GoldMoney's James Turk interviews David Morgan on the new silver market

Submitted by cpowell on Fri, 2010-11-12 00:34. Section: Daily Dispatches
7:30p ET Thursday, November 11, 2010
Dear Friend of GATA and Gold (and Silver):
At the Edelmetallmesse precious metals conference in Munich last week, GoldMoney founder and GATA consultant James Turk interviewed Silver-Investor.com's David Morgan about the transformation of the silver market over the last year. The interview is about 18 minutes long and you can both watch it and read a transcript of it at the GoldMoney Internet site here:
http://goldmoney.com/morgan-turk-silver.html
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.
"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit:
http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf

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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:
http://www.goldrush21.com/
* * *
Help keep GATA going
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http://www.gata.org/node/16

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ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.
Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia."
The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.
For the complete press release, please visit:
http://prophecyresource.com/news_2010_nov11.php

Law firm Girard Gibbs wants to join silver manipulation class action pig pile

Company Press Release via Business Wire
Thursday, November 11, 2010
Girard Gibbs LLP Investigates J.P. Morgan, HSBC for Violations of Antitrust Laws in Silver Futures Trading
Lawsuits Allege that the Banks Manipulated Prices of Silver on the COMEX Exchange
http://www.businesswire.com/news/home/20101111006211/en/Girard-Gibbs-LLP...
SAN FRANCISCO -- Girard Gibbs LLP (www.GirardGibbs.com) is investigating allegations that J.P. Morgan Chase & Co. and HSBC violated federal laws by conspiring to lower the price of silver futures and options contracts. The banks are accused of accumulating heavily concentrated positions in silver futures and options on the Commodity Exchange Inc. (COMEX), beginning in early 2008.
Lawsuits have been filed against HSBC and J.P. Morgan Chase & Co, alleging that the banks manipulated the prices of COMEX silver futures by building up large short positions in silver futures contracts they had no intent to fill, in order to force silver prices down at a time when silver should have been trading at higher levels.
... Dispatch continues below ...

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ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20.
Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia."
The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies.
For the complete press release, please visit:
http://prophecyresource.com/news_2010_nov11.php

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The banks' actions are being investigated by the U.S. Department of Justice as well as the U.S. Commodity Futures Trading Commission (CFTC). On October 26, 2010, CFTC Commissioner Bart Chilton issued a statement, saying: "[I] believe violations to the Commodity Exchange Act have taken place in silver markets and that any such violation of the law in this regard should be prosecuted."
If you bought or sold COMEX silver futures since March 1, 2008, Girard Gibbs is interested in speaking to you. If you wish to discuss our investigation or have any questions concerning your rights in this case, please contact attorney Elizabeth Pritzker (ecp@girardgibbs.com) at Girard Gibbs LLP or call us at 866-981-4800.
Girard Gibbs LLP, with offices in San Francisco and New York, is one of the nation's leading law firms in prosecuting class actions and other lawsuits on behalf of consumers and investors.

* * *
Support GATA by purchasing a colorful GATA T-shirt:
http://gata.org/tshirts
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:
http://www.goldrush21.com/
* * *
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:
http://www.gata.org
To contribute to GATA, please visit:

http://www.gata.org/node/16

---

ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit:
http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf

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The Spot Gold Price Today

THE SPOT GOLD PRICE

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GOLD PRICES DATA

RunToGold.com gold prices are provided by a data feed from GoldMoney.
The gold price is sometimes referred to as world gold price, New York gold price, London Metal Exchange gold price, spot gold price, market gold price and gold bullion price. These gold prices are indications of the current trading gold prices for one troy ounce of gold on world gold exchanges.
The gold price used in the gold price charts on Run To Gold are the 24 hour Spot Gold Bid Price which are discovered in New York, London, Hong Kong and Sydney. These gold prices are quoted in Federal Reserve Note dollars (FRN$). Throughout the world the gold prices are often displayed in currencies other than the FRN$ and are converted into the local currency.
Like all gold prices, the current gold price reflects the inherent value of gold and the relative strength of the underlying fiat currency. For example, the FRN$ price of gold may increase more in percentage terms than gold priced in Euros. The reason would be that the change in gold prices is a reflection of FRN$ weakness against the Euro and would not be the result of the change in the intrinsic value of gold based on the gold market fundamentals.
Run To Gold gold price charts are updated every 1 minute for both the live gold price charts and the moving averages. The 50 day and 200 day moving average gold prices are the sum of the average gold prices for the most recent 50 or 200 trading days.

