Stewart Thompson: Central banks will push gold up to rescue asset prices


10:30p ET Tuesday, July 27, 2010

Dear Friend of GATA and Gold:

In commentary posted tonight at 321Gold, newsletter writer Stewart Thompson joins those who expect central banks to revalue gold upward and devalue their own currencies. Thompson writes:

"There is a middle step between quantitative easing and money printing, and it is gold revaluation. No confiscation is needed in the current crisis to make revaluation 'work,' because so few people own gold. The major central banks are already committed to major long-term gold buy programs (the opposite of the 1990s), and these buy programs are the mechanism of gold revaluation under a sort of guise of currency reserves diversification.

"The central 'banksters' aren't stupid; they didn't get the market all wrong and accidentally sell their gold holdings into the end of the gold bear market, any more than the current buy programs are 'knee-jerk' reactions to a rising gold price.

"The buy program is about gold revaluation, not rushing to buy gold as an asset. As QE is more and more broadly deemed a failure in the fund community, the central banks will step up their gold buy programs, stepping UP the price they pay for the gold, with tremendous vigor.

"The buy programs of the central banks are not about adding gold to diversify their forex reserves; they are about devaluing paper money to raise asset prices, as blown marked-to-model OTC derivatives can then be marked to market."

Thompson's commentary is headlined "It IS 2008 Again. So What's in Play?" and you can find it at 321Gold here:

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


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:

A Canadian gold opportunity ready for growth

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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: