The Whole Problem With The EP Zone In A Nutshell

How do you manage to explain an allochthon to the autochthonals?

BWAHHAHAHAHAHAHAH! I do kill me sometimes.

(translation: How do you explain a glacially-plucked deposit to the homie shareholders?)

Stockhouse posting discussing the EP Zone.

Weekly Long Bond Chart

From the results of the long bond trade this week, you would be fully expecting a major rally in the long bond price. The chart says otherwise. So a news-driven event is likely to set the direction, but it hasn't happened so far.

The important number to watch is the 140 strike price in the put options for the futures contract on the long bond. If you take the weekly long bond chart, you can see that its really not far off. With a few trading days remaining prior to options expiry, you have to be wondering.

GBN.V's fate depends very much on a decline in bond prices, and its looking like it will come right down to the wire. Still, there are major gap-ups to be filled on the downside. Anyone positioned for a rise in the long bond price into the new year will be check-mated for the end of the year should there be a sell-off.

"THE LONG BOND

The rush to 140 in August was strong enough to register an Upside Exhaustion on the Chartworks proprietary model. The action was the flight to long-dated "quality" on Euro concerns. The jump to 147 in mid-September was on the new promotion of the old "Operation Twist" from the 1960s.

The long bond can decline in price into the new year. This could be interrupted by year-end portfolio adjustments."

Bob Hoye - Safe Haven

supersize: http://www.flickr.com/photos/11747277@N07/6482018071/sizes/l/in/photostream/

stockcharts.com

There are funds by the way, listed on Canadian exchanges that trade in long bonds. As you can see, the following fund peaked on the same day when GBN.V saw a nominal price low:

http://www.bloomberg.com/quote/RYLCDBIX:CN

Long-term benchmark bond yields saw a new low this week, though this was not reflected in the GBN.V share price.

Government of Canada benchmark bond yields - long-term

source: Bank Of Canada

Province Of Ontario - 1935

The following file is an historical document that comes from the Province Of Ontario year end Minister Of Mines and Metallurgy report. This is a lengthy document with a mishmash of stockmarket values and financial reports, but no geological information.

Still, this makes an excellent comparative document that you might look at, with some of the mines in operation in the era. The salient detail is that after confiscation, the gold price was considered to be $20.67/oz. U.S. But you notice that some of the operations in question aggressively marketed their gold and were obtaining $30/oz+, and this was prior to the devaluation.

Once the devaluation occurred, mines that were in penury and making a questionable investment were suddenly overwhelmed with free cash flow and paying dividends.

Geology Ontario