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J.S. Kim: Banks are rigging all commodity markets along with gold

Section: Daily Dispatches

5:19p ET Tuesday, October 19, 2010

Dear Friend of GATA and Gold:

J.S. Kim, managing director of SmartKnowledgeU, a financial research and consulting firm, and editor of The Underground Investor Internet, site has written a wonderful essay concluding that all world commodity markets are manipulated by investment banks and governments and none of those markets is free. Kim writes of gold particularly:

"When I started discussing enormous fraud in the pricing behavior of gold markets six years ago, people regularly ridiculed me for my beliefs, especially whenever I publicly blogged about my beliefs. Back then my beliefs were grounded in my own research as well as the very substantial mountain of evidence provided by GATA that had not yet made its way into the general consciousness of the mainstream public. Today public beliefs about gold price suppression schemes have evolved 180 degrees. Now deniers of gold price suppression schemes, not I, are the ones viewed as naive. I believe the same realizations will eventually happen with all commodities, not just gold."

Kim is not alone in his conclusion. In his 2001 essay, "The Debasement of World Currency: It Is inflation, But Not as We Know It," the British economist Peter Warburton described the commodity market price suppression achieved by the explosion of derivative products:

Kim's essay is titled "Inside the Illusory Empire of the Banking Commodity Con Game" and you can find it at The Underground Investor here:

Or try this abbreviated link:

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 Resource Goes Into Production
at Ulaan Ovoo Coal Mine in Mongolia

A commission appointed by Mongolia's Ministry of Mineral Resources and Energy has conducted the final permit inspection at Prophecy Resource Corp.'s Ulaan Ovoo mine site and has instructed the company to begin coal production. Prophecy Resource (TSX.V: PCY) has begun production of its first 10,000 tonnes of coal as a trial run of supply to be taken by rail to electric power stations in Darkhan and Erdenet, Mongolia's second and third largest cities after the capital, Ulaanbaatar. The company is the second-ever Canadian mining company to get a permit to mine in Mongolia and start production there.

For the company's complete announcement, please visit: