CNBC notes GATA chairman's attack on 'gold cartel'

Section:

'Gold Cartel' Losing, Price to Top $3,000: Association

By Catherine Boyle
CNBC.com
Thursday, August 4, 2011

http://www.cnbc.com/id/44015192

The price of gold could almost double as central banks' reserves are depleted, according to the chairman of a gold industry association.

"You could see $3,000-5,000 to clear the market as the central banks and bullion banks run out of gold to meet the growing demand," Bill Murphy, chairman of the Gold Anti-Trust Action Committee (GATA), which is hosting a conference in London this week, told CNBC Thursday.

"Six years ago when gold was at $436 we predicted that this would happen."

GATA is backed by gold traders and investors.

Murphy and GATA believe that the gold market has been manipulated by bullion banks and central banks like the Federal Reserve and the Bank of England, as well as the International Monetary Fund (IMF).

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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.

"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

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

http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf



Not everyone agrees with their theory.

"The notion that central banks are really in control of any asset price, including gold, is probably not really very well-founded," Jens Larsen, chief European economist at RBC Capital Markets, who used to work at both the Bank of England and the IMF, told CNBC Thursday. "The gold price is one of the hardest asset prices to get a handle on."

Mark Bristow, chief executive of gold company Randgold Resources, which announced a 253 per cent rise in second-quarter profits Thursday after the rapidly rising gold price, told CNBC: "There are a lot of things driving the gold price today. One of them is fear; another is increasing demand from Asia. Our industry is ex-growth so we are not producing a lot more, so everything is in line for the gold price right now."

Larsen pointed out that the Bank of England was pressured by the Treasury to sell off more than half of the country's gold reserves between 1999 and 2002, when gold was a fraction of its current price.

Murphy spoke of a "gold cartel" and claimed that the selloff came because Goldman Sachs and the Bank of England wanted to drive the price of gold down.

"If you want the best price for your gold, you don't tell the world in advance what you are doing," he added.

He said that in London, where the Bank of England and the London Bullion Market Association are based, GATA was "in the belly of the beast."

"They're losing control of the price," he said, claiming that GATA predicted the recent record highs in the price of gold, which hit $1,672.65 this week. "When we started (in 1999), we said that the central banks were flooding the market with gold."

Central banks in South Korea, Thailand, and even debt-laden Greece have added to their gold reserves recently.

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Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.
"
Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:

http://www.thegoldstandardnow.org/gata