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GATA PRESS RELEASE

quot;Gold as Theatrequot; by Tocqueville's Hathaway
Bolsters GATA's Credibility

DALLAS (Business Wire, Aug. 27, 2001)-- Gold fund manager John
Hathaway has endorsed the findings of the Gold Anti-Trust Action
Committee (GATA) that the price of gold is being suppressed by the
U.S. government.

Hathaway's endorsement came in a press release dated August 23
and titled quot;Gold as Theater,quot; posted at the Internet site of the
Tocqueville Funds:

a href=http://www.tocquevillefunds.com/press/archives.php?id=22http://www.tocqu...

Hathaway manages the Tocqueville Gold Fund.

GATA Chairman Bill Murphy welcomed Hathaway's statement. quot;It
enhances GATA's credibility immensely,quot; Murphy said. quot;John Hathaway
may be the most respected gold fund manager in the world. Now that he
has been persuaded that the U.S. government is rigging the gold
market, others may be persuaded too. And just as important, GATA may
be closer to showing the world that there isn't a surplus of gold but
a great shortage disguised only by massive central bank leasing and
purposely deceptive gold swapping operations.quot;

In quot;Gold as Theater,quot; Hathaway writes:

quot;There is growing body of credible evidence that the U.S.
government and others may have been manipulating the metal
price for some time. A few years ago such claims were
unsubstantiated and lacked credibility, but recently some weighty
evidence is beginning to accumulate. Credit for the heavy lifting
on discovery of possible price-fixing activity goes to Bill Murphy,
Reginald Howe, James Turk, and their associates. A useful
source to learn more are the two Gold Anti-Trust Action Committee
Web sites: www.lemetropolecafe.com and www.gata.org.

quot;The Exchange Stabilization Fund, controlled by the U.S. Treasury
and essentially unaccountable to Congress or the American people,
appears to be a key instrument for intervention. It appears that U.S.
gold reserves have been swapped or in some way encumbered. The
basis for this supposition can be found in the ESF financial
statements
themselves.

quot;According to James Turk in his Freemarket Gold amp; Money Report
(www.fgmr.com) dated August 13, 2001, SDR Certificates held by the
ESF declined from a peak level of 10.2 billion to 2.2 billion as of
year
end 2000. A precipitous decline from 9.2 billion as of year-end 1998
to current levels coincided with an accelerated decline in the gold
price that began in May 1999 (the announcement of British gold
auction) and the breakout of the trade-weighted dollar index from a
multi-year trading range.

quot;If the U.S. and other governments have been actively involved in
manipulating the gold market, there is far greater upside potential
for the gold price than I had previously imagined. The U.S. government
may have already expended considerable resources to hold the gold
price in check. Public, press, and congressional scrutiny of these
matters should commence in earnest.quot;

GATA Chairman Murphy notes that GATA consultant Reginald H. Howe
has located an academic essay co-authored by Lawrence Summers,
former U.S. treasury secretary and incoming president of Harvard
University.

The article, quot;Gibson's Paradox and the Gold Standard,quot; was published
in June 1988 in the Journal of Political Economy. In this essay
Summers observed that in a quot;truly free market gold prices will move
inversely to real long-term rates, falling when rates rise and rising
when they fall.quot;

But, as Howe writes at www.GoldenSextant.com about the Summers
essay:

quot;This relationship ended after 1995 during Summers' tenure at the
Treasury Department. During this period, as real interest rates
(30-year T-bond less the CPI rate) have declined from the 4 percent
level to near 2 percent, but gold prices have fallen from $400/oz. to
around $270 rather than rising toward the $500 level as Gibson's
paradox and the model of it constructed by Summers indicates they
should have.quot; Howe goes on to observe, quot;The low real long-term
interest
rates of the past few years may have been engineered with far more
sophistication than those of a generation ago, including the
coordinated and heavy use of both gold and interest rate derivatives.quot;

Howe's observations are supported by the work of GATA consultant
Mike Bolser in a report entitled, quot;Preemptive Selling in COMEX Gold,quot;
which can be viewed at:

a href=http://www.goldensextant.com/commentaryBA.html#anchor65565http://www.gol...

Bolser notes a standard deviation selling event on Comex in 1996
that quot;would be expected to happen at random only once in 833 years of
Comex activity (10,000 periods).quot; Bolser goes on to say: quot;The
implications of such an event are ominous. These extreme selling
events started during the Clinton administration. Perhaps not
coincidentally, Event A occurred right around the time that the
Federal Reserve, after a lapse of 64 years, assumed the two American
seats on the board of the Bank of International Settlementsquot; -- an
event GATA maintains is central to the U.S. government's suppression
of the gold price.

Murphy says: quot;Each week now produces more evidence that the United
States has been a part of a scheme to manipulate the price of gold.
This scheme is confirmed by the January 31, 1995, minutes of the
Federal Reserve's Open Market Committee, at which gold swaps were
attributed to the Exchange Stabilization Fund.quot;