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James Turk: Time for an accurate accounting of Germany's gold
9p ET Tuesday, July 26, 2011
Dear Friend of GATA and Gold:
GoldMoney founder and GATA consultant James Turk has reiterated calls for a candid accounting of Germany's gold, which GATA long has suspected has been swapped with U.S. gold and sold into the market as part of the Western central bank gold price suppression scheme.
Last December GATA's friend the German journalist Lars Schall pressed the Bundesbank with pointed questions about its gold swaps and received only a demand for secrecy. (See http://www.gata.org/node/9363.) The Bundesbank replied to Schall: "In managing foreign reserves, the Bundesbank fulfils one of its mandated tasks as an integral part of the European System of Central Banks. We trust you will understand that we are not able to divulge any further information regarding this activity. Particularly with respect to the confidential nature of information about where gold holdings are kept, we are unable to go into any greater detail concerning exact locations and the quantities stored at each of these. Likewise, owing to the strategic nature of the activity, we are not at liberty to provide you with more detailed information about gold transactions."
Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site
The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing.
The conference call is 18 minutes long and you download an mp3 of it here:
Or play back the call here:
Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here:
But the Bundesbank's response was at least an acknowledgement that Western central bank gold reserves just don't sit around aimlessly, waiting for some emergency. Rather, they are used in an "activity" of "strategic nature," which can be construed only as currency and commodity market rigging.
Turk writes this week that the Bundesbank's annual report says the bank "owns E83,939 million of 'gold and gold receivables.' Surprisingly, it does not distinguish between these two fundamentally different assets, nor does it report how much of each it owns. Clearly gold stored safely and securely in the Bundesbank's vault in Frankfurt has a different level of risk than gold that has been loaned out. Physical gold is a tangible asset and therefore does not have counterparty risk. But a loan -- regardless whether you are lending euros, dollars, or gold -- is only as good as the creditworthiness of the borrower. This lesson was learned the hard way, for example, by the central bank of Portugal. It had loaned gold to Drexel Burnham Lambert, and that gold receivable was still outstanding when this bank failed two decades ago."
Pressed by GATA's freedom-of-information demand for its own gold records, the U.S. Federal Reserve acknowledged, perhaps inadvertently, in 2009 that it has gold swap "arrangements" with foreign banks that the public and the markets must not be permitted to know about. (See http://www.gata.org/node/7819.)
With the Bundesbank's annual report Turk once again has shown that the gold price suppression scheme is fully documented in government records available to any journalist who has a professional appetite for more than press releases. Turk's commentary is headlined "Germany's Gold: It's Time for an Accurate Accounting" and you can find it at GoldMoney here:
Turk will speak at GATA's Gold Rush 2011 conference in London on Thursday-Saturday, August 4-6:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Prophecy Platinum Reports 10.97 Million Ounces Inferred
and 1.04 Million Ounces Indicated PGM+Gold in Yukon
An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says.
The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper.
Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P.
For the complete press release on the Wellgreen report, please visit: