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A transcript of a secret meeting of the International Monetary Fund -- er, Fraud

Section: Daily Dispatches

1:13a ET Thursday, August 28, 2003

Dear Friend of GATA and Gold:

Peter Brimelow's commentary this morning at CBSMarketWatch,
appended in its entirety, is especially wonderful for indicating
that newsletter editor Richard Band has joined those wondering
out loud whether the Federal Reserve has been trying to suppress
the gold price.

Enjoy the secret knowledge of the gold cult while it remains a
mere cult, and get your gold while you can. Now that even
respectable newsletter editors are sensing that something has
been wrong in the gold market, the golden cat may be getting
out of the bag, and, once out, it may prove to be more tiger
than calico.

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

* * *

Gold timers seem hard to impress

By Peter Brimelow
Thursday, Aug. 28, 2003
a href=

NEW YORK -- What if they gave a gold rally and nobody came?

OK, it's not that extreme.

But gold's gapping upward yesterday -- bullion was up almost $11
at one point, to $374.50 -- does not seem to have excited the
gold timers monitored by the Hulbert Financial Digest.

Last night, the HFD recorded their average exposure at 54.17

That's high, but far from the recorded peak of 89.6 percent.

And, even more significant, it was unchanged from the previous
night, despite gold's dramatic day.

Even comment from the investment letters was quite modest and

Peter Eliades of Stock Market Cycles applied his esoteric cycle

quot;Today's rally in Gold generated a nominal 20 week projection
in the metal calling for 375.90-386.60. There is no equivalent
upside projection in the XAU, however and today's high of
375.40 came very close to satisfying the lower window of the
gold projection.quot;

Chris Temple of National Investor Update (new to the HFD
but well ahead of the market over the past 30 months):

quot;Gold's activities are still ruled largely by short-term traders.
One reason for today's action, in fact, is that some options
contracts for August were expiring. It appears that at least
some of the impetus for today's surge was many of the
same speculators who had expiring contracts, say, at a
gold price of $365 or $370 goosed a thin market higher so
as to exit the older positions at a better level. This is reason
to give us a little worry that today's breakout could turn out to
be a temporary wonder. I'd feel better about the gold
market-and the current pricey level of gold shares-if there
was more evidence that stronger, longer-term hands were a
bigger factor...quot;

Temple concludes: quot;If gold is sooner rather than later able
to move above late May's high of $378 per ounce with any
conviction, another $20 could quickly be tacked on. At the
first sign of a loss of momentum, however-and especially
if we start to see an unwinding of the record net long
positions-we'll want to cut back...

quot;For now, keep to your 15 percent portfolio weighting in
gold shares.quot;

On Tuesday morning, Profitable Investing's Richard Band
had been equally demanding, and wary of manipulation:

quot;A showdown is approaching for gold and gold shares.

quot;Looking at my charts, it's apparent the Midas metal faces
stiff resistance at $370 and ounce -- and an even more
formidable barrier at $380....

quot;The bears (possibly including the Federal Reserve) fervently
hope they can stop the metal before it breaches either
obstacle. Bullion dealers and other large commercial
interests have placed huge bets on the short (sell) side of
the gold futures market. Meanwhile, large speculators
(managed funds, for the most part) are buying futures at
a record pace. One side of this trade is going to prove
spectacularly right, and one side will lose its shirt.quot;

Band said any gold move had to come quot;within the next
two weeksquot; and advised baling out if bellwether Newmont
Mining didn't top $40 by Sept. 9.

Newmont closed Wednesday at $39.16.

All this is right up Richard Russell's street. Dow Theory
Letter's septuagenarian superbear exulted last night:

quot;The public is not even aware the gold is rising in terms
of dollars....And that's how I know that we're still in the
first phase of the gold bull market....

quot;Today was a big day for gold shares, and happily was
not commented on by CNBC. We'll see if the Wall Street
Journal even mentions gold tomorrow.

quot;And the 'stealth' bull market in gold continues.quot;


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