Gartman flees argument with Veneroso on gold price suppression


7p CT Friday, November 17, 2006

Dear Friend of GATA and Gold:

From GATA's point of view, the most interesting part of the 2006 New Orleans Investment Conference so far was today's exchange between GATA consultant Frank Veneroso of Veneroso Associates and Dennis Gartman, editor of the Gartman Letter. They had been invited to discuss, among other things, whether the gold market is manipulated.

Veneroso remarked that "managed" might be a better word than "manipulated," even as his smile indicated that those on the receiving end of the "management" might not be able to tell the difference.

The manipulation of the gold price isn't done by financial houses dealing in gold but by the central banks, Veneroso said, adding that it is done "in a formal way." He noted the June 2005 speech of William R. White, head of the monetary and economic department of the Bank for International Settlements, who admitted that central banks intervene in the currency and gold markets:

Veneroso also cited the comment made in 1999 by the governor of the Bank of England, Edward A.J. George, to Nicholas J. Morrell, chief executive of mining house Lonmin PLC, confirming that there was aggressive intervention by central banks to suppress the gold price following the price spike prompted by the first Washington Agreement on Gold that year:

Veneroso said he had received from an official of a major central bank complete confirmation of this surreptitious intervention against gold.

Gartman's response to Veneroso and the gold price suppression issue was simply to default. "Who cares?" Gartman said. "The damn stuff is going up." He added that he was "in awe" of Veneroso's research and that done by GATA Chairman Bill Murphy but considered it all "a waste of time."

Unfortunately a fire alarm went off soon after Gartman made these remarks and the conference had to be evacuated briefly before anyone had the chance to explain to Gartman, if he really didn't know already, that anyone invested in something that might be valued at a much higher price but for surreptitious government intervention in a supposedly free market might have PLENTY of reason to care.

The exchange between Veneroso and Gartman suggested again that the gold price suppression issue simply can't be discussed honestly with most people who would be part of the world's financial establishment, the evidence of that suppression having become not only so overwhelming but also so dangerous to the establishment.

It was going so badly for Gartman that maybe someone from the Federal Reserve or the Treasury Department pulled the alarm to rescue him.

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

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at the
2007 Vancouver Resource Investment Conference
Vancouver Convention and Exhibition Centre
Sunday and Monday, January 21 and 22, 2007

Admission is free for those who register in advance. The conference has arranged discount rates at the Pan Pacific Hotel adjacent to the convention center.

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