Eric Sprott and Andrew Morris: Follow the money into silver

Section:

3:23p ET Friday, April 22, 2011

Dear Friend of GATA and Gold (and Silver):

Eric Sprott and Andrew Morris make the case for silver in Sprott Asset Management's latest essay, titled "Follow the Money." Sprott and Morris conclude:

"What the so-called silver experts neglect to account for in their models and projections is that the fiat money experiment has failed. And in this context, we believe the Market has assigned world reserve currency status to gold -- not USD, not EUR, and not JPY. In our opinion, gold's continued appreciation vis-a-vis every currency is assured because the great flight from fiat has only just begun.

"Like gold, silver also has a long monetary history, and, as such, investors are now also buying silver as protection from the ravages of fiat currency debasement. Yet when compared to gold, it is silver that offers the most attractive value proposition by virtue of the gross mispricing of its scarcity, which, we might add, has existed for many years.

"Thus, in our opinion, as this new bimetallic standard takes root, silver investors will continue to be justly rewarded with marked outperformance. We truly believe that this is the investment opportunity of a lifetime, and, increasingly so, others are taking heed. What is clear to us is that with equal investment dollars now flowing into silver and gold, the current 35-to-1 ratio is unsustainable and has only one direction to go: lower."

Of course Sprott Asset Management, long so heavily invested in silver, is only talking its own book. But what a book, what with the Sprott Physical Silver Trust being up 120 percent since its first issuance last October:

http://www.sprott.com/Docs/MarketsataGlance/2011/0311%20Follow%20the%20M...

Indeed, more than any other factor, the Sprott silver fund's huge challenge to the fraud of paper silver seems to have been responsible for the fraud's sudden failure.

You can find "Follow the Money" at the Sprott Internet site here:

http://www.sprott.com/Docs/MarketsataGlance/2011/0311%20Follow%20the%20M...

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



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Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon

Company Press Release, January 18, 2011

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.

PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.

Following the transaction:

-- Prophecy will own approximately 90 percent of PCNC.

-- PCNC will consolidate its share capital on a 10 old for one new basis.

-- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.

-- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.

Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.

For the complete announcement, please visit:

http://prophecyresource.com/news_2011_jan18.php



Join GATA here:

An Evening with Bill Murphy and James Turk
Sponsored by Deutsche Edelmetall-Gesellschaft
Friday, April 29, 2011
Hofbrauhaus, Munich, Germany

http://www.goldmoney.com/munich-2011-april-29.html

World Resource Investment Conference
Sunday-Monday, June 5-6, 2011
Vancouver Convention Centre East
Vancouver, British Columbia, Canada

http://cambridgehouse.com/conference-details/world-resource-investment-c...

Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England

http://www.gata.org/goldrush2011-london

Support GATA by purchasing gold and silver commemorative coins:

https://www.amsterdamgold.eu/gata/index.asp?BiD=12

Or 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/

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



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The Gold Standard Now: It Can Work

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