Tinfoil hats are earned just by questioning central banks


11:21a ET Monday, July 12, 2010

Dear Friend of GATA and Gold:

The enormity and mystery of the gold swaps recently undertaken by the Bank for International Settlements without any announcement seem to have shaken some ordinarily respectable and respectful observers into doubt.

For example, for years GATA has been trying without success to get the attention of The Telegraph in Britain. But without any prompting on Sunday the newspaper quoted GATA's Adrian Douglas about the BIS gold swaps:


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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:


And today, for the second time in a week, Dennis Gartman of The Gartman Letter cited GATA's work more or less approvingly:

"Gold is stronger this morning, and it is stronger in non-US-dollar terms than it is in dollar terms. As we write, gold is trading E960, having traded ever-so-shortly to E935 at one point last week. The trend in both terms -- US dollars or EURs -- remains upward, and for now so long as spot gold remains above $1,180 and above E935 we shall remain bullish.

"Again, we are not gold bugs here at The Gartman Letter. We do not believe that the world is coming to an end. We do not believe that depression lies ahead. We do not believe in black helicopters, nor in the Bilderbergs, nor in other strange conspiracies that the real gold bugs of the world believe in.

"However, following the recent BIS gold swaps and try as we might to follow the logic of those swaps through to the end, we find ourselves wondering: Might GATA have been right all along? Might it be possible that some large gold dealer or bank or international entity has made itself short of gold and finds that covering that position is harder than it had thought?

"Then we shake our head and say, 'Nah, it can't be.' But can it?"

The people in GATA aren't gold bugs as much as free-market bugs. We don't believe that the world is coming to an end, nor do we believe in black helicopters. We haven't pursued the Bilderbergs or any "strange conspiracies." Rather, we have tried to pursue public policy and the evidence that what was once done openly by governments -- the suppression of the price of gold -- lately has been undertaken surreptitiously, central banking generally and the Bank for International Settlements particularly operating so surreptitiously. We have discovered and publicized many official records of this surreptitious price suppression.

To question the surreptitious actions of central banks it is not necessary to expect the end of the world, nor to become obsessed with black helicopters or the Bilderbergs, nor even to believe in returning the world financial system to a gold standard.

Rather, it is necessary only to want to know what is, in the belief that the valuation of all the capital, labor, goods, and services in the world is a matter of public interest that should be determined a little more openly and democratically than is now the case under central banking.

For many years such curiosity has earned GATA tinfoil hat after tinfoil hat. If, as it is starting to seem, Gartman wants one too, all he has to do is keep asking -- not us but the central banks.

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

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New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel

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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