Hinde Capital's gold report draws on GATA's work


9:38p ET Thursday, June 17, 2010

Dear Friend of GATA and Gold:

Hinde Capital in London, whose CEO Ben Davies mentioned GATA on CNBC Europe on May 26 (http://www.gata.org/node/8683), has just published a wonderful report on gold that draws on GATA's work. The report is titled "Gold: The Currency of First Resort," and among other things it remarks:

"... the free market is once again dictating that gold is money. This will ultimately overwhelm any governmental suppression."

And echoing GATA's complaints about the main gold and silver exchange-traded funds:

"ETFs straddle two different investing arenas -- securities and commodities. The needs of shareholders are not necessarily addressed by the issues in the commodity market. There is not full disclosure and proper alignment of regulation between commodities and securities markets. It is not outlined that there is a conflict of interest. The two largest custodians, JPM and HSBC, hold significant OTC gold and silver derivatives as well as significant short positions on the paper gold and silver futures on the Comex exchange. In theory for every short in a commodity, the seller should be able to 'cover' the position by holding or borrowing actual inventories. It would be fair to say such custodial holdings would prove a tempting source of gold. This may be a moot point. So significant are these shorts that the CFTC has undertaken to investigate talk of market manipulation. Allegations, if proved to be founded, on ETFs would be detrimental for ETF holders. This all should be disclosed to participants. Should it also not be disclosed the relationship between such entities and the Federal Reserve System and in particular the Federal Bank of New York and how it acts as a depository for the U.S. government and Exchange Stabilization Fund?"

As far as your secretary/treasurer knows, unless they were in the crowd at GATA's presentation to fund managers at Fleming Family & Partners in London in May 2009 (http://www.gata.org/node/7409), GATA has never had any direct contact with the people at Hinde Capital, so it's great to see that the word is percolating to financial houses through ordinary channels. We'd love to buy the Hinde Capital folks a beer some time -- or, better still, love to have them buy us a beer, or three.

You can find the report at the Hinde Capital Internet site here:


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


Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:


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