South African metals analyst complains of silver price manipulation


Silver 'Robbed of its Lustre'

From the Sunday Times
Johannesburg, South Africa
Sunday, July 11, 2010

There is evidence to support allegations that the price of silver has been manipulated and suppressed by the large US bullion banks, says precious metals analyst David Levenstein, of Lakeshore Trading [in Johannesburg].

"These companies continually use the futures markets to create price distortions in the market. At the moment, there is a huge [disparity] between the price and the real market situation," says Levenstein.

Historically, silver's price moves, in percentage terms, are greater than those of gold.

But unlike gold the price of silver is way off its all-time high, when it traded at above $50/oz (R380/oz). The demand for silver has exceeded supply for almost 20 years.

But why is the price of this metal so depressed? Levenstein asks.

In 1940 the US government owned almost half the world's 10 billion ounces of silver.

Today, it owns none.

The only way to bring the supply and demand into balance is going to be higher prices.

Levenstein, who began trading silver in 1979, believes that silver is going to be one of the best investments of the decade.


Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

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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