Swiss financial magazine Cash covers GATA lawsuit

Section:

9:40p ET Friday, February 2, 2001

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy continued today his
meetings with business leaders in South Africa,
attending a conference with the Chamber of
Commerce in Johannesburg and dining on, among
other things, crocodile and ostrich. Murphy as
to travel to Cape Town tonight and will attend
the Indaba mining industry conference next week.

He said he was being treated like royalty by
the most wonderful people and making valuable
contacts.

He also continues to get substantial publicity,
as you'll see from the story below from yesterday's
Durban Daily News, which was published with a
big photograph of Murphy, who was shown holding a
copy of Frank Veneroso's Gold Book Annual. Murphy
has met many people who saw his national television
interview this week.

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

* * *

Gold market impi:
Bullion campaign sets sights
on $600/ounce price.

A pin-striped impi of gold warriors is
taking on the might of the strongest
financial forces on earth -- using the
battle plan of a famous South African.

By Des Parker
Durban Daily News
February 1, 2001

The war savvy of legendary 19th-century Zulu king
Shaka is inspiring American crusaders determined
to end what they say is an international conspiracy
holding down the price of gold regardless of the
economic and social cost to mining countries such
as South Africa.

Yesterday, as he planned to meet the famous
warrior's direct descendant, King Goodwin Zwelithini,
in Durban, a member of the Gold Anti-Trust Action
Committee (GATA) described how Shaka's horn-
shaped fighting strategy had been adapted to help
return the metal to the $600 an ounce level he felt
it should be.

"On the left flank we are gaining support from
politicians in America and abroad, and growing
interest from the media," GATA Chairman Bill Murphy
told journalists, unionists, and business people in
Durban.

"On the right we have increasing financial and moral
support from gold producers. The frontal assault is
our court action -- started in the United States in
December -- charging the Bank for International
Settlements, five global investment banks, and top
U.S. treasury and Federal Reserve officials with
price fixing, securities fraud, and breach of
fiduciary duty."

The complex GATA theory holds that this "cartel"
has colluded to hold down bullion prices since
around 1994 by coordinating the market for gold
derivatives.

Central banks had been influenced into lending from
their gold reserves -- in effect selling it, says Murphy
-- as well as auctioning big portions of them off. The
resulting market surplus of the metal depressed prices.

Apart from shoring up the banks' derivative positions,
said Murphy, the actions aimed to keep the dollar
strong and hold down American inflation. He claimed
the actions had moved out of control and were a threat
to the world financial system.

GATA charges that "a blind eye" has been turned to
the tens of thousands of jobs lost and the economic
damage to gold producers such as South Africa.
While current gold production was well below demand,
prices had been forced down from close to $400 an
ounce in the mid-1950s to barely more than $260 today.

Murphy supported his argument with these year-end
prices:

1995: $388
1996: $369
1997: $289
1998: $289
1999: $289
2000: $273

Murphy is attending the Investing in African Mining
Indaba 2001 in Cape Town next week.

Among business, political, and union leaders he has
met or is to see, he said, were top people at
Anglogold and Harmony, National Union of Mineworkers
general secretary Willie Madisha, and executives of the
South African Chamber of Commerce.