By Bill Murphy

Vancouver
June 13, 2005

Hello, everyone. Good to be back in one of my favorite places in the world with some of my favorite people in the world. This is something like my tenth trip here over the last half decade.

I'm going to present a bit differently this time by speaking for 20 minutes and then I would like to field questions for 10 minutes, so you might keep a question in mind as I go along.

How many of you have heard me so often say investing in the gold shares is THE historic investment opportunity of a lifetime?

How many of you feel like that after the last 18 months of losing money in the gold share market? How many of you are pleased of late with your investments in the gold share arena? It's nice to see a few happy campers. However, for many of us our investments in this sector are 30 to 70% off their highs. Put me in that group.

And yet gold itself is HIGHER than it was 18 months ago and silver has risen by more than 25%.

So what gives? There are a number of reasons for what has transpired. The most important one is that the Gold Cartel continues to aggressively manipulate and suppress the price of gold. Second, mining costs have gone through the roof as a result of soaring energy prices, and, in certain circumstances, a falling dollar had local mining costs rising sharply compared to the dollar price of gold.

Most Canadian gold companies are not making any money at today's gold price. If companies can't make money and a bunch of white collar Mafia are going to sit on the gold price ad nauseam, there is no reason to invest in the gold companies in the next room. You are wasting your time here and you are wasting your time listening to what they, and I, have to say. There is no point putting money into a gold exploration company in the hopes of finding gold reserves only to have to mine them at a loss.

Things need not be this way - if only the gold industry would wake up to how they are being jerked around by the US-inspired bullion banking Gold Cartel and DO SOMETHING about it.

Well, something is being done, in spite of the mainstream gold world's recalcitrance, which is what I am here to talk about today, and that is GATA's Gold Rush 21 Conference in Dawson City in your Yukon Territory on August 8th and 9th,.

The purpose of GATA's conference is to bring the best minds in the gold world to a think-tank sort of environment to discuss the state of the gold market and to address its most important issue -- the manipulation of the gold price -- and then to come up with ways of confronting the perpetrators and exposing them. Once they are found out by the mainstream investment world, the jig will be up. The price of gold will go bananas.

Among those coming to this conference are the best-known and brightest men over the last 30 years in the gold and silver markets. They include:

* Ferdi Lips -- a former Swiss banker who has written four books on gold, including Gold Wars.

* John Embry -- Canada's most famous gold fund manager and as highly regarded a man as there is in Canada's gold industry.

* South Africa's Peter George, the Mr. Gold of that gold-producing giant.

* Hugo Salinas Price, who is leading the fight in Mexico to make silver everyday legal tender.

Then there is South Africa's Roger Kebble who is synonymous with gold in his native gold producing country. Also attending is South Africa's Neal Froneman, the CEO of Aflease, whose company is gaining prominence because of their uranium and gold assets.

Other prominent producing companies that will be represented in the Yukon include Golden Star Resources, whose primary business is in Ghana, ECU Silver of Mexico, and Simmer & Jack, also of South Africa.

There are also notables coming from Chile, England, Australia, etc. NONE of which will mind with mingling on a casual basis with a true genius in the money management world, Eric Sprott.

It is time to pound the table that the nefarious doings of the Gold Cartel must be ended. They are ripping all of us off and it has gone on far too long. What we are talking about is a GIANT FRAUD, like Enron.

By the way, who realized that Enron was a fraud before its share price collapsed? Anyone who questioned Enron's brilliance was ignored, or fired, as is now well known.

The fair price of gold today is at least $750. What would that sort of price do to your wasting gold share investments? What would that do to your net worth? How many more days would you be smiling with your gold share investments up anywhere from 300 to 3,000%? How would that improve your lifestyle?

Wishful thinking? Nope. It couldn't be clearer what the heinous bums in the cabal have done.

* In the past when the CRB was over 300, which it is today, gold has traded over $600.

* The traditional price relationship between gold and oil is 15 to 1. A $50 oil price should give us $750 gold.

