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

To have caught what Congressman Paul said the next day on CNBC was more than gratifying after trying this and trying that over the 12 ½ years CP and I have been on the GATA case. The congressman is all over what GATA has to say. Contrast that to a visit we had on May 10, 2000 with a former head of the same committee with a slightly different name…

June 5, 2000 - Spot Gold $285.40 up $4 - Spot Silver $5.02 up 3 cents

Midas Special

The "powerful politician" to whom I have kept referring when the Gold Anti-Trust Committee Delegation visited Congressional leaders in the Nation's Capitol on May 10th was The Speaker Of The House, Denny Hastert.

The GATA delegation intended to keep that under wraps for as long as possible. It is not surprising that Jay Taylor found who it was as he recently interviewed Congressman Ron Paul. We visited Congressman Paul the day after our meetings with the other Congressman. In addition, the Speaker's name was on the original "Gold Derivative Banking Crisis" document that was personally delivered to the offices of all the House and Senate banking committee members.

The fact that his "document" is now being distributed all over the world also makes it less necessary for the Congressmen to do their homework. The market may do it for them.

Of course, I would think that many of the Banking and Intelligence Committee members would like to know how the gold market could have been manipulated for so long and why. Certainly the Black Caucus is going to pose a few questions to certain bullion dealers, etc.

As far as I am concerned, what has taken place is criminal and should be viewed by the authorities as such. More of that below.

Jay Taylor's (proprietor of Jay Taylor's Gold and Technology Stocks) full GATA story may be viewed at the www.gold-eagle.com web site. I would like to bring one part of his story to your attention. It has had me enraged for a week:

"WHY IS THIS TOPIC NOT IN THE NEWS?

Bill Murphy at GATA has done everything within his power to bring his gold conspiracy theory to the attention of the public. But for the most part, the establishment media has shut him out. An interesting story involving the Dallas Morning News reporter helps explain why GATA has had such a tough time getting the establishment to listen to its story. When a reporter from the Dallas Morning news contacted a staff member for Congressman Bachus to confirm the meeting GATA had with various Congressional members, the significance of this meeting was down played as being nothing more than a courtesy call between Congressman Bachus and GATA. Yet, Congressman Bachus not only left the floor of the House to meet with GATA for a whole hour, but he also had six staff members present at that time. Some courtesy call!" End.

The staffer Jay Taylor is talking about is the same one whom I suggested has a direct line to the Treasury and supposed CIA snoop, Ted Truman. I have also reported to you that I have evidence that information I fed him ended up in the hands of certain bullion dealers. It is an OUTRAGE. Then, this same guy tells Bill Deener of the Dallas Morning News that Spencer Bachus, Chairman of the House Subcommittee on Domestic and Monetary Policy (with gold and silver oversight) only saw the GATA delegation as a "courtesy."

Courtesy, my butt. The VERY INTRIGUED Speaker of the House set up our quickly arranged meeting with Spencer Bachus, who told The Speaker he "had heard of the issue." The only reason Dick Armey, House Majority Leader, did not attend our two o'clock meeting was that he could not break away from another commitment.

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What we didn’t know then was that Bachus was just picking our brain, trying to learn what we knew about the real gold market. He did absolutely nothing. Congressman Paul is another man with a different agenda.

To be sure, Congressman Paul is under no illusions about the Fed. He is fully aware they will probably stonewall his efforts. However, because of his position he has subpoena power and that can make all the difference in the world.

Oh yes, about his comment the US should sell all its gold … those of you who surmised that such a move would require an audit first were correct. He had a big smile on his face.

GATA’s forces are out there doing what we can to make things happen when it comes to gold and silver. We are about action, not just talk. How effective we are we will leave to others. But certainly it is more effective than the pathetic World Gold Council with their $80 million budget. CP and others call them the anti-gold council and they are right. What a nebbish, London operation.

Speaking of the WGC and London, their home base, we are very much looking forward to our fourth international GATA conference on August 4, 5, and 6 at The Savoy Hotel. And speaking of budgets, what the GATA camp does, like this trip to Washington, takes money. We are able to do what we do because of so many special supporters and friends over the years that have sent us contributions.

We are hoping our London conference will assist us in that arena. We are delighted that Sprott Asset Management is our lead sponsor for the conference. Eric Sprott has become one of most prominent and respected men in the precious metals industry. Samex Mining is sponsoring the GATA dinner on Friday night. Jeff Dahl, their CEO, was the brains behind Gold Rush 21. We are also proud to announce that Golden Predator is our reception/cocktail party sponsor.

We are now seeking other sponsors to assist us in making our conference a huge success so we can fight the good fight as we see it. They range from $2500 to $15,000 and can be individuals or firms involved in the precious metals industry. If you, or one of the gold/silver corporations you are invested in are interested in receiving a sponsorship package, please contact me and I will send one to you.

Back to the gold and silver markets. Sometimes you learn more in the long run from the bad days than the obvious good days. The Gold Cartel pounded away today and they did not get much bang for their buck. Gold finished way off its lows and so did silver which came back from a $36.53 low. No markets go straight up and stay that way. Corrections are normal and healthy. For gold and silver to close like they did is a big picture plus.

Here is a shocker. The gold open interest fell a stunning 17,262 contracts yesterday to 513, 918 as gold rallied a little more than $3 … which means certain spec longs wanted out and a number of the shorts wanted the same. This huge reduction of open interest comes ahead of first notice day for the June futures contract and is most bizarre considering the price action … and VERY bullish the way I see it as a former futures trader of size.

The silver open interest went the other way, gaining 1567 contracts to 122,862, which is not that much considering the extent of the move in the silver price yesterday.