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IMF rejects investment house bids for gold

Section: Daily Dispatches

5:56p ET Friday, March 26, 2010

Dear Friend of GATA and Gold:

Today we welcome Frank Holmes, CEO of U.S. Global Investors in San Antonio, Texas, to the ranks of tin-foil hat wearers, rent-seeking parasites, and charlatans, on account of the interview he has just given to Alex Steele of Kitco News.

First, Holmes disclosed that his friend Eric Sprott, CEO and senior portfolio manager for Sprott Asset Management in Toronto, who may own Canada's largest collection of tin-foil hats, recently tried to buy gold from the International Monetary Fund and was refused. Coincidentally, GATA learned this week on the best authority that a financial house far bigger than Sprott also recently tried to purchase gold from the IMF, also was refused, and wasn't very happy about the refusal.

Ever since its unsatisfactory correspondence with the IMF in April 2008 GATA has maintained that the IMF has no gold at all and that the IMF's supposed gold sales are merely bookkeeping entries between central banks enveloped in endless agitprop to scare the gold market down:

If you doubt this, try asking the IMF yourself: Exactly where is the IMF's gold kept? In exactly what quantity in what vaults? What are the refineries of the bars and the bar numbers? Is the IMF's supposed gold segregated from the gold reserves of its member countries or just mixed in with those reserves? When the IMF recently claimed to have sold gold to India, Sri Lanka, and Mauritius, did any gold leave any vault and move to another vault? If so, how much was moved from where to where? Can anyone outside the IMF even see the IMF's supposed gold? Will the IMF provide public access to its gold records, or will it conceal those records just as the U.S. Federal Reserve admits concealing its gold swap agreements with foreign banks?

Fortunately for the IMF, the financial press never goes beyond reprinting IMF press releases.

... Dispatch continues below ...


Prophecy Resource Corp. Appoints Rob McEwen to Advisory Board

Prophecy Resource Corp. (TSX.V: PCY, OTC: PCYRF) is pleased to announce the appointment of Rob McEwen to the company's Advisory Board. McEwen is a leading Canadian mining industry entrepreneur. He is the chairman and CEO of U.S. Gold Corp. and Minera Andes Inc. McEwen was the founder and former chairman and CEO of Goldcorp Inc., whose Red Lake Mine in northwestern Ontario, Canada, is considered to be the richest gold mine in the world. During his tenure at Goldcorp, McEwen transformed the company from a collection of small companies into a mining powerhouse, growing its market capitalization from $50 million to approximately $8 billion.

For Prophecy Resource Corp.'s complete statement:

In addition, Holmes told Kitco News that the gold market is manipulated by central banks. He remarked: "There's a lot of manipulation done by governments around the world in the currency markets, which affect the bond markets. It's the normal course because gold is the ultimate money. They're going to do what's in their best interest."

You can hear Holmes' interview with Kitco News at the link below. It carries a series of videos. The interview with Holmes is activated by clicking on the gold bar image in the series of images at the right side of the page.

Congratulations to Kitco on its appointment of a news editor --

-- and on Kitco's seeming new enthusiasm about its own product.

Zero Hedge quickly has commented on the Kitco News inteview with Holmes here:

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

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