Midas commentary for June 3, 2000

Section:

11:55p EDT Friday, June 2, 2000

Dear Friend of GATA and Gold:

The word is getting out about the manipulation of the
price of gold and part of its purpose: to protect the
financial institutions that sold gold borrowed from
central banks, and to protect the central banks that
lent so much. So much gold has been sold short that
it cannot be recovered without exploding the price,
threatening the solvency of the participants in the
gold carry trade, devastating national gold reserves,
and causing an economic and political crisis.

It may be no coincidence that gold rose substantially
today, a day after GATA's "Gold Derivatives Banking
Crisis" report, which discloses the precariousness of
the short position and which was delivered to Congress
last month, was posted on the Internet, publicized,
and copied and circulated widely among gold's friends
and enemies.

Gold's friends and particularly the gold industry must
recognize that even though they are up against the most
powerful financial and politicial institutions in the
world, they are NOT powerless. There is a large
constituency for gold around the world, and, armed with
the truth, it can win -- IF it is mobilized.

The problem for the shorts is that they cannot operate
in the open: The light of day will destroy their scheme.

In several respects lately GATA has seen what clamor
from gold shareholders can accomplish with the mining
industry and the financial markets. The industry simply
has to be solicited, nudged, prodded, cajoled, hectored,
and, in a few circumstances, even denounced and
condemned to get it to stand up for itself and the gold
cause.

But it IS happening; attitudes in the industry ARE
changing -- because gold's friends ARE mobilizing.

Grousing and complaining to ourselves and consoling
ourselves with our ideologies accomplishes nothing.

Only ACTION accomplishes something -- political action,
publicity, and clamor in every forum we can reach.

We at GATA know that gold's friends don't always agree
with what we do. But for the time being it seems that
we alone DO things for the gold cause -- the cause of
free markets and honest money -- and confront the
enemies of that cause.

GATA can take criticism. But we will always reply:
What are YOU doing for the cause? What are YOU doing
to help gold fight back?

CHRIS POWELL, Secretary/Treasurer