Real Money / Vital Resource: 10/19 Gold Anti-Trust Action Committee - Exposing the long-term manipulation of the gold market

Gold Anti-Trust Action Committee - Exposing the long-term manipulation of the gold market

Eric Sprott interviewed on gold and QE2

October 18, 2010 at 8:46 PM

9:43p ET Monday, October 18, 2010

Dear Friend of GATA and Gold:

Financial journalist Ron Hera has gotten an interview with Sprott Asset Management Chairman and CEO Eric Sprott that covers gold market manipulation as well as the declining usefulness of government "stimulus" programs. The interview is headlined "Eric Sprott on Gold and QE2" and you can find it at GoldSeek here:

http://news.goldseek.com/GoldSeek/1287410400.php

And at 321Gold here:

http://www.321gold.com/editorials/hera/hera101810.html

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

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Prophecy Resource Goes Into Production
at Ulaan Ovoo Coal Mine in Mongolia

A commission appointed by Mongolia's Ministry of Mineral Resources and Energy has conducted the final permit inspection at Prophecy Resource Corp.'s Ulaan Ovoo mine site and has instructed the company to begin coal production. Prophecy Resource (TSX.V: PCY) has begun production of its first 10,000 tonnes of coal as a trial run of supply to be taken by rail to electric power stations in Darkhan and Erdenet, Mongolia's second and third largest cities after the capital, Ulaanbaatar. The company is the second-ever Canadian mining company to get a permit to mine in Mongolia and start production there.

For the company's complete announcement, please visit:

http://www.prophecyresource.com/news_2010_oct14.php

Join GATA here:

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
A

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on
January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

China propels gold and should keep at it, Lassonde tells King World News

October 18, 2010 at 8:01 PM

9p ET Monday, October 18, 2010

Dear Friend of GATA and Gold:

Eric King of King World News today interviewed mining entrepreneur Pierre Lassonde, who, in excerpts posted at the Internet site, reported enormous physical gold demand from China. Lassonde added that China's central bank needs a lot more gold to diversify its foreign exchange reserves. King's interview with Lassonde is headlined "Pierre Lassonde -- Strong Forces Propelling Gold" and you can find it at King World News here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/18_P...

Or try this abbreviated link:

http://bit.ly/aUULlz

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

ADVERTISEMENT

Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property

On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.

Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."

For complete information on Sona Resources Corp. please visit:
www.SonaResources.com

A Canadian gold opportunity ready for growth

Join GATA here:

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

U.S. won't devalue dollar, Geithner says, overlooking last 97 years

October 18, 2010 at 7:34 PM

By Jim Christie
Reuters
Monday, October 18, 2010

http://www.reuters.com/article/idUSTRE69H4VO20101018

PALO ALTO, California -- U.S. Treasury Secretary Timothy Geithner on Monday sought to ease fears the United States was actively weakening the dollar to gain an export edge, saying no country could devalue its way to health.

"It is not going to happen in this country," Geithner said of dollar devaluation to Silicon Valley business leaders here.

"It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity, to (be) competitive," Geithner added. "It is not a viable, feasible strategy and we will not engage in it."

... Dispatch continues below ...

On Friday, the dollar index hit a 10-month low against a basket of major currencies, while the greenback has been plumbing fresh 15-year lows against Japan's yen. Many U.S. trading partners have expressed concerns that further money creation by the Fed will push the dollar down further.

Asked if the dollar would lose its status as the world's reserve currency, the Treasury chief said, "not in our lifetime."

Geithner said it was important for the United States to maintain growth, but also demonstrate that it could improve its long-run fiscal prospects and restore budget discipline.

The U.S. Treasury chief also reiterated his views that he believes China will continue to lift the value of its yuan currency to aid the rebalancing of its economy away from exports and toward domestic growth.

Asked how much higher China should allow the yuan to rise, Geithner said: "Higher."

"You can't know how far it should go. What you know now is that it's significantly undervalued which I think they acknowledge and it's better for them and of course very important for us that it move. And I think it's going to continue to move," Geithner said.

He added that he delayed a report on whether Beijing manipulates the yuan's value for trade advantage, saying he wanted to take advantage of upcoming meetings of the Group of 20 developed and emerging economies to build multilateral support for a China move on the yuan.

* * *

Join GATA here:

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
A

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on
January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Eric King: Gold shares to outperform going forward

October 18, 2010 at 10:51 AM

11:50a ET Monday, October 18, 2010

Dear Friend of GATA and Gold:

King World News proprietor Eric King today compares the performance of gold against the performance of gold shares and finds the latter climbing the proverbial "wall of worry" -- that is, underperforming the metal. King thinks that will change and his commentary is headlined "Gold Shares to Outperform going Forward." You can find it at King World News here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/18_G...