* Oleg V. Mozhayskov, deputy chairman of the Central Bank of Russia, brought GATA to the attention of the mainstream gold world when he delivered the keynote address at the London Bullion and Marketing Association conference in Moscow on June 4, 2004. His speech was delivered in Russian. The only words he spoke in English were Gold Anti-Trust Action Committee. In that speech he stated:

"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. 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 is no mystery as to what is going on here with gold. The only mystery is why the gold industry remains so silent and acts like a bunch of cowardly sheep. After all, the Gold Cartel and its agents have told everyone what they intended to do:

* In the summer of 1998 Fed Chairman Alan Greenspan testified twice before Congress, saying, "Central banks stand ready to lease gold in increasing quantities 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 wrote the following in his memoirs: "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 an Orwellian point of view.

* There are those critics or agnostics who say they won't believe anything GATA has to say unless we come up with a smoking gun. Well, as far as I am concerned we now have one with the release of the latest Bank for International Settlements' gold derivatives statistics. They are staggering and prove GATA's case again.

According to the BIS, from July 1, 2004, to December 31, 2004, the notional amount of the gold derivatives grew from $318 billion to $369 billion, a humongous 16% increase of $51 billion. At the same time, according to Gold Fields Mineral Service, the gold producers reduced their hedge positions by a sizeable 250 tonnes (12%), or around 1/10th of total mine supply for the year.

Over the years when GATA has cited the use of lending, swaps, and derivatives by the Gold Cartel to suppress the gold price, the gold establishment (GFMS, World Gold Council, Jessica Cross of Virtual Metals) insisted that the sizeable gold derivatives were almost solely tied to producer hedging operations. Nowhere in their work is there a discussion of the use of gold derivatives outside those of the hedgers. This latest news blows them out of the water. How can they explain a stunning 16% increase of gold derivatives over the last half of last year while the gold producers reduced their hedge positions by 12%? The only explanation is that the Gold Cartel was actively managing the price rise from approximately $394 to $438 using derivatives associated with their price-capping scam.

The purpose of Gold Rush 21 is to go forward and win the day -- to take on and checkmate the clandestine maneuvers of a bunch of arrogant elitists in New York and Washington who have thwarted our once-free financial markets and once-free financial press in America.

The goal is to emerge victorious for all of us. And WE WILL. But there is one short-term stumbling block that needs be to addressed. While we are attracting top-quality attendees from all over the world, the response from Vancouver has been nearly zilch. To say that I am disappointed with the Vancouver gold community is an understatement. A great deal of time, thought, and effort has gone into the Yukon conference since last November and only Canadian gold companies and Canadian money managers and brokers are holding us back from surging. I find this incomprehensible, since an explosive gold price could be so important to the economy of your nation.

As a former professional football player with the Patriots, I know what kind of teamwork it takes to get the job done, to defeat tough opponents. If GATA were to count on the response we have received to date from the Canadian mining industry, we couldn't beat the Little Sisters of the Poor. If we can't get a dozen companies outside this room at this conference to attend GR 21, I am wasting my time coming up here.

Joe Martin runs a superb show and has wonderful speakers. You won't miss me if this is the most I can accomplish speaking in Vancouver after all these years. I am not going to waste my time in Canada if this is the best the Vancouver gold community can do. My effort on behalf of GATA needs to be spent more productively on behalf of GATA's objectives.

Life is going by. If the Gold Cartel prolongs their scam much longer, many of the firms represented here today will have diluted their equity by so much just to stay alive that gold will have to go to $1,000 per ounce for you to make the profits you already should have made by now.

This is not a gripe session. GATA WILL prevail. We will make sure of that by videotaping the conference and running with a splendid multi-complex DVD production all over the Internet world - one that will run through the next year.

The point is this: To build a championship team you cannot win with lame athletes, with those not willing to pay a price, with those not willing to win for the good of the team. GATA is building a championship team and we would like Vancouver to be a part of it.

So I am asking you to go to the mining companies at this conference and to the ones you are investing in and implore them to attend Gold Rush 21 -- for the good of all of us. This is a historic opportunity for GATA to help you and the gold mining industry to be HUGE winners.

The following quote from one of America's most famous football coaches captures GATA's spirit regarding our mission to defeat the Gold Cartel.

YES!, GATA is going to cross that goal line. YES!, GATA is going to win the day for all those who believe in free markets. We want Vancouver to be a part of this championship effort and team. Make that extra effort yourself and make sure that a dozen companies from the other room commit to making it happen too.

GATA doesn't want to win one for The Gipper. We want to win one for you, Vancouver.