Chris Waltzek: Gibson's gold law

Section:

10:05p ET Thursday, November 29, 2012

Dear Friend of GATA and Gold:

GoldSeek Radio's Chris Waltzek tonight hauls out one of GATA's foundation stones, the discovery 90 years ago by the British economist Alfred Herbert Gibson that the gold price ordinarily is inversely correlated with the real rate of interest -- that is, the rate of interest minus the rate of inflation. As economics professor at Harvard in 1988, future U.S. Treasury Secretary Lawrence Summers and his colleague at the University of Michigan, Robert Barsky, wrote an academic study analyzing Gibson's discovery and implicitly rationalizing the Western central bank gold price suppression scheme:

http://www.gata.org/node/1373

Using the inflation calculations of Shadowstats proprietor John Williams, Waltzek figures that "Gibson's Gold Law" can be used to predict the gold price, and that if real interest rates remain even slightly negative, gold should reach $5,500 per ounce in five years.

Of course such a prediction may presume that governments obey Gibson's law, which has never been GATA's presumption any more than John Williams has presumed that he could believe the U.S. government's Consumer Price Index. But all this is an excellent reminder that negative interest rates are supportive for gold.

Waltzek's commentary is headlined "Gibson's Gold Law" and it's posted at GoldSeek Radio here:

http://radio.goldseek.com/gibsonsgoldlaw.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet
at Wellgreen Project in Yukon Territory: 5.36 g/t

Company Press Release
Tuesday, September 11, 2012

VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel.

The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace.

Prophecy Chairman John Lee commented: “Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly.”

Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs.

For the complete company statement with full tabulation of the drilling results, please visit:

http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results....



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