Why GATA is at the middle of things


1a EDT Saturday, September 18, 1999

Dear Friend of GATA and Gold:

Here's the latest "Midas" dispatch at
www.lemetropolecafe.com from GATA Chairman Bill
Murphy, describing his expedition to Vancouver, British
Columbia, at the invitation of Normandy Mining
Chairman Robert Champion de Crespigny.

It's a strange story and I urgently request the
assistance of our friends in Australia in bringing it
to the attention of the news media there. If you have
any contacts, please share this with them or send me
any email addresses of people in the Australian
financial press. There's a good story here for anyone
in the financial press in Australia who might be
willing to make a phone call or two. It certainly will
help our cause.

Please post this as seems useful.

Gold Anti-Trust Action Committee Inc.

* * *


By Bill "Midas" Murphy

September 17, 1999
Spot Gold $255.30 down $1.30
Spot Silver $5.09 down 2 cents

Nine months ago the Gold Anti-Trust Action Committee
developed an action plan and we have stuck with it. It
was patterned after the "enveloping horn" strategy of
Shaka, the famed South African Zulu warrior of old.
Shaka had his warriors line up in a diamond formation
that penetrated his foes from the point of the diamond;
then the left and right flanks flared out, almost
encircling the adversary. The back end of the "horn"
was left open for the foe to retreat through.

GATA's "point" was retaining Philadelphia's Berger &
Montague, one of the most highly regarded anti-trust
law firms in the United States. We felt they could help
us greatly in our investigation of the manipulation of
the gold market. Our retaining them let the financial
world know we were serious.

The second step was to send out the left flank by
alerting the press of our findings regarding collusion
in the gold market and to take these findings to
Congress. It is our opinion that the gold borrowings,
which are facilitating the market manipulation, have
become so large that they now have become a danger to
the world financial system. In addition, the tactics
employed by certain bullion dealers to hold down the
price of gold appear to violate the Sherman and Clayton
anti-trust laws.

I went to Washington on behalf of GATA and now have
relationships with the banking and economic committees.
As far as the press goes, I have met with
representatives of four wire services, The Wall Street
Journal, and others. Many members of the world press
receive www.LeMetropoleCafe.com material and are
continually updated on what we are learning and
observing about the machinations of the gold cartel.

Step 3 was to unleash the right flank. We felt that
after building a record on this issue, the gold
companies would begin to get behind GATA -- a volunteer
organization that is fighting for them, their
employees, and their shareholders. A few mining
companies have given us their support and we are very
thankful for that. We just need many more of them. We
believe that if one of the major gold-producing
companies gets behind us, many others will soon follow.

The trick is to find a leader with guts and character.

Many months ago I learned through an Australian source
that Barrick Gold of Canada and Normandy Mining Ltd. of
Australia killed a well-developed plan for the minting
of a millenium gold coin that would spur gold demand.
Were they both in the bullion dealer/gold short camp?
Then, right after the Bank of England's announcement of
its gold sale plans May 7, the chairman of Normandy
Mining, Robert Champion de Crespigny came out with a
statement for the press that included the following:

"The Bank of England's gold sales could have a positive
impact for the precious metal, accelerating the closure
of weaker high-cost mines around the world... . This
gold will keep on coming out, it will come out at
market price, and the worst of production will drop
off.... The commentators that are saying they expected
someone to bid above gold -- that's an absurd thing for
this amount of gold. It is very much in line with what
you would expect if you knew the industry or this

Champion de Crespigny also said he was not opposed to
the Bank of England's method of sale, a pre-announced
auction, saying the gold price was "strongly affected
by sentiment and could be badly hit by sudden and
unannounced large selloffs." "We need time to get used
to this bidding-type process, which I think it is not a
bad way to go because it is exactly the same (way) as
the government sells treasury bonds." "I don't see it
as a disaster at all."

I was greatly dismayed about these comments and I
chastised Champion de Crespigny in my commentary. His
remarks matched with what my sources had told me about
his killing the millenium coin plan.

Then, out of nowhere in August, came the following,
which I included in my Midas commentary:

"Robert Champion de Crespigny was interviewed on the
Australian Broadcasting Company's late-night television
talk show, 'Lateline,' along with Haruko Fukuda, chief
of the World Gold Council, and Tony Warwick-Ching, a
consultant with Virtual Metals, a company that analyzes
the precious metals market.

"This is a summary of what he had to say:

"* Investment banks are 'making a fortune manipulating
the gold market."

"* Many important investment advisers have 'substantial
conflicts of interest' when they advise their clients
against gold.

"* The price of gold will revive because 'in the end
we'll have a much more transparent market.'

* "The Bank of England is selling its gold against the
wishes of the British people.

"* The price of gold will strengthen quickly when
people see what's going on in the market and the market
becomes more open.

"* 'I'm certain gold's going up. It will be as quick as
oil was recently."

It appeared that Champion de Crespigny had had some
sort of epiphany. Perhaps he would "champion" our

For that reason I called Normandy's president, Colin
Jackson, to determine if I could meet with his
chairman. Colin was a delight to talk to. We discussed
that possibility and I sent him the document that I
sent to Sen. Phil Gramm, chairman of the Senate Banking
Committee. Colin gave it to Champion de Crespigny to
read. I told Colin I would go just about anyplace to
accomplish GATA's objectives.

Initially, Colin thought I could meet Champion de
Crespigny on two dates in Miami in early September or
later in the month in New York. Great, I thought, we
are going to get the ball rolling.

About a week later and a week ago, I received a phone
call from Colin who told me plans had changed and I had
three choices: 1) Fly to Santiago, Chile, to meet
Champion de Crespigny; 2) meet him in a taxi cab in San
Francisco; or 3) meet with him in Vancouver, British
Columbia, after he arrived at 9 p.m. on a charter
flight. That is how busy his schedule was. But, happy
to do whatever it took to kick in the right flank of
our battle plan, I decided to fly to Vancouver.

I left this last Tuesday morning and, while the trip
would be costly and take me away from my daily work, it
had to be done. The manipulation of the gold market is
becoming more obvious by the day as the price of oil
heads for $25 per barrel, copper and aluminum prices
make new highs, and bond yields remain above 6 percent
and look like they are headed for 6.5 percent amid
credit and inflation pressures. All of this and still
the gold mining companies remain silent about the
orchestration of the low gold price while the industry
is being slaughtered like lambs by the bullion dealers
and certain government officials.

Tuesday was a beautiful day in Vancouver and
illuminated this beautiful city. I arrived early in the
afternoon at the Delta Hotel at the airport. The
afternoon was mine to kill, as most of the executives
at Placer Dome would not be available because of a
board meeting in Toronto. I also had just heard that a
changeover of Placer Dome leadership was imminent. So I
took off for the Richmond mall to get a haircut and
pick up a pair of gold (plated) cufflinks in
preparation for my meeting with the Normandy chairman.

While travelling about the rest of the city, I could
not help but reflect on a promise I had made to an
Australian miner. He sent me an email right after the
formation of GATA, asking me to help him and the other
20,000 Australian miners who had been out of work for
two years. I'll never forget what he said: "Somebody
has to do something."

It put a smile on my face to reflect on my promise to
him. I hoped that when I returned to Dallas I would be
able to let him know that somebody really was doing
something and had taken our message and his plea to a
leader of the Australian mining industry.

When I returned to the hotel there was a message for me
on the telephone. It was from Champion de Crespigny's
secretary, so I called her. She told me that she had
tried to reach me in Dallas and now called to the hotel
in Vancouver to tell me that the chairman was going to
be delayed and was sorry but he could not meet with me
now. She then told me he would not be arriving until 9
p.m. I then told her that Colin Jackson had told me
that was when he was scheduled to arrive in the first
place, so this was no problem for me at all. She seemed
a bit taken aback and then told me she would contact
the chairman and call me again.

Off I went to dinner at the adjacent Pier Restaurant to
meet with three cafe members who came by to say hello.
Great guys. We hit it off wonderfully and I went back
to my room at 8:45 to organize the material I had put
together to present to Champion de Crespigny.

The message light was blinking. I was to call

The chairman's secretary then told me that the charter
flight was going to be delayed and that Champion de
Crespigny would not arrive at the Vancouver Airport
until midnight and, again, that the chairman was sorry;
maybe we could get together some other time. I'll never
forget one other thing she said -- it was something
about how this is not how they normally do business. (I
thought: I should hope not).

Well, I told her, "He has to check into the hotel. I
will be there just to say hello, introduce myself and
chat as he checks in. That way he will know me when we
speak in the future." She was silent.

I left a message at the front desk for the chairman
that I was in Room 924. At 11:30 p.m. I went down to
wait for him and sipped a "cold one" in the lounge. I
had direct view of all those coming in. It would not be
a big deal to spot anyone, as the Delta Hotel is not a
big one and hardly anyone was arriving at at this time
of night.

An hour went by and I went to the front desk and asked
if the chairman had checked in.

To my astonishment, the clerk said, "Yes, at 22:32."

At this point my blood was starting to boil and I was
not a happy camper. I thought: How could anyone be so
rude? I had spent $2,000 and traveled more than 2,000
miles to try to help this man, his company, his
shareholders, and employees, and he won't even
acknowledge me, even though his own associate set up
the appointment for me.

I have met many Australians over the years and have
found them to be the most delightful people. Fifteen
years ago I went to Auckland, New Zealand, with my
friend, the famed New Zealand Olympiv runner Rod Dixon.
It was the year after he won the New York Marathon.
After visiting that lovely city and downing some
"brewskees" with him, I took off for Sydney and the
Great Barrier Reef. The trip was a blast and so were
the Aussies I met.

