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A few years ago GATA was nuts; now we''re almost conventional wisdom

Section: Daily Dispatches

11:08p ET Sunday, November 10, 2002

Dear Friend of GATA and Gold:

James Sinclair, the renowned gold market
expert and chairman of Tan Range Exploration,
had generous praise for GATA at the New
Orleans Investment Conference, where GATA
Chairman Bill Murphy was a featured speaker
and discussion panel member.

Just before leaving the conference today,
Sinclair provided us with the commentary
below for distribution to you. He forecasts
big and imminent changes in the gold market
and offers a compelling explanation for

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

* * *

Is Strategy of Asian and Islamic
Gold Buying Taking Final Form?

By James Sinclair

The key factor in China is not the initiation
of a gold exchange. That alone would not be
anything much unless two other events also had
occurred. The real news is the that the Chinese
regime is finalizing what in their terms is a
turn to the right.

Compare this new environment to Tianamen
Square so that you will comprehend it in
terms of motion and trend. The Chinese have
adjusted their legal code, removing state
assets from a privileged position above
private assets in legal protection. That
translates into the right of private

The second event, as silly as it sounds, was
the criminal charge against a famous Chinese
actress for failure to pay taxes. Until now
no one of Chinese citizenship or domicile has
paid taxes. Taxes are part of the Chinese
legal code but traditionally Chinese citizens
have not paid much attention to them.

Like any celebrity criminal case, this is
simply a message sent to the populace for the
most significant impact.

These two events plus the legalization of
investment in gold and storage facilities
in China make for a major event. It is major
because China has a history of currency
collapse and the cultural memory of the
Chinese people is infinite.

We now have in gold:

1. The five elements of a gold bull market.

2. The wild card of the Islamic gold dinar.

3. The longshot of the resuscitation of the
gold cover clause should the U.S. dollar drop
below 90 on the USDX.

In addition to these factors, we now have:

4. A gold-backed if not convertible Chinese
currency or measure for inter-Asian trade as
part of a long-term plan of economic

The gold dinar might simply be a test with
quiet Chinese support.

Therefore China's opening of trading in gold
is much more than another exchange. It is
another stitch in the cloth of what this gold
market is really all about. It is a move
toward the remonetization of gold by Asian
and Islamic interests.

Now do we know the plan of Dr. No and Hung

I never believed that they were buying gold
just for economic reasons. Since 1995 they
have been buying all the gold sold by the
gold producers, the gold cartel, the central
banks, and discouraged gold investors. Is
their plan for huge profit now showing
itself? Has their almost inexhaustible source
of funds also been Chinese?

Time will tell, but my sources will know. I
may have to take a trip to Asia soon. Stand
by, because when I am sure of what is
happening, you will also know, assuming that
the price of telling you is not too steep.


James Sinclair is chairman of Tan Range
Exploration, whose Internet site is



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