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Egon von Greyerz: Gold entering a virtuous circle
10:10a ET Monday, September 6, 2010
Dear Friend of GATA and Gold (and Silver):
With his new commentary, "Gold Entering a Virtuous Circle," Egon von Greyerz, founder and managing partner of Matterhorn Asset Management in Zurich, updates the case for the precious metal and says he considers $6,000, $7,000, and $10,000 to be realistic price targets. Von Greyerz writes:
"Gold and gold mining shares were an average of around 25 percent of world financial asset between 1921 and 1981. Today gold and mining shares are only 0.9 percent of world financial assets. If gold and mining shares were to go to 25 percent of financial assets, gold would go to over $31,000."
Wild as that may seem, one could argue that von Greyerz is being conservative. For during the 1921-1981 period he cites, gold investments were indeed largely gold investments -- real metal -- while since then much if not most investment in gold has been diverted by derivatives to mere paper claims on metal that increasingly hasn't existed at all as Western central banks and their bullion-bank agents developed the system of fractional-reserve gold banking to suppress gold's price and support government currencies and bonds amid a vast expansion of the world's money supply.
What would the price of gold be if investors suddenly discovered that most of what had been thought to be the supply was only imaginary, a government-inspired fraud that made Bernie Madoff and Charles Ponzi look like great humanitarians? It probably would be a price high enough to get von Greyerz a date with Maria Bartiromo on CNBC to explain how the establishment financial news media got it so wrong.
You can find von Greyerz's commentary at the Gold Switzerland Internet site here:
http://goldswitzerland.com/index.php/gold-entering-a-virtuous-circle-ego...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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
Join GATA here:
Toronto Resource Investment Conference
Saturday-Sunday, September 25-26, 2010
Metro Toronto Convention Center, Toronto, Ontario, Canada
http://www.cambridgeconferences.com/index.php/toronto-resource-investmen...
The Silver Summit
Thursday-Friday, October 21-22, 2010
Davenport Hotel, Spokane, Washington
http://www.silversummit.com/
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_...
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Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
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Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:
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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: www.SonaResources.com
