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Jim Rickards puts on GATA's tin-foil hat at King World News
9a ET Tuesday, September 7, 2010
Dear Friend of GATA and Gold:
In a fascinating essay written exclusively for King World News, Omnis Inc.'s senior vice president for market intelligence, Jim Rickards, says Treasury bonds are the new opium in the West's trade war with China. Perhaps more interesting for GATA supporters, Rickards goes on to concur more explicitly than ever with GATA on gold market manipulation. He writes:
"But there is another way to rebalance the world economy. Simply return the dollar to the gold standard and let the Chinese trade their maturing Treasury obligations for U.S. gold, if they wish, as was done under the Bretton Woods system. Critics will quickly point out that this would represent a bargain-basement sale of America's most valuable financial asset, and they would be right. But this is not because the idea is flawed but because the price of gold is kept artificially low by central banks operating through their fiscal agents at the Bank for International Settlements and the London Bullion Market Association. So let's do a thought experiment on what the market-clearing price of gold should be given global trade imbalances."
Rickards goes on to explain why the market-clearing price of gold is probably close to $40,000 per ounce.
Rickards may be the best-informed market analyst around, so GATA is especially thrilled to see him wearing one of our tin-foil hats.
His essay is headlined "Treasury Bills: The New Opium" and you can find it at King World News here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/7_Jim...
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 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
