Report from Paris: GFMS hides from GATA''s challenge


10p EDT Sunday, June 25, 2000

Dear Friend of GATA and Gold:

GATA's delegation to the Financial Times Gold
Conference in Paris will issue the challenge below at
the opening of the conference in a few hours. Please
post this as seems useful.

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

* * *


TO: Attendees of the 23rd Financial World Gold

FROM: Bill Murphy, Chairman, Gold Anti-Trust Action
Committee Inc.

SUBJECT: GATA Challenges Gold Fields Mineral Services

June 26, 2000

On May 10, 2000, a delegation of the Gold Anti-Trust
Action Committee met with Dennis Hastert, speaker of
the U.S. House of Representatives, about the
manipulation of the gold market. We presented the
speaker with our 119-page "Gold Derivative Banking
Crisis" report, which may be viewed at our Internet

That discussion went so well that the speaker arranged
a meeting for us with U.S. Rep. Spencer Bachus,
chairman of the House Subcommittee on Domestic and
International Monetary Policy, which has oversight of
gold and silver issues. Six members of Bachus' staff
also attended.

Then the GATA delegation met with Dr. John Silvia,
chief economist of the Senate Banking Committee. The
next day we distributed the "Gold Derivative Banking
Crisis" report to every House and Senate banking
committee member.

After GATA's meetings in Washington, the Select
Committee on Intelligence and the Senate Subcommittee
on Technology, Terrorism, and Government Information
requested and received our report.

The Gold Anti-Trust Action Committee believes:

1. That certain bullion dealers, with some possible
official sector support, have been acting together to
hold the gold price below $300 per ounce.

2. The gold loans are much larger than commonly
acknowledged. Our best estimate is that they are around
10,000 to 11,000 tonnes. Since gold mine supply in 1999
was only 2,579 tonnes, there is serious potential for
physical delivery failures, which could even be
systemic in nature.

3. The incredible buildup of the notional amount of
off-balance-sheet gold derivatives at certain bullion
banks should be scrutinized by the gold industry and
banking authorities. According to the U.S. Office of
the Controller of the Currency and the Bank for
International Settlements, they have risen dramatically
this past year.

Reginal H. Howe of has written
extensively on this subject. Howe was part of the GATA
delegation to Washington and is attending this
conference in the event you wish to speak with him.

In addition, Sanders Research Associates, a prestigious
London consulting firm, has just published an interview
about GATA's findings. This article will be read by the
European Central Bank, the Saudi Monetary Authority,
the Dallas Federal Reserve Bank, Congress' Joint
Economic Committee, pension fund managers, and others.
It also may be viewed at our Internet site:

The Gold Anti-Trust Action Committee realizes that many
attending the Financial Times World Gold Conference do
not accept our conclusions about what is really going
on in the gold market. As we told the speaker of the
House, we are only looking for the truth.

In that spirit, the GATA delegation challenges Gold
Fields Mineral Services Ltd. to a luncheon debate on
our findings and the "Gold Derivative Banking Crisis"
report. This debate can be held in New York, London, or
at the Blanchard Investment Conference in New Orleans
(at the preference of GFMS) with members of the press
and gold industry as guests. GATA will pay for the
luncheon, travel expenses, accommodations, etc.

There is a great call in many financial circles for
greater transparency in the gold market. As many people
have acknowledged, gold may be the least transparent
market of all. Such a debate can only help those in the
gold industry who wish to determine the facts.