Murray Pollitt: When it comes to gold, The Economist and FT are like Pravda


1:50p ET Wednesday, August 11, 2010

Dear Friend of GATA and Gold:

Murray H. Pollitt, president of Toronto investment house Pollitt & Co., reflects in his market letter this week on the party line long taken against gold by The Economist magazine and the Financial Times, which have been disparaging gold throughout its tripling in price over the last decade.

Pollitt writes: "Much as Pravda was driven by the views of Uncle Joe Stalin, so the Economist/FT appears, when it comes to gold, to be driven by the views of Western financial policymakers."

He adds: "The Economist gently ridicules the 'wonder' that humanity has 'too often' reserved for gold. Should this 'wonder' instead be reserved for the dollar? Or should The Economist note the wonder of the dollar and Sterling, both of which have lost 99 percent of their purchasing power in the last century, still being reserve currencies?"

In May 2009 a GATA delegation spent considerable time in London with writers from The Economist and the FT. The writer for The Economist couldn't get rid of the subject of gold price suppression fast enough. The writer for the FT feigned interest but still has never dealt with the subject in print. Pollitt's commentary may explain why. It's titled "Pravda" and he has generously consented to GATA's sharing it with you here:

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 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:

PollittMarketLetter-08-09-2010.pdf103.31 KB