You are here
If you can fractionally reserve gold,1 ounce is worth 40, 50, or 100
8:09p ET Thursday, August 5, 2010
Dear Friend of GATA and Gold:
A 1-ounce gold coin in your sock drawer may be worth $1,200 to you, blogster FOFOA notes this week, but it is worth many times that in the hands of central banks and bullion banks because of their fractional-reserve gold banking system. If, as CPM Group's Jeff Christian and GATA's Adrian Douglas maintain in cordially hateful agreement, every ounce of gold in the fractional reserve banking system can support claims to 40, 50, or 100 ounces of gold, then, FOFOA suggests, the real price of gold is at least 40 times $1,200. Or at least that's the real price until those who suppose themselves to be depositors in the fractional-reserve gold banking system start taking delivery of their metal, start taking it out of the fractional-reserve system, initiating a great short squeeze, in which case there may not be enough zeroes to put behind the real price of an ounce of gold. FOFOA's new commentary is headlined "Relativity: What is Physical Gold REALLY Worth?" and you can find it at his Internet site here:
http://fofoa.blogspot.com/2010/08/relativity-what-is-physical-gold-reall...
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: www.SonaResources.com
Join GATA here:
New Orleans Investment Conference
Wednesday-Saturday, October 27-30, 2010
Hilton New Orleans Riverside Hotel
http://www.neworleansconference.com/redirect.php?page=index.html&source_...
* * *
Support GATA by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
http://www.gata.org/node/16
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:
http://www.prophecyresource.com/news_2010_may11.php
