Analysts quoted by Washington Post on G-7 expect dollar to keep falling


3:10a ET Sunday, February 8, 2004

Dear Friend of GATA and Gold:

GATA has endorsed and will publicize and underwrite the
work of silver market analyst Ted Butler, who for four years
now has been working to liberate the silver market just as
GATA has been working to liberate the gold market.

If you're not familiar with Butler, you can find an archive of
his silver market commentaries at the Internet site of
Investment Rarities Inc., the Minneapolis coin and bullion
dealer that, in addition to supporting Butler, has been a
supporter of GATA as well:

Two recent commentaries by Butler are appended. His main
effort now is to persuade the New York Mercantile Exchange,
its Comex division, the U.S. Commodity Futures Trading
Commission, and New York Attorney General Eliot Spitzer to
act on the extensive evidence of manipulation of the silver
market that Butler has assembled.

As GATA has demonstrated with gold, Butler has shown that
there is an overwhelming and unsupportable short position in
silver. The silver short position, Butler has found, has been
maintained and perpetuated by a small number of traders only
because the exchange and the futures regulators have failed
to enforce ordinary trading regulations, such as reasonable
position limits.

GATA believes that the silver short position, like the short
position in gold, has been at least encouraged by the U.S.
government, by virtue of the failure to bring market-
protecting regulations to bear. But since the Western central
banks that have underwritten the gold short position by leasing
their gold reserves are not known to have access to large
silver reserves, GATA suspects that silver may be the weaker
point of the whole price-suppression scheme in the precious
metals. Hence the advantage in getting investors to seek an
investigation of the silver market by the NYMEX, the CFTC,
and New York attorney general.

A hundred years ago gold and silver were enemies in the
biggest political issue of that time in the United States
-- the money issue, the issue of the gold standard vs.
bimetallism. Today gold and silver must stand together to
offer the world an honest, independent, and, if necessary,
entirely non-governmental monetary alternative to the
rapacious and imperialistic financial system that prevails.
The goals of this struggle are free markets and free people.
GATA hopes to pursue them by advancing Butler's heroic work.

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

* * *

Where Are the Watchdogs?

By Ted Butler

One of the hallmarks of the silver manipulation has been
the lack of public acknowledgment, in establishment circles,
that even the possibility of a manipulation existed. I ask
myself continually, "Where are the watchdogs in the news
media and regulatory agencies?" (I know GATA has these same
feelings about gold.)

The media and regulators have been told, in no uncertain terms,
just how the silver manipulation is conducted, through leasing
and Comex naked short sales. They have been told about an
Internet petition with almost 2,400 names of regular people who
know thatsomething is wrong in Comex silver. The regulators
have been unable to address the question: How can silver even
be considered to be in a free market when there is a structural
deficit, confirmed by declining inventories, with flat prices. And
why is the Comex short position in silver, alone among all
commodities, greater than world production and many times
greater than visible inventories?

Since the regulators, media, and establishment analytical
community can't possibly answer these questions, they ignore

While their silence is infuriating, it requires the questions to be
asked again until they do answer.

Fortunately, we are blessed with the ability to continue to ask
these questions, thanks to the Internet. Even more important,
we are blessed to live in a developing regulatory environment
that will eliminate the possibility of those who should have
done something about the silver manipulation from ever
declaring, "We didn't know." Nowadays, if corporate officers
can be shown to have been notified of a serious problem and
they don't address it, they can be held personally and criminally

If you want to make sure that those responsible for dealing with
the silver manipulation can't claim ignorance as an excuse, you
might want to do what I have done and help make sure they know.
Send a short e-mail, professional and to the point, asking the top
people at the Nymex/Comex to end the silver manipulation and
uneconomic short selling. The more they are notified, whether
they act now or not, the more they will be on the hook later.

The more contacts the better, and there's no reason to be rude.
Your e-mail someday could be used as evidence for prosecution
of those who have refused to do their jobs. Feel free to use
anything I've written. Here are the addresses:

Vincent Viola, Chairman
New York Mercantile Exchange

Michael Steinhause, Vice Chairman
New York Mercantile Exchange

Christopher Bowen, General Counsel
New York Mercantile Exchange

Thomas Lasala, Vice President
and Chief Regulatory Officer
New York Mercantile Exchange

You can find an Internet message form for New York
Attorney General Eliot Spitzer here:

* * *

Expose the Shorts Who Don't Have the Silver

By Ted Butler

One key to ending the silver manipulation is to identify and
expose the concentrated commercial dealers who dominate
the price with naked short sales. Expose them and the
manipulation will be over. There is no way that they could
ever justify the years and years of expertly-timed naked
short sales that have manipulated prices. They don't have
the real silver. The Commodity Futures Trading Commission
has jurisdiction over them. That the CFTC protects them is

The eight largest Comex traders alone are net short more
than seven times the annual silver mine production of the
United States, the fourth largest producer of silver. You can
be sure that CFTC Chairman James Newsome, who came
to his agency from the cattle industry, would never allow
eight traders to be short anything approaching total U.S.
cattle production, to say nothing of seven times U.S. cattle

I have provided a fair solution that will avoid any threat of a
delivery default and possibly eliminate the silver manipulation
problem at the same time. In fact, it would work in all markets.
The CFTC must require all longs in futures contracts to have
the full cash value of their contracts deposited in their accounts
by first delivery day. All shorts must, likewise, must be
required to have Comex warehouse receipts deposited by first
delivery day. The CFTC is deathly afraid even to debate this
because the agency knows that the idea has great merit.

If you agree, tell them:

And sign the silver petition:


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Centennial Precious Metals
3033 East 1st Ave.
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Investment Rarities Inc.
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Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889

178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
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Fax: 514-875-6484

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
Ed Lee, Proprietor

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
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

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
Dr. Fred I. Goldstein, Senior Broker



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