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Alex Cowie: Why gold is trending toward $27,163

Section: Daily Dispatches

2a ET Monday, June 28, 2010

Dear Friend of GATA and Gold:

Adapting methodology often suggested by proprietor and gold mining executive Jim Sinclair, Alex Cowie of the Diggers and Drillers letter argues that the target price for gold is more than US$27,000, which he figures is the valuation needed to offset global public debt with central bank gold reserves. Of course Cowie seems to assume that reported reserves are actual reserves and that gold leasing has not caused central banks to do anything duplicitous with their reserve accounting -- a careless assumption but one he may be forgiven in favor of his larger point. Cowie's analysis is headlined "Why Gold is Trending Toward US$27,163" and you can find it at Money Morning Australia here:

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:

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Hilton New Orleans Riverside Hotel

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