Panic buying in Australia


12:05a EDT Tuesday, October 4, 1999

Dear Friend of GATA and Gold:

If this comes to you as an attached file and you don't
like downloading those, as I don't, you can read it on
the Internet at:

A few hours ago GATA Chairman Bill Murphy issued this
letter to his subscribers at,
to GATA, to all friends of gold -- and to all enemies
of gold too.

As we at GATA watch the gold wildfire spread across the
world, against all the wisdom of the financial and
political establishment and the conventional news media
(even as it singes those same people), we salute the
hundreds of you who have used the Internet to liberate
the truth behind the gold market. We could not be
accomplishing ANYTHING without the Internet and your
help, could not be accomplishing ANYTHING by
conventional means -- by ordinary publishing on paper
and ordinary mail delivery around the world. No, that
would have been too cumbersome and expensive and we
would not have known where or how to start.

But the Internet has been as liberating in our age as
the Gutenberg Bible and his movable type came to be 500
years ago. Thanks to the Internet, no power on Earth
now can stop anyone from getting his message out, nor
stop anyone from associating and communicating with
like-minded people anywhere, instantly.

But I beg you to understand that the struggle to
liberate gold, to restore its rightful place in the
world economy -- as the eternal gauge of government
currencies and as a universal and competitive form of
money -- is only beginning. Those who have suppressed
the price of gold through collusion, subversion of
markets, and abuse of government power will have to act
dramatically against it in the next few days to
preserve their control of the world economy.

We plan to fight them to the end.

So we need your help more than ever now.

If you like what we've been doing to educate people and
liberate the price of gold -- and, may I add, doing for
free, since our committee members are all volunteers --
won't you please consider making a financial
contribution? Especially consider a contribution if the
revival of your precious metals shares permits you to
afford one now.

Because of our educational and social-justice purposes,
GATA is a tax-exempt organization in the United States
under Section 501-c-3 of the Internal Revenue Code. So
contributions to GATA are tax-deductible in the United

Contributions are used to publicize GATA's cause;
support our the research and investigation of our law
firm, Berger & Montague of Philadelphia; gather
information; and educate the public about the gold's
crucial monetary function.

Contributions may be mailed to the Gold Anti-Trust
Action Committee Inc. in care of John D. Meyer,
Treasurer, at Box 885, Great Barrington, Mass. 01230

To build excitement for our cause and our fund raising,
GATA has produced a print of the colorful GATA painting
that represents us on our home page at

The GATA painting is the work of Absolut vodka artist
Alain Despert. The prints made from it are of the
highest quality: a Fine Art Giclee print on Hand-Torn
Arches paper, 20 1/2 inches by 32 inches, signed and
numbered by the artist.

We will ship a print of the GATA painting to donors of
$500 or more, including those whose multiple donations
reach that amount cumulatively.

If you want a print, please tell us so and include an
additional $25 for shipping to addresses in the United
States and Canada and an additional $50 for shipping

And if you send a contribution, please let us know if
you would like to have your name and hometown placed on
the GATA List of Honor at

Now on to Midas Murphy's latest dispatch.

Please post this as seems useful.

Gold Anti-Trust Action Committee Inc.

* * *


By Bill "Midas" Murphy

10p CDT Monday, October 4, 1999

On behalf of the Supreme Allied Internet Headquarters,
I thank our Internet Field Commanders for all the
intelligence they have provided our forces. The Axis
troops have big money, influence, and power. We have
the truth and the Internet on our side. What you are
all doing is changing history.

The gold market has been manipulated and orchestrated
down to an unnaturally low level. Many of you all know
that now. The bullion dealer camp that has participated
in this manipulation has fed bearish propaganda to the
press, which they have eaten up because of the
reputation of the sources that fed them. Yes, the
establishment has spread disinformation to foster its

It is either that, or some of the most highly regarded
financial institutions in the world ALL have much less
brainpower than they let on. Could ALL these MBAs and
hundred-millionaires be that ignorant of the real
fundamentals of the gold market? Except for Lee Ann
Baker of Solomon Smith Barney, I can't think of another
member of this crowd who did not indulge in the bearish
diatribe. By the way, Lee Ann has been a fan of Frank
Veneroso for some time.

But enough of that. As you know, for many, many months
I have reiterated that a highly placed field commander
has been telling me that that the bullion banks and
central banks have written massive numbers of naked
calls (options) around the $315 strike price level.
There is no telling how high the price of gold could go
if that price point was breached. That is why I spent
this weekend preparing a "Midas" essay that explained
the gold dynamics for you as best I could. My

I have just received three emails from Internet field
commanders. It is superb intelligence. December Comex
Gold is trading at $330 right now -- up $12 over the
Comex close. More importantly Hannibal Lecter and other
"Hannibal Cannibals" were seen buying heavily late in
the Comex session.


Not only are hedge funds that have borrowed gold in
deep trouble, but these bullion dealers have written
all sorts of structured deals for producers to enhance
their forward sale price. That is why many of the
producers have reported (in glowing terms) what
geniuses they were for getting $60-$100 higher a price
than the then spot price for their future gold

The Hannibal Cannibal bullion dealers advised them to
go for it. After all, gold was never going up,
according to these brilliant soothsayers.

The hubris of these arrogants goes off the charts. They
conned the gold producers, the press, portfolio
managers, and just about everyone.

