Gold market unstable, could explode any time


10:32p EST Tuesday, February 8, 2000

Dear Friend of GATA and Gold:

Here's an interesting comment posted tonight at by its noble and generous
proprietor, Michael Kosares.

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

* * *

By Michael Kosares
February 8, 2000

The one thing that is getting lost in all the discussion
about Barrick is the fundamental change in the carry
trade/forward business.

It used to be that all the majors were forced to play
along with Barrick and the bullion banks as a matter of
survival. Now the split between the quasi-hedge funds
like Barrick and the traditional producers has widened
to a public chasm.

Barrick stands on one side of the chasm and Gold
Fields, Placer Dome, Euro-Nevada, and to a certain
extent Anglogold stand on the other. Each will try to
pull the other into the chasm in a tug of war. At least
now we have combatants -- that alone is a major
breakthrough we all need to incorporate into our

As physical gold owners, we are no longer alone in this
battle. We have recruited some stalwart public allies
in the real producers and the European Central banks.

Over the course of the past week, that fact of life has
become evident to the chagrin of the bullion banks and
the Bank of England, and to the delight of gold
advocates all over the world.