Copper Longterm

The rule of thumb that gold outperforms all commodities in a deflation has yet to take hold, and it basically has held true since the Nasdaq crash, but over time gold has yet to overtake the entire commodities complex.

Gold has merely been adjusting for inflation all the while, since vast accumulations of capital in the banking sector is going into all commodities. The banks obviously favour commodities over precious metals, as they are invariably short gold and gold miners through whatever possible financial risk vehicle is available. (GBN.V is a very good example of this)

Basically the trade is as it was prior to the crash in 2008, that the long commodities, short gold trade is in vogue. What will follow is the worst market hangover ever seen.

So how does that look overall, the copper rally?

supersize: http://www.flickr.com/photos/11747277@N07/5439610172/sizes/l/in/photostream/

stockcharts.com

In elliot wave terms, the copper complex should actually be working on a terminal 5-wave, since the correction was very deep, well beyond limits. (same with all markets with the same deep corrective phase and rally on QEII)

Adam Hamilton's comments on copper:

http://www.safehaven.com/article/19961/copper-correction-2

Weekly Analogous Chart

One of the most frustrating aspects to the markets is the lack of advance of the gold price in the last few weeks. While commodities are carving out limit up days, gold seems to be holding back. Whenever this occurs, the outcome is that gold is preparing for some larger event down the road. The gold price has actually come off its lows at the 34-week EMA.

Any correction of the gold price should eventually turn out to be well within limits as they are now. I can't say the same for something like oil, or soft commodities, as they could be well within the glacial outreaches of their iced-over peaks.

I would say that the monthly chart in gold is indicating the infancy of an extended 3-wave rally in prices in elliot wave terms, but for the moment, the weekly chart is carving out its own toehold strongpoint at the foot of the merciless crags of the rocky north face.

supersize: http://www.flickr.com/photos/11747277@N07/5439672480/sizes/l/in/photostream/

stockcharts.com

The 1980's Was Bad, Blow-Dried Hair For The La Ronge Gold Belt

The 1980's saw renewed interest in the mill zone, which has some of the highest grade gold deposits in Canada, if not the world. You can test this notion by comparing every last known deposit everywhere and see if this is true or not.

The gold price had a habit of collapsing below operational and developmental costs over and over, shutting down these mines.

The La Ronge gold belt has produced more than a million ounces since those bad hair days and yet even local people are labouring under the belief that there isn't any gold to be had in Saskatchewan. And the highest grade formerly mined prospects are 100% owned by Golden Band.

The companies like Starrex and Mahogany were, at one time market darlings boasting robust share prices, all because the story goes that they were the "next Hemlo."

Actually, if you ask me, the Roy Lloyd mine is the next Pickle Crow Lake mine, producing gold during a depression era. But all of the deposits on hand in La Ronge can be compared to any narrow vein gold porphyry deposit in Canada. You need merely have a look at the rocks from the high grade stockpile to confirm this notion.

The one overlooked deposit area in this play is the mill zone. This is the largest collection of partially mined high grade deposits in the world, all probably fed from the same source geologically speaking. I assume that this portion of the property will be developed to provide high grade feed for the upgraded mill.

The engineering plans for the mill call for multiple processing circuits, but no schematic is easily available. You would have to remember it from memory during one of the company presentations at the yearly shareholder meeting. There is one source of high grade mill feed at present, which is Roy Lloyd. The other source is the mill zone. The combined feed of varying grades out of the mines under development will probably wind up producing one doré bar, on average, per day.

While the company awaits a sign from god that the gold price will go higher and stay above operational and developmental costs, watching this stock market dog is an exercise in frustrating agony, with no ability to pull on your own suspenders while bragging what a great investment it is. (I just refer to it as 'lots of buying opportunities, but no selling opportunities.')

In fact, with the jeering in the press about hot chocolate ladles, watching this company is like a skit from Carol Burnett, where your investment is ominously going down in flames, while the fireman clearly needs help:

http://www.youtube.com/watch?v=i_AwOIs2buE

Star Phoenix

Leader-Post

Leader-Post

Leader-Post

Probably The Most Stupifyingly Corrupt Government Act Yet

http://www.safehaven.com/article/19962/insuring-your-pension-savings

Net Redemptions From GLD:

Forbes

-F6