Or try this abbreviated link:

http://bit.ly/aep8C8

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

ADVERTISEMENT

Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property

On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.

Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."

For complete information on Sona Resources Corp. please visit:
www.SonaResources.com

A Canadian gold opportunity ready for growth

Join GATA here:

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
A

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on
January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Silver Enthusiast: Grading Jon Nadler

October 18, 2010 at 10:40 AM

11:40a ET Monday, october 18, 2010

Dear Friend of GATA and Gold (and Silver):

The Silver Enthusiast blog seems to have done a pretty good job documenting the perpetual bearishness of an especially widely quoted precious metals market analyst who doesn't seem to have ever found a good day to buy gold for the last thousand dollars of its move up, nor a good day to buy silver for the last $15 of its move up. The Silver Enthusiast's analysis is headlined "Grading Jon Nadler" and contains links to many of his commentaries. You can find it here:

http://silverenthusiast.com/grading-jon-nadler/

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

To contribute to GATA, please visit:

http://www.gata.org/node/16

South Korea's central bank looks to gold

October 18, 2010 at 7:37 AM

By Christian Oliver and Song Jung-a
Financial Times, London
Monday, October 18, 2010

http://www.ft.com/cms/s/0/74576bd6-da90-11df-81b0-00144feabdc0.html

South Korea, holder of the world's fifth-biggest foreign exchange reserves, is considering expanding its small holdings of gold to diversify its dollar-heavy portfolio.

"We need to give careful consideration to the matter of increasing gold volumes in the foreign reserves," Kim Choong-soo, governor of South Korea's central bank, told a parliamentary committee on Monday.

Such a move would have a powerfully bullish effect on the gold market. With just 14 tonnes of gold -- or 0.2 per cent of $290 billion reserves -- Seoul is one of the smallest holders of gold among large economies. The world average is about 10 per cent, according to the World Gold Council, while countries such as the US, Germany, and France hold well over 50 per cent of their reserves in gold.

... Dispatch continues below ...

ADVERTISEMENT

Sona Resources Expects Positive Cash Flow from Blackdome,
Plans Aggressive Exploration of Elizabeth Gold Property

On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia.

Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013."

For complete information on Sona Resources Corp. please visit: www.SonaResources.com

A Canadian gold opportunity ready for growth

South Korea would join other Asian countries including China, India, Thailand, and Bangladesh in adding gold to its reserves. With emerging market countries buying gold and central banks in Europe halting their programmes of sales, central banks are set to become net buyers of gold this year for the first time since 1988, according to GFMS, the precious metals consultancy.

That trend is one of the most important changes in the gold market in recent history, and has helped drive the metal's rally to a series of fresh highs. On Thursday it touched $1,387.10 a troy ounce, an all-time nominal record.

South Korea's central bank stressed any moves would have to be "cautious" and "prudent" because of the high gold price. One person familiar with the Bank of Korea's stance on the metal said it was "receptive to the idea" of buying gold but stressed that there remained "differences of views" within the central bank.

Historically, Seoul has favoured Treasury bills over commodities because they are more liquid and can be used as a weapon to control the notoriously volatile won.

However, this reliance on the dollar, which makes up 63 per cent of reserves, has attracted widening criticism in recent years as commodity prices have soared. The rest of Seoul's reserves are in euros, sterling, and yen.

Lee Ji-pyeong, senior researcher at the LG Economic Research Institute, said South Korea should have started building up gold stocks last year. Increasing its holdings now would be difficult but worthwhile, he said.

"The bank is likely to remain hesitant, waiting for gold prices to come down, which is unlikely," he said. "Although gold prices have risen sharply in recent months, the upward trend is likely to continue for now as the dollar is likely to remain weak, with Ben Bernanke talking about additional easing measures and central banks worldwide likely to keep buying gold amid ultra-low interest rates."

Another issue for central banks looking to diversify into gold is the size of the market. Relative to the size of foreign exchange reserves, the gold market is tiny, meaning any large purchases could drive up the price. An increase in Seoul's gold holdings of just a few percentage points would translate into 100-200 tonnes of purchases -- a significant additional source of demand compared to annual production from mines of just 2,500 tonnes.

As one of the world's leading reserve holders and this year's president of the G20 leading economies, Seoul has advocated a system of global financial safety nets that might encourage many countries, South Korea included, to hold smaller reserves.

Many economists are sceptical that this proposal, which is steered by the International Monetary Fund, could help reduce reserves, which they argue are at a level far beyond what is needed to defend against financial shocks.

* * *

Join GATA here:

The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/

New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16