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Mike Kosares: The true inflation-adjusted price of gold
2:20p ET Saturday, June 19, 2010
Dear Friend of GATA and Gold:
It has been far too long since we've heard from Michael J. Kosares, proprietor of Centennial Precious Metals in Denver and host of its USAGold.com Internet site, but having recharged his batteries he has begun posting an occasional newsletter, "USAGold News, Commentary, and Analysis." The June edition begins with evidence that the dollar gold price has fallen so far behind the real rate of inflation that its inflation-adjusted price should be above $7,500. That gold has not kept pace with inflation and price increases in other tangibles in recent decades is generally acknowledged. To figure this out it is necessary only to contemplate central bank gold dishoarding, leasing, and the diversion of gold demand away from real metal and into futures contracts and similar derivatives. Kosares' letter is headlined "The TRUE Inflation-Adjusted Price of Gold" and you can find it at USAGold here:
http://traffic.libsyn.com/usagold/newsletter1006.pdf
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
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