James Turk''s analysis: Gold is breaking out of flag pattern

Section:

12:15p ET Saturday, March 20, 2004

Dear Friend of GATA and Gold:

Prompted by Ted Butler's appeal to silver mining company
shareholders to urge company managements to start holding
cash balances in silver, thereby tightening the physical
market and countering the market-manipulating short
sellers, GATA's friend Gus writes:

* * *

"I would add one item to Ted Butler's list of things that
both the silver and the gold miners need to do. Nearly
every time I get a proxy solicitation to vote for this or
that proposal or an annual statementfrom one of the
precious metals mining companies whosestock I own, the
name of J.P. Morgan Chase shows up in the literature.

"If the people who run the gold and silver companies would
get the members of the Cabal off their boards of directors,
it would go a long way toward solving the problem."

* * *

Butler himself writes sardonically on the Gold Forum at
Kitco this week:

* * *

"Normally I don't post on silver up days (why bother?),
but this Bloomberg article is too good to let slip by:

http://quote.bloomberg.com/apps/news?pid=nifea&&sid=aaJSEYbOXwSM

[The article quotes silver users as contemplating finding
cheaper alternatives to silver in manufacturing.]

"If you read closely enough, you can just about feel the
pain of the users, who have come to believe that it was
their birthright to have sub-$5 material. Funny coincidence,
but I think every one of the bears quoted here is in the
Silver Users Association.

"So the big threat is substitution. Why complain? Just
do it.

"The real great thing is that every time these users open
their mouths to complain, we learn of more uses for silver.
Anti-freeze and adhesives? Those are new ones on me.

"What's really great is that the shorts and users are not
threatening to bring lawsuits against the longs, as they
did in 1997-98. This suggests that this rally is not about
big speculative longs but genuine physical tightness.

"You also must remember that these users are probably the
big lessors of silver, so their pain is not confined to
paying up for raw material but also to the consequences
of being short physical as well.

"Hope it works out for them. Right."

* * *

Friends of GATA and gold and silver, please post these
dispatches around the Internet and, to bust the market
manipulators, buy and hold real metal -- not just
mining shares.

Real metal is conveniently and economically obtained
from many dealers, including especially those listed
below, supporters of GATA who have been recommended
by GATA members, and from gold depositories like
GoldMoney.com.

Buying and holding real metal -- and remonetizing
them in trade, as GoldMoney does -- are probably the
highest duties anyone can perform for the cause of
free markets and personal liberty.

If you are confident from the information GATA has
provided over the years that a generational change
in the financial and metals markets is under way,
and if your perspective extends more than a few
weeks ahead, you will never go very wrong for long
in holding real metal, never go wrong at all in
undertaking in regard to investment in real metal
what is called dollar-cost averaging.

Indeed, for a couple of years now the appreciation
in gold and silver prices has far exceeded interest
paid on major currencies.

To disparage gold and silver, it is often said that
they don't pay interest. Of course they don't,
because, as is said in their defense, they don't
have to. Today what doesn't pay interest is the U.S.
dollar, and other currencies aren't much better.

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

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

Free sites:

http://www.jsmineset.com

http://www.cbs.marketwatch.com

http://www.mineweb.com/

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

http://www.kitco.com/

http://www.usagold.com/

http://www.GoldSeek.com/

http://www.capitalupdates.com/

http://www.goldenbar.com/

http://www.silver-investor.com

http://www.thebulliondesk.com/

http://www.sharelynx.com/

http://www.mininglife.com/

http://www.financialsense.com

http://www.goldensextant.com

http://www.goldismoney.info/index.html

http://www.howestreet.com

http://www.depression2.tv

http://www.moneyfiles.org/

http://www.howestreet.com

http://www.minersmanual.com/minernews.html

http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html

http://www.goldcolony.com

http://www.miningstocks.com

http://www.mineralstox.com

http://www.321gold.com

http://www.SilverSeek.com

http://www.investmentrarities.com

http://www.kuik.com/KH/KH.html
(Korelin Business Report -- audio)

Subscription site:

http://www.lemetropolecafe.com/

http://www.hsletter.com

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

Ted Butler silver commentary archive:

http://www.investmentrarities.com/

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

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

El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net

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

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.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 Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://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.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

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

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