You are here

Notes on the FT conference, and ESF disclosures

Section: Daily Dispatches

By Bill Murphy, Chairman
Gold Anti-Trust Action Committee
July 10, 2000

Alain Despert's new Absente image, quot;The Green Fairy,quot;
which will appear in international magazines this fall,
is also going to be released as a limited edition
print. Only two artists have been selected for this
Michelle Roux campaign: Alain Despert and world-
renowned prince of pop artist Romero Britto. Britto's
prints sell for $1,300 to $3,000. The opening retail
price for quot;The Green Fairyquot; will be set at $1,000. As
with any limited edition, the price will increase as
the inventory depletes.

Worldwide demand for Alain Despert's work is increasing
rapidly, as is his work's market value. His work is
primarily original paintings on canvas which sell from
$5,000 to $15,000. He has released only three prints of
his work for special projects, the GATA print being

The GATA limited edition print was initially offered
significantly below market value in support of the Gold
Anti-Trust Action Committee for the first year and
initial phase of the print's release. As of July 17,
2000, the print will be offered for $750. As time goes
on and supply of the prints diminishes further (five
were ordered last week alone), the price will be
boosted to its fair market value of $1,000.

If you have been thinking of supporting our efforts by
buying a GATA print, now would be a great time to do so
before the price increases. Details for ordering the
GATA print are available at the web site.

The GATA has now raised more than $234,000. We are
applying those funds the best way we know how to
achieve maximum awareness of our findings about the
gold market.

The feedback from our recent trip to the Financial
Times' World Gold Conference has been terrific. So has
been the response from so many about our challenge to
debate Gold Field Mineral Services Ltd. about the size
of the gold loans, the meaning of the explosion in gold
derivatives on the books of certain bullion banks, and
the manipulation of the price of gold. Dr. Paul Walker
of GFMS publicly declined our challenge, saying GFMS
has 31 years of experience collecting data, and if we
had similar experience, he would debate us.

Well, our camp has had more than twice that amount in
observing futures markets, gathering data, advising
gold companies, advising governments, making
presentations, etc.

Our efforts in that regard are ongoing, and we expect
to make that challenge once again. Perhaps the World
Gold Council would care to join the debate. What is
wrong about finding out who is right and having a bit
of transparency on gold? Is gold the only market in the
world that is supposed to be hushed up in this advanced
age? That topic alone begs the question as to what gold
is all about in modern financial transactions. Far from
being an archaic relic, it is being used in the most
fashionable financial instruments.

There is much to be done in addition to the debate
challenge. The National Mineworkers Union in South
Africa is to be contacted, as is the Black Caucus in
the U.S. Congress, as are our contacts on the
congressional Banking and Intelligence Committees. We
also have to follow up with certain banks and with
certain gold producers.

GATA's officers and members have chosen to donate their
work time without compensation. We need more gold
companies to help us with our expenses, which can be
considerable at times. Trips to France, New York, and
Washington, as well as effective advertising, are not

We have been stunned by the response of so many people
from all over the world who have contributed to GATA,
but we are just as dismayed at the lack of support from
so many gold companies. Only six major gold producers
and 24 smaller gold companies have given any kind of

That is after GATA and its supporters have sent
thousands of emails, faxes, letters, and reports, and
spent countless hours on the phone tying to reach these
gold companies. The shock is that many gold companies
are clueless about what is going on and don't even seem
to care. Their response to GATA supporters is something
like, quot;We have many doing this for many years, and the
gold price will go up when it is ready.quot;

Brilliant, eh?

Never has an industry been so inept in dealing with
such a serious problem. Consequently, the share prices
of the smaller gold companies continue to dwindle as
the XAU hits 52-week lows, even though the price of
gold is $30 off its lows.

The message investors are sending to the gold companies
is clear: If the companies don't intend to change the
horrific status quo, why should investors plunk their
money down and invest in the gold shares? The answer is
that they are leaving in droves.

It is not for these companies that GATA fights the good
fight. We had hoped every gold company would buy a GATA
print or have one of its shareholders do so, at a
minimum. That has not happened yet. Not one has even
bothered to call and ask a question about the Gold
Derivative Banking Crisis report that was presented to
House Speaker Denny Hastert. At the FT Gold Conference
only Sean Boyd, president and CEO of Agnico-Eagle, and
John L.C. Jones, executive chairman of Troy Resources
N.L. of West Perth, Australia, bothered to introduce
themselves and thank us for our efforts.

