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Establishment economist Sinai: Fed's code means 'buy gold'
Sinai Says Fed's Sept. 21 Statement Means 'Gotta Buy Gold'
From Bloomberg News
Wednesday, September 22, 2010
http://www.bloomberg.com/news/2010-09-22/fed-s-statement-on-inflation-me...
NEW YORK -- The Federal Reserve's statement yesterday that inflation is below levels consistent with the central bank's mandate for price stability means it's time to buy gold, said Allen Sinai, chief global economist at Decision Economics Inc. in New York.
"That's code for 'we don't want to go the way of Japan so we're going to print money,'" Sinai said in a radio interview today on "Bloomberg Surveillance" with Tom Keene. "You gotta buy gold when those two central banks are doing what they're doing."
Gold for December delivery was 1.6 percent higher at $1,294.2 an ounce at 8:11 a.m. on the Comex in New York, after touching an all-time high $1,296.50. Bullion for immediate delivery rose 0.4 percent to $1,292.60 an ounce in London, after earlier today rising to a record $1,295.
The Fed's Open Market Committee said yesterday it was "prepared to provide additional accommodation if needed" to support the recovery and boost inflation. Gold, which often moves counter to the dollar, has advanced 17 percent this year and is heading for its tenth consecutive annual gain.
Sinai said he forecasts a $1,500 price for gold. "Inflation-adjusted, it's still cheap, as odd as it sounds," he said.
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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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
