Metal Bulletin features GATA chairman and some of his anonymous critics

Section:

.... It's multiple choice:

A) The Gartman Letter.

B) Tim Wood.

C) Central banks and bullion banks working
furiously together to keep the gold price
down.

* * *

Producer De-Hedging Accelerates in 2004

Business Day, South Africa
Thursday, September 16, 2004

http://www.bday.co.za/bday/content/direct/1,3523,1705567-6078-
0,00.html

Outstanding producer hedge positions were slashed by
209 tons in the six months to June, a sharp increase on
the 43 tons cut in the six month period prior to that.
This is one of the key findings of GFMS' latest report on
the gold market -- Gold Survey 2004 - Update 1.

The significant fall left the delta-adjusted hedge book
at the end of June 2004 at a measured 1,997 tons,
equivalent to 77 percent of 2003 annual mine production,
the report says.

The position represented a 9 percent drop from the
position reported at end-December 2003.

Commenting on the report, Senior Analyst Bruce Alway
said: "It's worth pointing out that, on a quarterly basis,
the pace of de-hedging accelerated progressively from
the September quarter 2003. And there's every sign
that this acceleration has continued into the second
half of this year."

He identified three main drivers behind producer
de-hedging in the first half of the year.

Firstly, hedged producers continued to reduce their
cover in line with stated goals and in some cases
exceeded these targets.

Of equal importance was merger activity.

Two major deals saw hedge books exchange hands
and, in one case, substantially cut and, in another,
completely closed out.

Finally, Alway highlighted the significance of book
restructuring, which contributed not only to an overall
drop in protected volumes but, more importantly, had
a marked impact on the makeup of the global book
itself, which was further concentrated in simple
forward sales.

On a company basis, AngloGold Ashanti's combined
hedge book was reduced by 62 tons from their
respective positions reported at end-December 2003.

Barrick reduced its outstanding position by 51 tons,
whilst a major book restructure completed by Newcrest
resulted in a 22-ton decline in their delta adjusted position.

Other noteworthy contributors to the half yearly drop in
the producer book were Placer Dome (19 tons), Avgold
(18 tons), and Cambior (15 tons).

De-hedging is forecast to hold at elevated levels of over
200 tons in the second half.

The report points out that in the light of recent events --
the announcement by Thistle Mining in August that it
had bought back around 15 tons of contracts; news
from New Zealand that Oceana Gold closed a 29-ton
position and, lastly, the news at the end of August that
Sons of Gwalia (who at end-June had a 52-ton
delta-adjusted hedge position) had been put into
voluntary administration -- the base case level of 200
tons of de-hedging could well be a minimum.

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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.GoldReview.com/

http://www.capitalupdates.com/

http://www.DailyReckoning.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.freemarketnews.com

http://www.321gold.com

http://www.SilverSeek.com

http://www.investmentrarities.com

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

http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)

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

Blanchard & Co. Inc.
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Michael Kosares, Proprietor
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178 West Service Road
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and
620 Cathcart, Suite 900
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3015 Ottawa Ave. South
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1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
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Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com

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6139 South Rural Road
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Metalguys@aol.com

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Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

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

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