CBSMarketWatch''s Thom Calandra reports from New Orleans Investment Conference


10:14a ET Thursday, November 7, 2002

Dear Friend of GATA and Gold:

Just moments before Reuters dispatched the
story below, a Dow Jones reporter reached
GATA Chairman Bill Murphy here at the New
Orleans Investment Conference to ask about
rumors that trucks of gold had been seen
speeding from the New York Fed to the
vaults of J.P. Morgan Chase. The rumor
can be only a metaphor, of course --
Morgan Chase doesn't run its gold window
quite like that -- but the important
thing is that the sense that the authorities
are doing some funny business with gold is
getting close to overwhelming. We're doing
our best to heighten that sense.

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

* * *

J.P. Morgan denies gold loss rumors, stock down

NEW YORK, Nov. 7 (Reuters) -- J.P. Morgan Chase & Co. Inc.
said on Thursday that rumors it had suffered large losses on
gold trades were "false and irresponsible," as the rumors had
damaged its stock price.

J.P. Morgan shares, a component of the benchmark Dow
Jones Industrial Average, dropped to a low of $20.55 on
Thursday before recovering somewhat to trade down 4.6
percent, or $1.01 a share, at $21.05. The stock fell on
rumors arising in Europe that the No. 2 U.S. banking
company had lost between $17 billion and $70 billion on
gold trades. A spokesman denied the rumors and analysts
also discounted them.

"It's (circulated) at least three or four times this year, and
it's always out of Europe," UBS Warburg analyst Diane
Glossman said of the rumor. "They should please come
up with something more creative next time than recycling
old rumors."