Report on the New York gold show

Section:

1:45a Friday, June 4, 1999

Dear Friend of GATA and Gold:

Here's one more indication that the Gold Anti-Trust
Action Committee is now fully mainstream.

The June issue of Mark Skousen's "Forecasts &
Strategies" newsletter, published today, endorses
GATA's analysis of the gold market and gives us a
good plug.

Skousen doesn't get our legal strategy quite right;
we're not planning necessarily to sue governments and
central banks, since they probably would be immune
to any lawsuit, but rather private interests -- investment
houses and bullion banks -- that are colluding to carry
out the desires of governments and central banks, but
for Skousen's purposes those details don't matter much;
what matters is the explanation for the strange action in
the price of gold.

Here's what Skousen writes:

"Oil has risen 50 percent to $18 a barrel this past
month, but gold has struggled. A big reason: the Bank
of England's unexpected announcement that it intends to
sell half its gold holdings through monthly auctions
beginning in August.

"It seems odd, almost conspiratorial, that a major
central bank would announce that it was selling gold in
the future. Why would they want lower prices for their
gold?

"It appears to be a deliberate act to keep down the
price of gold for political reasons. After all, prior
to the announcement, gold and gold stocks were moving
up rapidly, and Alan Greenspan and other central
bankers may have started to worry. According to my
sources, the short interest on gold is at an all-time
high, and a dramatic rise in the gold price would doom
major producers. In any case, the psychology of gold
remains highly negative given this official attack.

"Interestingly, an organization called the Gold
Antitrust Action Committee has just been formed to sue
various governments and central banks for manipulating
the price of gold. Lawyers have to be the most creative
people on earth. I'll keep you posted on further
developments."

You can check out Mark Skousen's "Forecasts &
Strategies" at www.forecasts-strategies.com.

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

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