CONCLUSION

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U.S. Boosts 2011 Oil Forecast on Economic Outlook

(Updates with closing price in fifth paragraph. Adds Ghanem comment in 19th paragraph.)

Oct. 13 (Bloomberg) -- The U.S. increased its crude-oil price forecast for 2011 by $1 a barrel on projections that global economic growth will lead to higher demand and that inventories in industrialized nations will decline.

West Texas Intermediate oil, the U.S. benchmark grade, will average $83 a barrel next year, up from a September forecast of $82, according to the Energy Department’s monthly Short-Term Energy Outlook. The estimate includes an assumption that OPEC will boost its output as prices rise, tempering a bigger gain.

Oil will climb 6.5 percent in 2011 from a projected average of $77.97 this year, the department said. The 2010 figure increased 60 cents from last month and reflects a 26 percent advance from the 2009 average of $61.66 a barrel. Crude has averaged $77.90 a barrel so far this year in New York.

“World oil prices are expected to rise gradually as global economic growth leads to higher global oil demand and growth in non-OPEC supply slows in 2011,” according to the forecast by the Energy Information Administration, the department’s statistical arm.

Oil for November delivery rose $1.34, or 1.6 percent, to settle at $83.01 a barrel on the New York Mercantile Exchange, the highest level in a week. Futures have gained 4.6 percent this year.

U.S. Economy

U.S. gross domestic product will grow 2.6 percent this year and 2.1 percent in 2011, down from projections of 2.8 percent and 2.3 percent a month ago, according to the report.

U.S. households will spend an average of $986 between October and March to heat their homes, an increase of $24, or 2.5 percent, from last winter, EIA projected today in its Winter Fuels Outlook.

The department raised its forecast for global oil consumption this year to 86.06 million barrels a day from 85.95 million last month. That’s up 2.1 percent from last year’s 84.33 million. Demand will climb to 87.44 million in 2011, 80,000 barrels a day higher than last month’s projection.

U.S. oil use will average 18.97 million barrels a day this year, up 200,000 barrels from 2009. This year’s forecast increased 40,000 barrels from the September estimate. Consumption will climb 110,000 barrels to 19.08 million in 2011, according to the report.

OPEC Output

The 12 members of the Organization of Petroleum Exporting Countries produced an average 29.49 million barrels a day in the third quarter, up 0.4 percent from the second quarter, the report showed.

The figure was 29.41 million barrels for September, down from a revised 29.55 million the month before. The August total was the highest monthly rate since December 2008, the month before the final round of OPEC production cuts went into effect. The Energy Department put August output at 29.46 million in last month’s report.

OPEC agreed to a record 4.2-million-barrel-a-day production cut in late 2008 as global demand fell 0.6 percent, the first decline since 1983. Members are now adhering to about 54 percent of that cut, according to an estimate today from the International Energy Agency.

OPEC production will “increase over the next year or two” in response to higher economic growth, EIA Administrator Richard Newell said today at a press conference in Washington. Higher OPEC output “should keep prices from rising dramatically.”

Production Targets

OPEC oil ministers signaled that they won’t alter their existing output targets when they meet tomorrow in Vienna.

The oil market is “well balanced,” Saudi Arabian Oil Minister Ali al-Naimi said Oct. 12 when he arrived in Vienna. He called prices between $70 and $80 a barrel “ideal.”

OPEC has raised output by 5 percent from a five-year low reached in March 2009 and now exceeds its own target by 1.9 million barrels a day, about the same amount as Angola produces. Production was 29.1 million barrels a day last month, based on Bloomberg News estimates.

“All the ministers agree that we should leave the level of production stable,” Rafael Ramirez, Venezuela’s energy and oil minister, said today in Vienna. “We’re hoping to maintain the price and to increase that a little bit to between $90 and $100 a barrel.”

Oil prices “could be significantly higher” from today’s forecast if OPEC doesn’t increase production as global consumption recovers, the EIA report said.

Libya’s top oil official said he would like to see an oil price of $100 a barrel by the end of the year. Shokri Ghanem, chairman of Libya’s National Oil Corp., also called on OPEC members to comply with the group’s quotas.

IEA Forecast

The IEA also increased its demand outlook today. It raised both its 2010 and 2011 forecasts for worldwide crude use by 300,000 barrels a day amid signs of “apparently resurgent” demand in the U.S., Germany and Japan in the last quarter.

Global crude consumption will average 86.9 million barrels a day in 2010 and 88.2 million barrels a day in 2011, the Paris- based energy advisory agency said in its monthly Oil Market Report.

