The Longterm Daily Chart

The longterm daily chart shows where several key resistances in an inverse head and shoulders breakout were the most likely candidates to generate upside targets.

The target achieved was in December, 2010, which means that the neckline in red was the most likely departure point for measuring the target. Both the linear scale long term charts and log scale long term charts have the same resistances and confirm the structure of the elliot wave formation.

supersize: http://www.flickr.com/photos/11747277@N07/5853014659/sizes/l/in/photostream/

stockcharts.com

Backwardation In Gold Prices

Backwardation in gold prices may be a given with the implementation of the Dodd Frank act in the U.S., applying to all futures trading in commodities price contracts without any actual backing.

http://www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15

The attempt with the Dodd Frank act is to coax gold bullion out of hiding in order that traders sell at the spot price and buy the futures contract. But the likely event is that bullion will remain firmly placed in its vault as people no longer trust the bankers that run the futures exchanges.

But the unintended consequence is that gold will just have been 're-monetized.'

The effect of the Dodd Frank act is apparent in the futures chain:

http://finance.yahoo.com/q/fc?s=GCM11.CMX

Fekete had been debating a possible backwardation in gold prices since 2008:

http://www.safehaven.com/author/8/antal-e-fekete

Normally backwardation in commodities means that the peak prices are in and that spot prices set the limit. But not necessarily in gold. Gold can reach ~$2000/oz. very easily should this assumption be correct.

Smaller traders are being directly affected, meaning they are no longer permitted to enter into futures contracts for gold unless they intend to take delivery and must liquidate their contracts by July 15. But they may also just get mad and demand delivery.

Taking a step back on this situation, you are seeing history rhyme. Gold, though its not necessarily being confiscated, is becoming out of reach except only for the biggest players who intend to take delivery.

Conclusion: What will happen is anybody's guess, though I would say that smaller traders will be looking at undervalued gold producers as a good way to bet on a proxy for gold, now that price speculation in gold futures contracts has been shut down.

Jolu Mine

The Jolu mine and its various vein structures are still in the process of geological testing, with the latest results being that yes, the geology is the same as Roy Lloyd and other known greenstone belt narrow vein mines in the Canada.

Along with available information on the Saskatchewan Energy and Resources on the Mallard Lake zones, some of the missing details can be added to the results. You can use 'Mallard Lake' or the NTS number 74-A-01

What is required is infill drilling.

http://www.goldenbandresources.com/html/news/press_releases/index.cfm?ReportID=203149

The Inauspicious Pi-Cycle Date

The pi-cycle date of June 13/14 may be referring to a low specifically in the gold mining shares. Armstrong made his prediction about a low in June for bullion, but in actual matter of fact bullion had a low weeks ago.

The trouble with the pi-cycle date is that it may be referring to just about anything.

Armstrong's story is here:

http://www.moneyweek.com/investment-advice/how-to-invest/the-strange-case-of-the-jailed-market-genius

The Gold Miners Gulag

http://www.321gold.com/editorials/thomson_s/thomson_s_060711.html

-F6