Welcome To The Golden Band Resources HUB On AGORACOM
Saskatchewan's SECRET Gold Mining Development.
Message: Charts & Comments
Weekly Analogous Chart
The Weekly Gold Analogous Chart is probably the best perspective going forward, in terms of numbers of weeks, but not necessarily prices.
What this chart says, is that we should expect a consolidation period through November, with a certain trading range between the peak value this week and the 13-week EMA. Possibly the trading range will be in around $100/oz. U.S.
This chart is also a reminder that perhaps CPI calculations are obsolete at best, and that the only commodity to absorb the inflationary trend is gold, and that shadowstats.com may actually be correct, that gold's 40-year inflation-adjusted average should be ~$1673/oz. U.S.
Certainly various price levels on an inflation adjusted basis demonstrate that there is more inflation in the system than recognized, but perhaps not hyperinflation. And that Gold is in a bull market, because it has been adjusting for inflation all of this time.
The outlook for gold going into the new year should be that once bullion prices exceed the 40-year inflation-adjusted average based on shadowstats, that this would make a good average to calculate the earnings of GBN.V La Ronge Gold Project. Going into 2011, we should see this level tested, and that this level will perhaps be the average price for at least one year from March 2011 - March 2012.
To give you an idea of how well situated shareholders of GBN.V shares might be, @~$1350/oz. U.S., the company can pay out 1¢ per share per month in dividends, based on 100k oz. per year. The company principals, CEO, V.P.s, directors, and insiders can forgo their salaries in favour of dividends paid out by the company with absolutely no impairment to the organic growth of the company nor shareholder value.
Rick Ackerman says ~$1380 for an interim peak value, but we may have already seen it. Yields on the discount rate may not yet have seen their bottom, so this might put some upward pressure on gold price yet:
http://www.rickackerman.com/2010/10/a-hair-trigger-alert-for-bullion-watchers/
supersize: http://www.flickr.com/photos/11747277@N07/5060251726/sizes/l/in/photostream/
James Turk
James Turk confronts doubting thomases in the media. Pessimists, you had better listen.
http://www.cnbc.com/id/15840232?video=1608656320&play=1
Negative Yields Mean Deflation
Elephant in the room: Treasury bond yields reach record low.
By Stefan Karlsson, Guest blogger / October 1, 2010
The demand for U.S. Treasuries because of their perceived safe haven status keeps pushing down the yields to increasingly ridiculous levels. The yield on 10-year inflation protected Treasury securities has dropped to a record low 0.67% today (as always, this number may have gone down or up by a few basis points when you read this), compared to about 1.5% in the beginning of the year and about 2% in the beginning of 2009 when nominal yields last reached the lows that we have seen today.
The situation is even more extreme for the 5-year inflation protected Treasury security, where the yield is now -0.14%, that's right a negative number. This is also a dramatic drop from about 0.5% in the beginning of 2010 and about 2.1% in the beginning of 2009.
(Note: If you will remember, Goldman Sachs came up with a chart based on the inverted yield of the 10-year TIPS vs. the gold price and projected that gold prices had lagged behind the decline in yields and would catch up. This is what we are seeing now. As you can see, deflation does not necessarily mean a decline in gold prices. Very likely a major onset of deflation will restrict the rise of gold prices until more Quantitative Easing is implemented rather than cause a decline.
However, you may see a decline in currency values and simultaneous decline in commodities.)
BNN.CA
Rob McEwan and Tom Meredith discuss shareholder deals, the reasons for outlining as much reserves as possible, the gold market. Note that GBN.V is operating differently by not necessarily outlining as much reserves as possible, but only making sure they have enough to go on for mining and implementing production. I have to say I agree with the GBN.V strategy here, but what point is there in investing in this company unless shareholders are rewarded for holding all of the risk with dividends? I know it sound old-fashioned, but GBN.V are going about their development process much as miners had during the depression. Shareholders may be greatly relieved to find they are obtaining a yield.
Eagle Plains
Eagle Plains Resources comes up with a good intervals in the Yukon:
Bralorne
Bralorne says they will produce 100koz./yr. They have a new website, the video goes through all of the points, showing the mill, the development, the plans, everything a shareholder needs to know.
That means that they will produce through their 284tpd mill approx. 1oz. gold per tonne. The grade at Bingo with a mill roughly double the size is 15g/t, so they may be producing the same amount.
(Note: When they point at stuff on some of the engineering drawings, they use their shaft finger. I know that we are bearded men and rough miners and all, but for gods' sake, use some decorum. Don't point at stuff, use the open hand turned up, and if need be to point, a ruler, a laser, or a dynamite stick in desperation will suffice.)
Weekly GBN.V Chart
The weekly GBN.V Chart cleans up the noise, giving us a clear picture of where the resistances/supports are. Even if the gold price may trade sideways for a few weeks, lower yields guarantees support for the shareprice.
-F6
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