Ted Butler: U.S. government is part of the war on silver


11:38a ET Monday, July 23, 2012

Dear Friend of GATA and Gold (and Silver):

Silver market analyst Ted Butler writes today that he has come to believe that the U.S. government, while not the instigator of the silver price manipulation scheme, has become a participant in it and that the U.S. Commodity Futures Trading Commission, which has purported to be investigating the silver market for nearly four years, has been neutered by the U.S. Treasury Department, which has given its market-rigging agent, JPMorganChase & Co., immunity from criminal prosecution.

None of this should be so surprising, as even Butler himself has noted that when the U.S. government demonetized silver in 1965, President Lyndon B. Johnson proclaimed that the government would intervene in the silver market as necessary to keep the price down, presumably by dishoarding from the government's silver stockpile.

Signing the demonetization legislation, the president said:

"Some have asked whether our silver coins will disappear. The answer is very definitely -- no. Our present silver coins won't disappear and they won't even become rarities. We estimate that there are now 12 billion -- I repeat, more than 12 billion -- silver dimes and quarters and half dollars that are now outstanding. We will make another billion before we halt production. And they will be used side-by-side with our new coins. Since the life of a silver coin is about 25 years, we expect our traditional silver coins to be with us in large numbers for a long, long time. If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be and it will be used to keep the price of silver in line with its value."

Johnson's comments have been archived with other presidential documents by the University of California at Santa Barbara here:


Of course Johnson's promises about keeping silver coins in circulation and keeping silver's price down were not fulfilled. The government's silver stockpile was exhausted and U.S. silver coins did indeed disappear from circulation. But the government's interest in suppressing the price of the monetary metal, suppressing the value of a competitive currency, endures.

Indeed, like so much in the U.S. government's gold price suppression scheme, the silver price suppression scheme is largely a matter of official public record rather than mere "conspiracy theory." But GATA has no idea what it will take to induce mainstream financial journalists to examine the official public record, even as we keep urging them to do so.

Butler's commentary is headlined "The War on Silver" and it's posted at GoldSeek's companion site, SilverSeek, here:


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


Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters

From a Company Press Release
November 22, 2011

VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling.

"We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company."

Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered.

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


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Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment:
38% Pre-Tax IRR, $3.0 Billion NPV, and a 37-Year Mine Life

Company Press Release

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory.

The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57.

The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows:

Payback period: 3.55 years
Initial capital investment: $863 million
IRR pre-tax (100% equity): 38 percent
NPV pre-tax (8% discount): $3 billion
Mine life: 37 years
Total mill feed: 405.3 million tonnes
Mill throughput: 32,000 tonnes per day

Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics."

For the complete press release, please visit: