You''re watching the sea change

Section:

12:55a EDT Saturday, October 16, 1999

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy tonight sent this dispatch to
his subscribers at www.lemetropolecafe.com and asked
me to send it to you because it is of general interest.

GATA is calling all friends of gold to their battle stations
for a special announcement at 7:50 a.m. Central Daylight
Time this Sunday -- tomorrow. This is going to be war, and
we're going to win it.

Please post this as seems useful.

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

* * *

GOLD PRODUCERS ARE DIVIDED
BUT OUR 2 HEROES ARE EFFECTIVE

By Bill "Midas" Murphy
www.lemetropolecafe.com

Friday, October 15, 1999

This past week I told you that some of the major gold
producers had agreed to an unwritten, but formal
agreement, to cut their gold production, a la OPEC. My
information came to me from the best of sources in the
gold producer community.

I just received this email from GATA Treasurer, Chris
Powell. It quotes an a usually informed source who
posts on the Interet:

"It's illegal to form cartels in America. The
government prohibits any such organization. But outside
America, it's perfectly legal. Just take a look at
OPEC.

"Since the British gold sale, South Africa got real
angry and, led by Anglogold, it has been pushing full-
steam into creating an international gold cartel made
up of non-USA gold producers.

"The rumor buzzing out of London tonight is that an
agreement has been reached and will be announced at a
big press conference soon.

"If non-USA mining companies announce even a 25 percent
reduction in global gold output, it's gonna ignite the
gold price beyond description."

This confirms what I have been told.

I also have reported that there are rifts in the World
Gold Council. This explains the rift. The overly hedged
shorts do not care for a cut in production; their
shares will not perform well if the gold price
explodes. This also explains why Gold Field Ltd.
announced today that it has now covered most of its
hedges.

Chris Thompson of Gold Fields and Bobby Godsell of
Anglogold have been the powerhouses on behalf of gold.
They are standing up to the Hannibal Cannibals and are
quietly changing the gold world in behalf of their
companies and the gold industry. Gold shareholders,
they are your angels. They should be applauded.

Carpe diem is in. Hannibal Lecter is out.

By now you all know that the U.S. Producer Price Index
figures released today were far more bullish for gold
than anyone imagined. The dollar was beat up and the
equity markets were trounced around the world, yet gold
was allowed to rally only $2 by certain malign forces.
If that did not hit you over the head today about what
we are dealing with, get a checkup with a top brain
surgeon.

Our camp has been victimized far too long. I would like
to echo our sentiments:

WE ARE MAD AS HELL AND WE ARE NOT GOING TO TAKE IT
ANYMORE.

The Gold Anti-Trust Action Committee certainly will not
stand for the government bailout of the cartel that has
ruined so many companies, shareholders, and miners to
suit its own greed.

At 7:50 a.m. Central Daylight Time on Sunday morning
GATA and the "right flank" will make an important
announcement to every gold company shareholder in the
world.