Reg Howe: Gold derivatives -- Chinese torture


12:16a ET Tuesday, June 12, 2007

Dear Friend of GATA and Gold:

Gold price-fixing case litigator Reg Howe, proprietor of and consultant to GATA, has reviewed the latest gold derivatives figures reported by the Bank for International Settlements and figures that the Western central banks are short at least two years of world gold production. Howe also figures that they're not eager to get it back.

Howe writes that the most likely explanation for current low gold lease rates "is that they are effectively rollover rates for essentially past-due gold loans that can be neither thrown into default nor repaid without serious risk of unacceptable consequences for the world financial system."

Howe's new commentary is titled "Gold Derivatives: Chinese Torture," and you can find it at the top of the Golden Sextant home page here:

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

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at the
World Gold, PGM, and Diamond Investment Conference in Vancouver, British Columbia, Canada
Sunday and Monday, June 17 and 18, 2007

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