Thanks Norman..... Below: FWIW
Subject:
[GATA] GATA cited in Gartman Letter, Gold Newsletter
Date:
Mon, 14 Jun 1999 21:53:54 EDT
From:
GATAComm@aol.com
To:
gata@egroups.com
9:45p Monday, June 14, 1999
Dear Friend of GATA and Gold:
There's good news and bad news for GATA, but even the
bad news is good.
The bad news, such as it is, is that GATA was
disparaged loudly in a recent issue of the Gartman
Letter, a major commodities market publication. Here's
what the Garman Letter had to say:
"The Gold Anti-Trust Action Committee (GATA), a
gathering of disgruntled gold bulls, is in the news
once more, charging yet again that the gold market's
lending operations dominated by the central banks and
hedge funds have reached a point of considerable
'systemic risk.'
"GATA notes that the total amount of gold lent is
between 8,000-10,000 tonnes, thus creating a 'squeeze'
that must eventually send gold higher, creating
problems for the central banks and for their attendant
governments. This is rather like the national corn or
wheat growers becoming concerned that the amount of
corn of wheat futures trading exceeds the national
production of grains and thus is manipulative.
"It is very much the norm to have more grain futures
trading and more gain futures derivatives operative
than the amount of grain produced, several times over.
This is the nature of the derivative hedging
operations.
"GATA's arguments are the arguments of gold-market
bulls unwilling to accept that their positions are
under water, driven there by legitimate market forces.
"Nonetheless, as gold prices rebound in the next
several days, look for GATA to claim credit for the
rise, and look for others to give GATA credit also. In
reality, there may be something minor in GATA's
arguments concerning the gold lending trade that has
some kernel of truth to it, and we'd not be surprised
to learn of some hedge fund somewhere running into
trouble as gold rallies and their carry trades become
burdensome. However, given the seriousness of the gold
market collapse in recent weeks, it shall take a rally
of monstrous proportions to create the environment, and
at this point we are very hard-pressed to see how or
where it might evolve."
While there is criticism of GATA in the Gartman Letter,
note that it also acknowledges that GATA well may be on
to something. And of course in the War Against Gold,
GATA doesn't ask much more than that gold's enemies
spell our name right. Our friends will know us, and
thus all publicity is good for us.
The fully good news comes from Gold Newsletter, now
edited by Brien Lundin, who succeeded the great Jim
Blanchard upon Blanchard's death two months ago. Lundin
attended the Northeast Investment in Mining Conference
in New York a couple of weeks ago and heard GATA
Chairman Bill Murphy's speech there. Gold Newsletter's
cover story for the June 1999 issue, in the mail today,
reports that evidence of manipulation of the gold
market is building and that skeptics are becoming
believers, thanks largely to the Bank of England's plan
to sell gold and the strange timing and rationale
offered for it. Gold Newsletter's story concludes this
way:
"Those of you who subscribe to the conspiracy theories
now gaining wider support, or those who just like to
stir things up a bit, should support the Gold Anti-
Trust Action Committee (GATA), launched by Bill Murphy.
I've known Bill for some time, and I can tell you that
he's one of the more ardent and knowledgeable gold
supporters you'll ever come across.
"As evidence of this, he launched GATA to use anti-
trust laws to sue the banks and broker-dealers that he
and many others feel have been manipulating the gold
price. GATA has so far collected over $50,000 from
interested investors and gold-mining firms, and has
retained the respected Berger & Montague law firm to
investigate the issue. I don't know whether GATA will
ever be able to prove anything in court, but their
efforts are gaining broader publicity and will at least
subject the gold shorts to greater and greater
scrutiny.
"I urge you to contact GATA for more information. Write
or email John D. Meyer, Treasurer, GATA, Box 888, Great
Barrington, Mass. 01230 (email: bfameyer@aol.com). You
should also visit GATA's website at www.gata.org."
GATA is deeply grateful to Gold Newsletter and Brien
Lundin for these comments -- and even to the Gartman
Letter as well, if not quite as warmly!
Once again I ask you to post this wherever it might be
helpful.
As always, thanks for your interest and support.
CHRIS POWELL
Secretary, Gold Anti-Trust Action Committee Inc.
(GATAComm@aol.com)
-END-
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