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Central bank gold sales equaled return of leased gold

Section: Documentation

12:30p ET Monday, November 29, 2010

Dear Friend of GATA and Gold:

Excerpts in English from GATA consultant Dimitri Speck's recent book, "Geheime Goldpolitik" ("Secret Gold Politics"), which so far has been published only in German, have been posted at the book's Internet site and make fascinating reading.

Among other things, Speck shows that the gold sold by central banks since 2001 was equaled by the leased gold returned to them. This strongly supports suspicions long expressed by GATA and others that the supposed central bank gold sales of the last decade were just cash settlements for leased gold that could not be recovered by the central banks without exploding the gold price upward and bankrupting the investment banks that had leased the gold, and that the "sales" were not really putting any metal into the market, a suspicion supported by the steady rise of the gold price even as all that central bank gold supposedly was being sold.

Speck also reports that 66 percent of Germany's gold reserve is held in the United States and 21 percent in London. This likely puts the German gold at the center of the gold price suppression scheme managed by the U.S. Federal Reserve and Treasury Department and the Bank of England. As the German central bank, the Bundesbank, itself acknowledged last year in a statement to GATA consultant Rob Kirby, Germany keeps much of its gold at "gold trading centers" abroad "in order to conduct its gold activities":

You can find the English excerpts from Speck's "Geheime Goldpolitik" here:

A week ago your secretary/treasurer wrote to the Bundesbank asking whether it has ever engaged in gold swaps with any agency of the United States government. The Bundesbank's press office quickly acknowledged the inquiry and assigned it a reference number: 2010 / 019791. Of course we don't expect a quick and honest answer to such a sensitive question, but an honest answer just might be hastened if GATA's German friends also began pressing the question with the Bundesbank and with their elected representatives. The e-mail address of the Bundesbank's press office is:

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


Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.

Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia."

The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.

For the complete press release, please visit:

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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.

-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.

-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.

Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."

For the company's full press release, please visit: