Blanchard & Co. sues Barrick and Morgan, charging manipulation of gold price

Section:

11:24p ET Tuesday, December 17, 2002

Dear Friend of GATA and Gold:

Note the excerpt below from today's CBSMarketWatch
story headlined "Gold prices reach five-year high,"
which you can find here:

http://cbs.marketwatch.com/news/story.asp?guid=%7B0D2A11AE%2D1F18%
2D4FED%2D845F%2D61193458BC8F%7D&siteid=mktw

Against this backdrop, Weiss Research financial analyst
Kevin Kerr said he could envision a scenario in which
"investment banks with huge short positions [in gold] are
going to start feeling the worst kind of squeeze imaginable,
and they should have to start unwinding their short positions
in a hurry."

"The investment banks saw an opportunity to short a
commodity [gold] they felt would never regain its value,"
Kerr explained, adding that their reason was likely based
on "greed and lack of foresight."

It's a "big mistake," he said. "Now they're stuck in a big
way."

The investment banks' move to quickly unwind their short
positions could "light a fire under the price of gold," Kerr
said, prompting further price spikes.

Word of the vastly underestimated short position in gold is
getting around, thanks to the work of GATA and its friends.

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