Options Expiry This Week

Here is the options expiry Calendar for September, its this week.

http://www.optionsclearing.com/publications/xcal/xcal.jsp

The options on the silver contract must be paying off, as the silver/gold ratio is heading into very overbought territory, while gold is backing off a bit.

Interesting to follow the silver/gold ratio in comparison with GBN.V and the S&P Global Gold Index:

You can see the odd circumstances of GBN.V shares lately as compared to the silver/gold ratio via the longterm logarithmic chart. If you have a membership to stockcharts.com, you can view it supersize:

Silver/Gold vs. GBN.V Longerm Logarithmic Chart

Daily Chart

I am expecting an equity correction soon, along with commodities, this may mean a short term interim bottom for GBN.V shares, if we haven't already seen a bottom just yet. Certainly technical indicators for GBN.V shares on the daily chart says we are seeing a bottom, but the exact numbers remain to be seen. The inverse head & shoulders seems a lengthy process in formation. The risk here is that the downward momentum can get very serious regardless of the gold price and we'll see a double bottom:

Third Time Not A Charm, But A Rut

In reviewing the company float against the MD& A, it seems incredible that in only the last two years it has managed to double, and yet we are not much further along than we were when Birch Crossing was discovered with a wildcat hole.

Missed targets seem all too common at this point, where RKN was missed, they drilled in the wrong direction on the Mill Zone, and now only "just missed" the newly found gold mineralizing system.

Birch Crossing remains on the backburner, and no growth in any of the known deposits, with the exception of Bingo.

I'm fairly certain that financing will be arrived at in some way, though we don't know exactly when. They will also not be able to limit any knowledge of the Bingo deposit, because it will presumably have material impact on the share price.

Normally very little share price activity occurs during the fall, even though results come out from work on Bingo at this time, which is their best prospect.

F6