That is why I was so stunned at Champion de Crespigny's

I had a breakfast meeting with six more Cafe members at
8 a.m. Since the chairman wasn't supposed to leave
until 7:45 a.m. (although at this point I did not know
what to believe about this anymore), I hung around the
front desk at 7:15 in case I might hear someone with an
Australian accent. I asked the front desk if the
chairman had checked out yet and was told he hadn't.
But after waiting a while longer, I left to meet some
more engaging Vancouverians.

Then it was back to the airport and a long trip back to

As soon as I returned on Wednesday night, I phoned
Colin Jackson in Australia. I have not heard back from
him yet.

What was Vancouver all about? I would like to say I am
bewildered. But my first reaction was the same as the
reaction of my associates. That is, someone from the
bullion dealer camp got to Champion de Crespigny and
told him not to meet me. What else makes any sense?
What kind of man would do that to someone trying to
help him?

What is more disturbing is that this trip was a secret.
Yes, I had told the Cafe that I was going to Vancouver,
but I did not say I was going there to see a gold
producer, much less Normandy Mining. The question then
becomes: Is my phone tapped or are my emails being
monitored? I do not wish to run with that one too far,
but the thought of it all is disturbing. I was warned
by GATA's attorneys last March to expect that kind of

As I ponder my strange journey to Vancouver, this news
story has just been sent to me:

"London, Sept 17. (Reuters) -- Central banks have been
misguided in lending out their gold reserves, allowing
bullion banks to make large profits and opening the
door to hedge fund short selling, Normandy Mining
Chairman Robert Champion de Crespigny said on Friday.

"'I think central banks have allowed the middlemen to
make a fortune. That is my first point,' de Crespigny
told Reuters at a mining equities conference,
explaining the term 'middlemen' as a reference to
bullion banks.

"'The second one is how a central bank could be so
stupid to lend to a hedger who is only going to sell
it,' he added.

"Gold lease rates have been tightening since May, when
Britain announced plans to sell more than half its 715
tonnes of gold reserves, unleashing a wave of producer
and hedge fund selling that knocked more than 10
percent off gold prices and soaked up much of the metal
available for loan.

"Hedge funds and miners usually profit from the
difference between gold and money lending rates while
those central banks in the market get some return on a
reserve asset that costs money to store.

"De Crespigny said that while central banks were right
to lend their gold to miners, they erred in lending it
to funds.

"'If I was a lender of gold, I would a least make sure
that people owned the damn stuff,' he said.

"High lease rates made it difficult for miners to
establish new hedge positions, he added.

"'If I were a new hedger at these prices I would be
terribly concerned,' he said."

Chairman Champion de Crespigny: I trust you will be as
bold and forthcoming with the Australian press when
they query you about the Vancouver Affair. One has to
wonder what stands behind these words of yours. It
appears that you have established a pattern of talking
and doing one thing one day, then talking and doing
just the opposite another day. What is what with you?

Meanwhile back at the ranch, I have two other ideas
that could bolster the effectiveness of our "right
flank" battle plan to bring the gold producers aboard
in their own defense.

The first is to talk to Bobby Godsell, the chief
Executive Officer of the world's largest gold-mining
company, Anglogold Limited. One of the Cafe members I
met in Vancouver has had email correspondence with
Godsell. Upon hearing of my broken appointment with
Champion de Crespigny, he immediately sent an email to
Godsell. Godsell responded that he would like to meet
me to discuss GATA's issues and that he plans to be in
the United States in six weeks. I will be calling him
soon to see if a meeting can be arranged.

The other sterling opportunity for GATA is to meet
executives from most of the world's largest gold
producers at the Denver Gold Group Conference one month
from today in Denver. Surprisingly, four of the gold
companies that will be there have made some
contribution to GATA. So have some of the money
managers planning to attend. They want GATA represented
at the conference to let the gold producers know what
we are doing and we can do for them.

Michelle Stelle runs the Denver Gold Group and has done
a marvelous job in developing it. I did a favor a for
her a couple of years ago when she needed a speaker; I
arranged one for her. So I was shocked when she told me
that she not only could not let me address the group,
but could not even invite me to attend either.

This makes no sense at all until one realizes that
"Hannibal Lecter," the famed bullion dealer, will be
there along with many other Hannibal Cannibals. There
they are again -- just more evidence that the bullion
dealers are in full control of the gold market. It is a
sad state of affairs. If gold shareholders knew the
extent of what is going on here, they would be
outraged. Why invest in gold companies if they are
going to allow this to continue?

I have made a reservation at the Westin Hotel in Denver
anyway and requested a hospitality suite, but after the
Vancouver Affair I have to think it through whether I
should attend. I just may have to stay focused on
people who care about what is occurring.

Twenty thousand out of work Australian gold miners and
millions of others are counting on somebody to do
something. GATA has no intention of letting them down.