Are the gold shorts trapped or not?


9:54p ET Wednesday, April 21, 2004

Dear Friend of GATA and Gold:

Put down that gun! Or at least read some of the stuff
below before pulling the trigger.

Start with Jim Sinclair's "A Letter to the Gold
Community," which observes that everything happening
to the precious metals now happened to them during
their last big run. Sinclair's letter is, at this hour,
the second commentary down from the top of his site:

Then check out Rick Ackerman, who dismisses the
games played with silver this week and approvingly
quotes speculation about a default on the Comex:

And then there's Yiannis G. Mostrous of Wall Street
Winners, who, in commentary at CBSMarketWatch,

"Finally, a word in gold is warranted. We think the metal
-- and gold stocks -- are moving out of a 20-year bear
market and will go much higher than the majority of
market participants think. Furthermore, we view gold as
money, and our previously stated target price of $3,700
per ounce by the end of the decade is maintained here."

Thirty-seven hundred dollars by the end of the decade?
Tonight we might settle for $400 by the end of the month.
But there it is:

Then there's Chris Mallon at Motley Fool, no hotbed
of gold bugs, who calls gold "the anti-money" and
acknowledges that it may deserve a look:

"There's evidence the gold rush is for real. In a
bullish sign, the sleepy Central Fund of Canada, a
gold- and silver-bullion vault, has tripled its share
capital over the last few years. These funds go to
buy more bullion and indicate confidence in the gold
bull's staying power. With inflation on the horizon,
a pricey stock market, and global trade rebalancing
long overdue, the anti-money may no longer be a poor
place for your money."

Mallon's commentary can be found here:

And finally and most delightfully, GATA Chairman Bill
Murphy's "Midas" commentary at
quotes his contributor, commodities analyst Greg
Pickup, with the proof of the day:

"The Wizard of Fed testified today that the U.S.
economy is in a 'vigorous expansion' that has not yet
produced 'broad-based' inflation pressure.

"How can we be sure? According to Wayne Angel,
former Fed poohbah and now resident insider at Bear
Sterns, it is because the price of gold has been
'smashed.' Speaking on Bubblevision with head
cheerleader Kudlow, Angel couldn't quit talking about
gold. The price had been smashed, he averred with
his trademark smirk, and even more importantly it
had declined relative to a basket of other commodities
for 15 weeks! This was proof postive that there was no

"Angel also stated that since China had pegged the
yuan to the dollar, it functioned in the same manner as
if it was on a gold standard. Obviously obsessed with
the success of their bear raid on gold, Angel was about
to pontificate further when Kudlow broke him off and
turned to a shill from Business Week who had another
positive point."

Angel has been involved in the Fed's anti-gold
agitation before, and that he would be trotted out
to claim victory today suggests that the scheme
against gold is in desperate overdrive.

When you're done with your reading, take two aspirin,
go to bed, and call your precious metals broker in the
morning. He's running a sale.

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


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El Dorado Discount Gold
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Harvey Gordin, President
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Investment Rarities Inc.
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Miles Franklin Ltd.
3015 Ottawa Ave. South
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1-800-822-8080 / 952-929-1129
fax: 952-925-0143
Contacts: David Schectman,
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Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614

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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