You can be sure that GATA will not stop until we win
the day and the perpetrators of this gold fraud are

It is ironic that the Bank of England gold sale
announcement is what has convinced so many that there
are forces conspiring to hold down the price of gold.
How much different is it today than 200 years ago? It
turns out that we are going against the same crowd as
the American colonists did -- a part of the government
and certain banking interests.

Dr. Larry Parks of FAME commented recently in an
interview with Jay Taylor:

quot;Fiat money monetary systems always collapse because
greed and the lust for power know no limits. Those who
possess the ability to create and benefit from money
created out of nothing always overreach. The result is
generally a move toward more statist government to
'remedy' the collapse and 'control/regulate' the
economy to help prevent future collapses. Those who
create the fiat money are usually in left charge and
with greatly expanded power. This is a topic that the
establishment press declines to address. The gains to
those who create the fiat money (commercial banks), to
those who move it around (Wall Street firms), and to
large credit-worthy borrowers have been off the scale.
In essence those gains represent wealth transfer from
those who earn money by producing goods and services to
those who create fiat money and move it around or have
easy access to it.

quot;The main thing that stands in their way, like sand in
a gearbox, is gold, the choice of the people for money.
As a result, those who profit from fiat money have for
a very long time been denigrating gold; recall Lord
Keynes, who helped create the central bank of India:
'The gold standard is a barbarous relic.'

Larry is correct. Who do you think bailed out Long-Term
Capital Management, the exposed banks during the
Mexican financial crisis, etc.? It may not be
transparent at first, but a moral financial hazard is
in play and certain financial institutions are playing
it with gold at the top of the list. One day it is
going to get too big to handle and there will be
another crisis. This one will be very different from
the others. The quot;fix-itquot; solution will have to be known
publicly and the financial scandal will be clear as

Unless they let the financial system bleed to death,
the central banks are going to have to bail out the
bullion banks. Gold will have to be supplied to the
market at a price that will be hundreds of dollars per
ounce below its equilibrium or fair price. It will be
the people's gold that will have be used to bail out
the bullion banks, another bailout for the rich and
privileged who have taken egregious risks at the
public's expense.

What would the American colonists of old, who fought
and gave their lives for YOUR economic freedom, have to
say about that one today? Those Americans who are
paying any attention at all and do not protest these
gold market shenanigans most likely would have been on
the British side during America's country's fight for
freedom. Few would admit to that, and I am sure no one
who saw the new film quot;The Patriotquot; stood up and cheered
the British when they advanced against the colonists.
But which side do you think most Americans are
inadvertently cheering on today in the gold debacle?

What if our ancestor colonists were like many gold
industry executives and said, quot;Oh, well, we will be
free from tyranny when it comes?quot; Make no mistake about
it, there is a financial tyranny of sorts plaguing
financial land. Many people and countries are suffering
all over the world so that certain banking institutions
and their favored clients can play with practically
interest-free money -- while the gold price is not
allowed to rise, so that the King Dollar charade can

GATA thanks you for the many kind words, but we are
merely doing what has to be done. Of course in a way I
once was a quot;patriotquot; myself: the Boston Patriots of the
old American Football League, in 1968. Now that WAS
intimidating at times -- staring up at the likes of the
Kansas City Chiefs' 6-foot-10, 280-pound Buck Buchanan,
6-foot-9, 300-pound Ernie Ladd, and superstar giant
linebackers Willie Lanier and Bobbie Bell.

Maybe I got hit in the head too hard too many times,
which is why I do what I do today. No matter; it is
time to put the arrogant in their place. Somebody has
to do it. Might as well be us.

GATA promised 20,000 out of work Australian miners many
months ago that we would do our best for them because,
as they said, quot;Somebody has to do something.quot; But we
are not doing what we can just for them or for us gold
share investor crowd. The following letter to GATA says
it all and is reason enough alone to get the job done.

* * *

Enclosed is my small contribution of $10.

I am a senior citizen and very much interested in your
cause because I can't retire until gold makes a
substantial move. I, and you, would be surprised how
many other seniors have been holding gold now for it
seems many years.

This is just a quot;thank youquot; for taking up our cause.
Sorry for the small amount but if you could put your
address in a gold newsletter, you may get more small
donations that would add up.

Thank you,

Beverly Allen

* * *

Brother gold companies, can you spare a dime?