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Bank of Italy accounts show evidence of gold swap deception

Section: Daily Dispatches

11p ET Monday, December 17, 2001

Dear Friend of GATA and Gold:

GATA consultant Mike Bolser has discovered that something
big is happening with J.P. Morgan's gold derivatives as
reported to the U.S. Office of the Controller of the
Currency. Mike's analysis is described in a new posting
at Reg Howe's Internet site, here:

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In short, it appears that Morgan's gold position is being
transferred to an entity that doesn't have to make public
reports. That is, it is being moved off the public books
and hidden somewhere.

Also of interest today, the daily commentary of gold market
analyst Michael Kosares, proprietor of, took
note of AngloGold CEO Bobby Godsell's latest comments to
GATA and found meaning in them that we may have overlooked.
Kosares wrote:

From AngloGold Chairman Bobby Godsell in a letter
to a GATA supporter (and published by GATA): quot;I
continue to think that the level of disclosure on gold
lending by both central banks and bullion banks leaves
much to be desired. Gold producers are required to
disclose in great detail (even more so since FAS 133),
and we do so. We as a company have called publicly
and lobbied privately for greater, more regular, and
more meaningful disclosure of lending activity by both
central banks and bullion banks.quot;

I ask you now to go back and read that again because
it is a carefully thought-out and -worded statement. I am
beginning to believe that a big part of the problem is that
the bullion banks and central banks have been playing a
shell game with gold -- lending it and swapping it out on
a regular basis between reporting periods. The reference
to quot;more regular and more meaningful disclosure of lending
activityquot; has special meaning for those of us trying to
understand what's going on in the gold market.

While Godsell didn't quite endorse GATA's interpretation of
bullion and central bank involvement in the gold market, he
may have gotten pretty close in a polite way.

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


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