The Gold/Silver Ratio Chart

The gold/silver ratio chart is where you can see the performance of GBN.V shares against the gold/silver ratio. If you invert gold/silver for silver/gold, you can see the match with the ratio up to a certain point.

If there is to be any differentiation with markets its very certain that GBN.V will disconnect with the Venture exchange. As gold increases against silver, so gold will also increase against commodities. So far, this has not occurred.

The 89-week EMA on the gold/silver ratio chart is about 50. With silver prices hovering around ~$40/oz. U.S., will imply a ~$2000/oz. U.S. gold price. But since the silver price can change drastically against the gold price the implied gold price at the 89-week EMA would be lower. The best guess is probably ~$1880/oz. U.S., as its the first stop of resistance above the breakout as noted in an April 2010 newsletter: files.me.com/fransix/k95iib

The gold price today is trading at twice the amount you would need to throw "everything and the kitchen sink" at the La Ronge Gold Project and have the same amount left over. Just depends on where the average price winds up.

For the most part, markets no longer trust the gold miners, because of the rush to dilute the shares and penalize shareholders. The recent insider buy could be perceived that the company fully intends to further dilute the shares.

supersize: http://www.flickr.com/photos/11747277@N07/6025801761/sizes/l/in/photostream/

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-F6