGold.com, Friend of
Another, observed some time ago, the "sport
of kings" will remain a matter of noisily
selling paper while quietly buying real gold.
Maybe we all should be playing that sport
until times change.

In any case the futures price remains
important and GATA's target because of its
intimidation value. With ever-larger fog
clouds of paper, the futures price induces
producers to think that there is no shortage
of their product and that they must sell it
at or below subsistence levels. This
intimidation might go on forever if it is not
exposed, so we keep at it.

Thanks so much for your thoughtfulness and
support.

With good wishes.

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

------------------------------------------

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

http://www.theminingweb.com/

http://www.gold-eagle.com/

http://www.kitco.com/

http://www.usagold.com/

http://www.321gold.com/

http://www.GoldSeek.com/

http://www.goldenbar.com/

Subscription site:

http://www.lemetropolecafe.com/

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

Centennial Precious Metals
3033 East 1st Ave.
Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Miles Frankl Ltd.
3601 Park Center Building
Suite 120
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.buycoin.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
figoldstein@buycoin.com

------------------------------------------

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

http://www.gata.org/creditcard.html

By GoldMoney:

http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

By E-Gold:

http://www.e-gold.com
Gold Anti-Trust Action Committee Inc.
Account number 110915

Donors of $750 or more will, upon request, be
sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.