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Michael Snyder: People are realizing that LBMA system has little gold
11a ET Sunday, May 9, 2010
Dear Friend of GATA and Gold:
Michael Snyder, editor of The Economic Collapse blog, writes this week:
"Anyone who follows the gold market knows that big financial institutions regularly work to suppress the price of gold. In fact, one industry insider recently decided to be a whistleblower and came forward with 'smoking gun' evidence of price manipulation in the precious metals markets, but the CFTC didn't do a thing about it.
"Fortunately, the overwhelming demand for gold is now pushing the price up despite efforts to suppress it.
"In addition, once it becomes apparent that most of the "gold" that is traded in the world is not backed by the actual metal itself, the price of gold will go even higher.
"For years, almost everyone has assumed that the London Bullion Market Association (LBMA), the world's largest gold market, had actual gold to back up the massive 'gold deposits' at the major LBMA banks.
"But that is just not the case.
"People are now starting to realize that there is very little actual gold in the LBMA system.
"When most people think they are buying 'gold,' what they are actually buying are just pieces of paper that say they own gold.
"Egon von Greyerz of Matterhorn Asset Management in Switzerland recently elaborated on this point. He says that 'a lot of people who have studied it closely are convinced that there is a major shortage in physical gold at LBMA. LBMA trades around 700 tons net of gold daily. That is 25 percent of world annual production and around $6 trillion annually. To back that amount of trading on a 100-percent reserve ratio basis, it would need several years' production of physical gold, which they definitively haven't got.'"
Snyder's commentary is headlined "Has Gold Become a New Reserve Currency?" and you can find it at the Economic Collapse Blog here:
http://theeconomiccollapseblog.com/archives/has-gold-become-a-new-reserv...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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:
http://www.prophecyresource.com/news_2010_mar11b.php
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Preliminary Feasibility Study Completed for Seabridge Gold's KSM Project
Study Reports Reserves of 30.2 Million Oz. Gold, 7 Billion Lbs. Copper,
133 Million Oz Silver, 210 Million Lbs. Molybdenum
Base Case Life of Mine Cash Operating Costs Estimated at $144/oz. Gold Produced
(Net of Base Metal Credits)
Toronto -- Seabridge Gold Inc. has announced results from a National Instrument 43-101 compliant preliminary feasibility study of its 100-percent owned KSM project in northern British Columbia, Canada. The study was prepared by Wardrop, a Tetra Tech company, a major international engineering and consulting firm.
Seabridge President and CEO Rudi Fronk says, "The study confirms that the KSM project now hosts the largest gold reserve in Canada and one of the largest in the world. KSM is projected to provide an extraordinary mine life of more than 35 years with estimated cash operating costs well below the current average of the major gold producers. Estimated capital costs are in line with those of comparable, large-scale, undeveloped gold-copper projects and KSM has the advantage of being located in a low-risk jurisdiction."
For the complete Seabridge Gold statement:
http://www.seabridgegold.net/readmore.php?newsid=283