I can present you the following facts about today's

Spot gold was trading $314.50 bid going into the Comex
close today when someone bought so much gold that it
rallied to around $316, violating the key $315
resistance level that I have been telling you about for
a long time. The Hannibals were seen buying in size
late in the day. The gold lease rates ended up at a
hefty 5-6 percent for the day. Borrowers of gold are
being slaughtered just as they were at the end of the
yen carry trade. The yen they could buy back. Gold?

We believe the gold loans are more than 10,000 tonnes.
Annual mine supply is only 2,550 tonnes. How do they
get out of their gold loans? Many thousands of naked
calls are written on top of that. How will they be
covered? This is what I told 3 Congressional Committees
in Washington this past spring. I urged them to look
into the gold loan situation before big problems

Many of you know that there are a gazillion 390 Dec
Comex calls outstanding. We know for a fact that most
of them are uncovered calls. A well known floor trader
told me that if $390 is taken out to the upside, the
Comex could be in VERY SERIOUS TROUBLE.

It gets worse.

This was posted by the well-informed Sequin at the
popular Kitco gold site:

"Option trader got fired.... You guys can't even start
to imagine how much blood there is.... Bullion banks
are in panic mode -- derivative positions too big to
cover, no liquidity, fear about medium-size mine
defaults because of overhedging and margin calls. Very
bad words in board rooms these days. Banks hesitate to
be the one who pulls the trigger on mines since they
could start a cascading default chain reaction. UBS is
dead. Goldman is dead. Morgan is -----ing razor blades
but not dead yet. Morgan stanley disappeared from radar
screen. They NEEEEED gold to go down. There is about
one-year production of buy order between 280/295. If
these guys start to panic, it might get interesting.
But too much blood is not always the best you can hope
for; beware of central banks stepping in. If there are
small-to-medium mines defaulting, we could see
contagion on the XAU. So I would prefer an orderly
rise. I know this is too much to ask for and I am a
little bit excited."

This man knows his stuff and is highly regarded by my

The banks are being seriously queried about their gold
market exposure. Today Chase Manhattan Bank (which,
field commanders, tell me has huge problems),
downplayed the gold problem to banking analysts.

First Call is an institutional service that provides
portfolio managers the opinion of buy-side analysts.
Chase, which is in the spotlight big-time, has told the
analysts that it has no problems because, in essence,
it had its producer clients hedge; that is, the
downside was protected and now with this gold move up,
the credit ratings of the gold producers will go up.

More on this Chase hype soon. My violin is strumming

Choke, choke, choke.

Chase is Newmont Mining's Hannibal. Field commanders
tell me Chase talked Newmont into a "structured deal"
forward sale at $270 just when the manipulation crowd
was looking for more gold supply to continue its
manipulation games.

Newmont Mining, what do you think of the Hannibal
Cannibal strongarm tactics now? What do your loyal
shareholders think? In Barron's you said "no one saw
this coming." Garbage! Your representative met with me
in Dallas and with Frank Veneroso in New Jersey. We
told you it was coming.

I don't blame Newmont; they are decent people. Hannibal
forced them to do what they did. How would you like to
have been a member of Newmont's Board of Directors?
Chase Manhattan tells you that the price of gold is
going down. It is getting touch-and-go for you.
Hannibal: "You know, Mr. Director, if the price of gold
does do what we say it is going to do, you might be
held personally liable by shareholders if your company
goes down for the count."

That is what the Hannibal Cannibals did to Newmont
Mining and to other gold producers. These guys were
given little choice.

GATA still loves you, Newmont. But get behind us now.
Stand up for your shareholders.

Supreme Allied Internet Headquarters is pleased to
announce Hannibal Cannibals are in full retreat. They
have accepted GATA's ultimatum of unconditional,
dishonorable surrender and are fleeing out the back end
of the "enveloping horn." We will honor our terms and
not close the back end of the horn on them. (Perhaps
that is where we differ from Shaka, the great but
brutal Zulu chieftain,who employed this strategy)

Again, I congratulate you all. Your persistent,
informed intelligence has been right on the money. Only
the U.S. Federal Reserve can bail out the bad guys now.
But GATA has the heat on the Fed. We are watching their
every move. We know the commission firm the Fed cajoled
not ease up on the Hannibals. Congress already has
opposed the IMF gold sale idea, for good reasons.

A big political year is coming up. If the Fed tries to
bail out its cronies, we will rush to the political
opposition of the present administration and wave a red
flag. GATA's recent findings have already been sent to
three congressional committees.

For nine months GATA told you that we would be
RELENTLESS and that we would not let down the thousands
of people in the gold community who said they were
counting on us. We promised them an all-out effort and
results. We are keeping that promise.

Our camp will be more gracious than the Hannibals have
been. We will show mercy on them and let them out of
the back end of our "enveloping horn." When the price
of gold hits $340, we will accept their surrender.

Just a few more surrender terms. First we want them to
admit that Frank Veneroso's analysis was right and that
Gold Field Mineral Services was wrong.

Second, we will insist the talented, loquacious bullion
dealer apologist, Andy Smith, come up with the title
for the GATA movie. Smith told clients over and over
that GATA's complaints were more fanciful than a Julia
Roberts movie.

Speaking of movies, Andy, my dad befriended Tom Cruise
of Glen Ridge, New Jersey, when he was a busboy at the
Glen Ridge Country Club. He took Tom to his first
professional football game at Giants Stadium and they
shared a good camaraderie. Tom was commuting into New
York at the time, studying acting, and thought he had a
shot at being a decent actor.

I toast all you soldiers of the Internet and thank all
of you who fight so the truth be known.

All the best.