Paper gold and silver markets are a joke, Eric Sprott tells Chris Martenson


10:40p ET Tuesday, July 5, 2011

Dear Friend of GATA and Gold (and Silver):

Financial writer Chris Martenson today published a spectacular interview with Sprott Asset Management Chairman Eric Sprott that stresses manipulation of the gold and silver markets. Sprott simply destroys any remaining pretense that they are markets at all. He also refutes suggestions that gold and silver are in bubbles, and recounts the difficulty his investment house had last year in pitching its silver fund to institutions. His exchange with Martenson -- including Martenson's own observations -- about the silver crash engineered by the shorts in May is especially incisive and essential reading.

Sprott remarks:

"I think Comex is a joke and I think all the paper markets are a joke. ... We trade a billion ounces of silver a day -- a billion ounces. The world produces 900 million ounces a year. Rather than us saying, 'Well, the buyers are speculators,' what are the sellers thinking? They are trading a billion ounces in the sell side, and there is all of 28 million ounces in the Comex. There is obviously a shortage of silver. What is the guy selling it thinking? He is the guy with the unlimited losses. At least the guy long silver knows what his loss can be, but the guy shorting silver? We have already seen silver from a year ago go up by 150 percent. Just think of the outside losses. So I do not really think that the Comex and the LBMA are serving much purpose in terms of supposedly being involved in the physical market. They are not physical whatsoever. They are just paper markets."

Sprott and Martenson also speculate on the remonetization of both precious metals.

Audio and a transcript of the interview are headlined "Paper Markets Are a Joke: Prepare for Bullion Prices to Go Supernova" and you can find them at Martenson's Internet site here:

Sprott will speak at GATA's Gold Rush 2011 conference in London in August:

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


Prophecy (TSXV: PCY) Secures Russian Far East Seaport Allocation
and Updates Ulaan Ovoo Mine Production

Company Press Release, June 14, 2011

VANCOUVER, British Columbia -- Prophecy Coal Corp. TSX-V: PCY)(OTCQX: PRPCF)(Frankfurt: 1P2) has arranged with the Port of Sovgavan in the State of Khabarovsk, Russia, so the company will have initial access to port allocation of 25,000 tonnes of coal per month starting this month, potentially expandable to 50,000 tonnes per month, representing 300,000 to 600,000 tonnes annually. Prophecy also will be assigned a coal storage area at the port.

This arrangement provides Prophecy's Ulaan Ovoo thermal coal mine with immediate access to the Asian seaborne export coal markets. Sovgavan is strategically located on the seaboard of the Russian Far East. The port is privately owned and can accommodate seagoing vessels of up to 160 meters in length, with the depth of loading site of 9.5 meters. The port has loading capacity of 6,000 tonnes per day and direct connections to Trans-Siberian railroads and uncongested Russian state highways.

Securing the port opens Prophecy to a significant number of coal buyers, and the company is placing top priority to conclude rail transport within Russia and coal offtake contracts.

Prophecy's Ulaan Ovoo mine commenced production in 2011. So far this year the mine has produced 200,000 tonnes of coal, which are being stockpiled. The average quality is 4,200 kcal/kg NAR with 5 percent ash and 0.5 percent sulphur. Those attributes compare favorably to the coal being purchased by local Russian and Mongolian power plants.

For the complete company statement, please visit:

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Golden Phoenix Shareholder Conference Call To Discuss
Start of Gold Production at Mineral Ridge Gold Project

Company Press Release, June 27, 2011

SPARKS, Nevada -- Golden Phoenix Minerals, Inc. (GPXM) has scheduled its second quarter 2011 shareholder conference call for Tuesday, July 12. Shareholders are invited to participate in the call, will begin at 1 p.m. Pacific and 4 p.m. Eastern time.

Company management will provide updates on accomplishments in the second quarter and explain how the company's royalty mining growth strategy is expected to unfold in the second half of the year.

Topics to be updated include the start of gold production at Mineral Ridge, developments on the Vanderbilt Silver and Coyote Fault Gold projects, the Shining Tree and Peru projects, and drilling plans for 2011. Questions from shareholders will be answered as well.

"Thirteen months after closing the joint venture between Golden Phoenix and Scorpio Gold, the Mineral Ridge property has entered gold production," said Tom Klein, CEO of Golden Phoenix. "Last week both companies completed joint tours of Mineral Ridge. We look forward to providing a complete update on our conference call."

Participation in the shareholder conference call can be arranged by telephone, webcast, or Skype. To participate, dial 952-356-0015 and enter Conference ID 419582#.

For the company's full press release, please visit:

Golden Phoenix (GPXM) is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here: