There is one particular point I would like to hammer home at this conference and that is the price of gold should be many hundreds of dollars per ounce higher than it is now, and would be if not for the shenanigans of The Gold Cartel.

For simplistic reference why:

*The historic norm of the gold/oil price ratio is 15 to 1, which puts gold above $900 per ounce.

*In the past when the CRB was over 300, which it is well above today, the price of gold was usually above $600.

* From economist Paul Van Eeden: "According to work I have done, I estimate that the gold price should have been about $51.22 an ounce in 1959 and, if you assume that that is more or less correct, you can calculate what the gold price should be today. Compounding $51.22 at 6.07% for 46 years results in a current value for gold of $770 an ounce."

*Then there is the stunning comment made a year ago June at the LBMA conference in Moscow by Oleg V. Mozhayskov, Deputy Chairman of the Central Bank of Russia:

Many have heard of the group of economists who came together in the society known as the Gold Anti-Trust Action Committee and started a number of lawsuits against the U.S. government, accusing it of organising an anti-gold conspiracy. (This will be the first and last time in my life I will ever be referred to as an economist). They believe that with the assistance of a number of major financial institutions (they mention in particular the Bank for International Settlements, J.P. Morgan Chase, Citigroup, Deutsche Bank, and others), some senior officials have been manipulating the market since 1994. As a result, the price dropped below US$300 an ounce at a time when it should, if it had kept pace with inflation, reached US$740-760."

There are a number of clueless pundits out there who will lamely come up with poppycock reasons why the price of gold is not where it should be. They are a stretch to put it kindly.

It is right here where GATA hits its home run, garnering total silence from those in the mainstream gold world who still refuse to acknowledge the manipulation of the gold price by The Gold Cartel.

The reason the price of gold is hundreds of dollars per ounce below where it should be is because The Gold Cartel has clandestinely lent out more than 16,000 tonnes of gold from the coffers of the central banks to keep the price from rising. This means the central banks have less than half the gold they say they have in their vaults. The total gold loans/swaps (including central bank gold sales in recent years) could now even be as high as 20,000 tonnes.

How can GATA make this claim and how do we support our revelations?

For me it all goes back to a year I spent working with Frank Veneroso when he compiled the gold loan numbers. I saw how he did it, who he talked to, etc. Back in 1998 Frank thought the gold loans could be as high as 10,000 tonnes. The annual supply/demand deficit is 1500+ tonnes per year. Without going into all the detail, it is easy to surmise how GATA could come up with a total gold loan number exceeding 16,000 tonnes.

Using two completely different methodologies a few years ago, Reg Howe and James Turk came up with guesstimates that supported Frank’s findings. Reg used BIS derivatives numbers and James used Bank of England stats.

The BIS derivatives numbers are a smoking gun. As long as GATA has been in existence, the World Gold Council and Gold Fields Mineral Services have linked the huge gold derivatives on the books of the BIS to what the gold producers were up to. Yet, when the hedgers reduced their positions by around 2500 tonnes, and the gold derivatives stayed the same, or went up, they went totally silent, refusing to respond to GATA’s charges that these huge derivatives numbers were linked to a clandestine Gold Cartel lending operation.

How could this have happened without creating a fuss? Simple, the IMF instructed the central banks to lie about the true disposition of their gold reserves, which I brought to your attention yesterday. The IMF has central banks accounting for their gold loans as gold reserves in their vaults. Ironically, these central banks now have a major problem. Because of the size of the annual supply/demand deficit, they cannot get this gold back without driving the price to the moon.

Why the extraordinary resistance to GATA’s findings? Simple again. Not that long ago most of the geography experts thought the world was flat. When it was discovered the world was round, all their prior work was discredited. In similar fashion the mainstream gold world – the bullion dealers, WGC, and GFMS – won’t deal with what GATA has to say because it invalidates their work and exposes their schemes. Since they can’t discredit our discoveries, they refuse to acknowledge GATA at all.

However, the beauty of all is this is the days of the flat earthers are numbered. With the supply/demand deficit so high, mine supply on the wane, and available central bank gold supply dwindling, it is only a matter of time before the price of gold HAS to explode. At the same time, life is going by. The sooner GATA’s findings are accepted by the biggest money in the world, the SOONER the price of gold goes bananas.

What would a $300 per ounce higher gold price do for the gold companies here? For the performance of you gold fund managers? Would life be a lot better for you than it is now? Of course. This is why this conference is so vital. Enough is enough. It is time the word get out there. It is time the investment world be made aware of GATA’s findings.

The confounding part about the manipulation of the gold price is that it is so obvious for all to recognize:

*In the summer of 1998 Fed Chairman Greenspan testified twice before Congress saying, "central banks shall lease gold in increasing quantity should the price rise." GATA’s voluminous evidence makes it patently clear this is just what occurred in the ensuing years.

*Former Fed chairman Paul Volker stated the following recently in his memoirs regarding Fed activity during his regime:

"Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."

Greenspan was determined not to make the same mistake from his Orwellian point of view.

Speaking of Greenspan, one of my favorite GATA gotcha’s over the years has to do with an interplay between Senator Jim Bunning, a Hall of Fame baseball pitcher in his day, Greenspan, and the Fed’s senior counsel Virgil Mattingly. Bunning, in response to one of the GATA ARMY in his home State of Kentucky, asked Greenspan to clarify the meaning of the following in a 1995 Federal Open Market Committee meeting:

"It's pretty clear that these ESF operations are authorized. I don't think there is a legal problem in terms of the authority. The statute [31 U.S.C. s. 5302] is very broadly worded in terms of words like ‘credit' -- it has covered things like the gold swaps -- and it confers broad authority."

Mattingly’s response to Greenspan, which was passed on to Bunning:

"Given the passage of time, some six years, I have no clear recollection of exactly what I said that day but I can confirm that I have no knowledge of any "gold swaps" by either the Federal Reserve or the ESF. I believe that my remarks, which were intended as a general description of the authority possessed by the Secretary of the Treasury to utilize the ESF, were transcribed inaccurately or otherwise became garbled."

Talk about hogwash. There is not a more scrutinized document anywhere in the world than these Fed minutes. Garbled? Phooey!

Even the day to day Gold Cartel market maneuvers are blatantly obvious:

*Many of you know of the $6 Rule. Once gold rises $6, The Gold Cartel goes into its price-capping maneuvers for the day. The upper band of this limit is $7.30. It happens every time gold attempts to make a significant move to the upside – yet there is no downside limit. The cabal has implemented this rule for years to eliminate potential option volatility problems (as occurred after the Washington Agreement in September of 1999) and to keep gold excitement to a minimum.

*Then there are the constant price take downs on the Comex after the physical market pricing is over at the London Fixes.

*And finally there are the ad nauseam amount of times the gold shares will mysteriously go lower while the bullion price is moving up, only to have gold nailed the next day. Free markets don’t trade this way time and time again. This is part of The Gold Cartel’s operations. They are constantly fleecing investors, money managers and gold companies alike with impunity.

When it comes to US financial market policy, I’m sure most of you have heard of the US Strong Dollar Policy, set in motion by former Treasury Secretary Robert Rubin. Now, a policy needs something besides verbiage. Can anyone here outside the GATA camp explain to me how the US actually implemented this policy?

The rigging, or manipulation of the price of gold, is what the Strong Dollar Policy is all about – which is why, even when the dollar is tanking, Treasury Secretary Snow continues to talk about this policy.

From Gibson’s Paradox we know a motive for the rigging of the gold price has been to keep US interest rates lower than they otherwise would have been. What other motives would Rubin, Summers, Snow have for keeping the price of gold artificially suppressed?

Another easy one – think of the predictable diatribe you hear from ALL the mainstream investment world pundits when the price of gold is rising sharply:

*INFLATION, CRISIS INVESTING, SAVE HAVEN, DOLLAR TANKING! All of it is negative for US financial markets – and gold hasn’t even done anything of consequence yet – which is your motive why The Gold Cartel continues to prevent the price from going where it ought to be.

For me one of the most disturbing aspects of the artificial suppression of the price of gold is the acquiescence on the part of the US financial press to The Gold Cartel. The notion that we have a free press in the US is a joke. We have a bought press, not a free one.

Not only does the gold establishment refuse to deal with GATA’s evidence of gold price manipulation, the US financial market press will not even mention the name GATA, much less print what we have to say. Let me offer some concrete examples why I know this is so:

*I’ve met with the Bloomberg news gold people and contacted them numerous times over the years. NADA.

*GATA went to Washington and New York to meet with WSJ reporters, Dallas too. Result: Zip.

*A distinguished Washington attorney spent years cultivating his friend, Nell Henderson, the business editor of the Washington Post over the gold price manipulation issue. They even go to the opera together. Result: nothing.

*A well known Editor at Barron’s would only accept a Letter to the Editor by Chris Powell if Chris would rewrite it to his satisfaction. What are you kidding me?

GATA’s press releases are not given the time of day anywhere in the US. Reuters pays scant attention, etc.

Our so-called free US financial press is petrified of taking on the biggest money and power in the world. Business is business. So Be It, US financial market press - but don’t proclaim we have a free press in America. How are we much different than the controlled press of the old Soviet regimes?

How pitiful it is that GATA has received more press from

*Franfurter Allgemeigne

*Der Spiegal

*Russian Business Weekly

than we have received in over six years from the media in America.

One of the purposes of this conference is to discuss ways GATA’s findings can reach the world financial market press. For once the big money in the world knows what we know – where the price of gold is headed and why – The Gold Cartel has had it.

The impact on central bank sellers, those not obliged to the cabal, could be profound. With the knowledge the price of gold is going MUCH higher, the new rage regarding central bank gold activity could easily become who is buying, not selling.

For example, last Thursday Russian Finance Minister Alexei Kudrin said that Russia’s gold and foreign exchange reserves are going to double due mainly to surging oil revenues. The Russians must decide where to employ those revenues. Should they choose to put a significant amount in gold, it could blow the price sky high AND increase their gold revenues coming from their mines at the same time.

The GATA camp has discovered a gold cancer. The longer this cancer goes untreated, the greater impact it will have on financial markets around the world. As it stands now, I believe the manipulation of the gold price to be the lynchpin mechanism/reason for the market bubbles prevailing in the US. The longer the price manipulation goes on, the greater the bubble bursts will be. Better the US financial markets take chemotherapy-like treatments now regarding the gold truth than stay in denial only to face certain death further down the road.

When I was a kid, we all routed for the early George Washington-type Americans who took on the tyranny of the British and fought to make us a free country. There would not have been one youth in our entire nation who routed for the British when watching the movies of the day about our fight for independence in 1776. Who could be against those fighting to right a terrible wrong?

What few Americans appreciate is our that country evolved because of a very few dissenters who vocifer3ously protested what the British were doing. These few eventually galvanized the entire country, most of whom were previously content to go along with the status quo; the accepted, mainstream British line of thinking. This is how America was founded and gained its freedom.

It is GATA’s hope this conference will be a galvanizing catalyst to right another terrible wrong – that the energy emanating from Dawson City will successfully expose what The Gold Cartel has done and why. For when this happens, gold will be become a free and fair market again - and the world will be better off for it.

Thank You.