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New York Post: Ben's gold touch -- 148% rise on QE

Section: Daily Dispatches

By John Aiden Byrne
New York Post
Sunday, October 14, 2012

Ben Bernanke's move in early July to begin a third round of quantitative easing, or so-called QE3, has done little for economic growth, according to latest figures, but it has benefited gold, silver, and oil trading by cheapening the dollar, analysts say.

"The dollar is selling off compared to gold because of the market's belief that the recent round of QE3 is going to cause a weaker dollar with investors bidding up gold prices," Mark Martiak, senior wealth strategist at New York-based Premier Financial Advisors, told The Post.

And it's not just gold. Since the Fed chief announced the latest round, unleashing $40 billion a month to purchase mortgage bonds, the greenback has depreciated 10 percent against the euro.

... Dispatch continues below ...


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:

Gold has risen 13 percent and silver has soared 26 percent while crude oil rose 9.5 percent.

And if you expand your time horizon out to when the Fed began its easing operation in November 2008, gold has risen 148 percent, or more than $1,000 an ounce, as the Fed has added over $1.9 trillion to its balance sheet.

"Essentially, gold is a hedge against central-bank fiscal policy and against inflation," Martiak said. "The market always disciplines politicians."

According to Martiak, "Gold is a noncorrelated asset class and an inflation hedge for investors. The International Monetary Fund's growth forecast is for slower growth, so while there was a dip [in gold prices], it had more to do with some market sentiment overall and not because investors are lacking confidence in gold as an asset class."

Martiak thinks the Fed's latest actions could support gold. He said that by historical standards, gold has been the biggest beneficiary of low real interest rates.

Gold bugs are not complaining. They see a rising asset class that could fatten portfolios hammered by poor returns elsewhere. Bernie Petit, a financial planner with Beacon Financial, sees renewed interest among his clients for the precious metal.

But he's not buying into it. "When people call me to buy gold, I try to dissuade them from buying," said Petit. "Some people mistakenly feel as though it is a safe investment, it is secure, and it is only going to go up -- and I believe all of those things are wrong."

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GoldMoney adds Toronto vaulting option

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