GLD Weekly

There is a small gap on the weekly gold chart which can easily be missed which is much clearer on the GLD weekly. The rumour of margin hikes on Friday produced a sell-off which has now closed the gap and tested the 13-week EMA.

The lowest gold prices can plunge is to the 34-week EMA. The sell-off comes a day after a global stock market rout, making the obvious nauseating. Any sale of quantities of gold into the markets has the effect of liquifying a very illiquid market.

When central bank sales of gold at the bottom of price corrections in gold were thought to presumably suppress the gold price, prices invariably rose. Very likely GLD will be selling gold into the markets on this price decline, providing liquidity for a new upleg.

It begs the question where every last politician, banking gnome, economist, news announcer vehemently argue economic stability and low inflation when we are moving into a very volatile price change helped by margin hikes to stave off advancing prices.

supersize: http://www.flickr.com/photos/11747277@N07/6177735386/sizes/l/in/photostream/

stockcharts.com

Gold/Siver Ratio

One thing you can be absolutely certain of during the change in the gold/silver ratio is that the more prominent stocks in the mining space which garnered all the attention are now attracting the attention of short sellers.

Those silver and gold stocks that relied almost exclusively on the price appreciation of their stock to pay for everything, including paying out dividends and revenue in case of short falls in grade claiming below zero costs, or perhaps advertising deposits with the greatest widths and the lowest grades requiring the largest infrastructure investment are now facing a public hanging.

The complete absence of an economic model except for stock price appreciation in the mining space is going to get people's attention.

supersize: http://www.flickr.com/photos/11747277@N07/6177768854/sizes/l/in/photostream/

stockcharts.com

BNN.CA

John Ing

http://watch.bnn.ca/#clip536248

David Rosenberg

http://watch.bnn.ca/#clip536115

Frank Holmes

http://watch.bnn.ca/#clip537834

More EP Zone

Why would a very sizeable chunk of material wind up ~1km from its origin? The likelihood of something like this happening would be very remote, but since there's no source for the EP Zone where it was found, you have to look up-ice(north) to find any answers.

There must have been multiple waves of advances and recessions in the onset of the ice age, which could have pushed the EP Zone into its place and then provided a glacial till cover after it was moved. That large depositions of boulders are left behind by glaciers is called: 'Plucking.'

source: http://en.wikipedia.org/wiki/Glacial_landform

"Such erratic megablocks greater than 1 square kilometre (250 acres) in area and 30 metres (98 ft) in thickness can be found on the Canadian prairies, Poland, England, Denmark and Sweden. One erratic megablock located in Saskatchewan is 30 by 38 kilometres (19 × 24 mi) (and up to 100 metres / 330 feet thick). "

http://en.wikipedia.org/wiki/Glacial_erratic

There is a technical report of the EP Zone, which was filed under SEDAR issued May 8, 2007.

-F6