OPEC yesterday raised its forecast for 2010 global oil demand by 100,000 barrels a day to 85.59 million. That compares with 84.46 million last year. It said demand will climb to 86.64 million barrels a day next year.

--With assistance from Simon Lomax in Washington, Fred Pals in Vienna and Fiona MacDonald in Kuwait. Editors: Joe Link, David Marino
To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net.
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

Oil slides to near $86 amid Europe, China jitters

BANGKOK – Oil prices tumbled to near $86 a barrel Friday in Asia as investors shifted from commodities to the dollar amid renewed fears about a debt crisis in Europe and slowing growth in China.
Benchmark oil for December delivery was down $1.59 to $86.22 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
The contract settled unchanged at $87.81 on Thursday after earlier hitting a two-year high on news that U.S. crude and gasoline stockpiles declined last week in a sign of improving demand for fuel.
Oil prices have climbed steadily in recent weeks because the dollar has weakened against other currencies. That's largely because of the Federal Reserve's decision to pour $600 billion into a bond-buying program to stimulate the U.S. economy.
But oil retreated Friday as the dollar gained against the euro, making the commodity more expensive for buyers holding that currency.
Also hitting sentiment was a plunge in Chinese stock markets on concerns Beijing will take more steps to cool economic growth after inflation hit a 25-month high in October. China is the world's largest energy consumer.
The euro was down about 0.3 percent to $1.3608, dented by mounting speculation that Ireland — one of Europe's most financially troubled countries — would not be able to cut public spending and may have to resort to a bailout. That revived fears of a wider European debt crisis.
In other Nymex trading in December contracts, heating oil fell 3 cents to $2.40 a gallon and gasoline was flat at $2.24 a gallon. Nautral gas dropped 2 cents to $3.91 per 1,000 cubic feet.
In London, Brent crude slid $1.36 to $87.74 a barrel on the ICE Futures exchange.

The U.S. No Longer Controls the Price of Oil in a Peak Oil World

Saturday, 20 March 2010 21:01

Back in the days when US oil demand controlled the price of oil, a massive recession in the United States would have sent oil to 12.00 dollars a barrel. That era, which ended last decade, was defined by ongoing spare capacity in OPEC, low-cost oil in Non-OPEC, and nascent demand for oil in the developing world. That was then, and this is now. And so it’s rather quaint that the energy analysts from that previous era still gather each week on American financial TV, to discuss the inventories at Cushing, Oklahoma. Inventories at Cushing, Oklahoma? The US has been removing discretionary demand for oil for years, starting back in 2004. And current unemployment in California is at 13.2%–another new post-war high. Yet oil is at 82.00 dollars? Get these analysts off TV. Please. We need analysis of diesel demand in Guangdong, and Uttar Pradesh. With the closing out of the decade we also have the full data set, on global crude oil production. As you can see from the chart below, the twin peaks of oil production in 2005 and 2008 reveal that while the world was able to respond to a moderate price advance coming out of 2002, nearly all of the price action above 40.00 dollars a barrel starting in late 2004 did not produce more supply. Welcome to peak oil: when the world’s remaining supply of oil is more diffuse, of lower grade, harder to extract, and is unable to flow in the aggregate at higher production levels. There is an extra measure of comedy today to our defunct and inward-looking group of oil analysts here in the States, as it was revealed that these weekly measures of US inventories are highly flawed. Well, actually, we knew that. But it’s always nice to get the proof. From tonight’s Wall Street Journal: …documents, obtained through a Freedom of Information Act request, expose several errors in the Energy Information Agency’s weekly oil report, including one in September that was large enough to cause a jump in oil prices, and a litany of problems with its data collection, including the use of ancient technology and out-of-date methodology, that make it nearly impossible for staff to detect errors…Internal emails and a report from a consulting firm prepared in September describe a process at the EIA that served the oil world well in 1983, the first year that oil futures traded, but hasn’t kept up as the inventory data have become more influential and the nation’s oil infrastructure has become more complex. The familiar names that you see on financial TV here in the US, talking about oil, are generally living in a past that no longer exists. One really has to go to London, Sydney, and Toronto to find not only the best minds in energy, but TV hosts smart and informed enough to even handle the conversation. Global oil production peaked in the 2005-2008 period and now trades at levels thought unthinkable in 2005 when unemployment levels in the OECD were half current levels, if not lower. The US no longer controls the geology or oil, or the price of oil. But, we carry on as though we will again in the future. After all, in places like California which is seeing a competitive race for the Governorship, phrases like Getting Back on Track are all the rage. By. Gregor MacDonald