$USB Monthly

The one chart to really be mindful about is the $USB Monthly chart, because it will give you the aggregate of monthly closes on the strongly inversely correlated GBN.V stock price.

Especially considering that calls for interim interest rate rises have increased. (I doubt this is likely to occur, the outcome will be very likely long term low interest rates.) Almost the whole TIPS yield curve is nominal negative, including the 30-year. This is bound to spill over into treasury bills proper.

An interim rate rise will benefit GBN.V stockprices, as they are first sold by brokerages into the markets without owning any and then the money raised is parried into treasury futures. The resulting deficit of shares is called an equity swap. (Bloomberg was reporting a negative number until key statistics was cut off.)

So if treasury prices decline here, or that interest rates rise, then GBN.V stands to benefit as brokerages are forced to sell their leveraged positions and settle exposure to the swap. An interim rate rise will probably not affect gold prices, as short term rates are becoming unstable once again and treasury bills can easily rate negative nominal rates.

All of the shares not held by insiders are have basically been sold short, and the accumulated proportion of shares sold in this manner equals the shares held by small investors.

imo, enough has been done to beat down the shareholders who refuse to budge on their investment, so anything that has been planned for December will likely present another buying opportunity.

I mean, just how stupid cheap do you want the shares to be anyway?

supersize:

http://www.flickr.com/photos/11747277@N07/8258093617/sizes/l/in/photostream/

http://scharts.co/YRwPBp

Video Of Interest:

Anybody investing in the gold sector aught to take in the following video. The Central Bank Of Canada is remiss in holding U.S. dollars or Euros in foreign exchange reserves, rather than gold. What if the dollar is eventually devalued against gold, or any other currency for that matter?

The professor's video is very timely:

http://www.youtube.com/watch?v=CTtf5s2HFkA&sns=em

via Gold Eagle.com - It's Hard Making Money In A Bull Market

"So be aware; during lulls in a bull market, idle hands and a high-speed Internet connection are Mr Bear's tools as he inspires anxiety and doubt in the hearts of investors. In trying times like these, if you believe now is the time to get out and stay out, the best thing to do is just go on with your life and forget following the markets on a daily basis, as I expect this bull market in precious metals will prove to be the most profitable bull market in our lifetime."

This is more than just a lull for GBN.V investors, but how many more times does the stock need to be rated downwards before it no longer causes major frustration?

http://www.gold-eagle.com/editorials_12/lundeen120512.html

via MineWeb - Golden Bullshine

This article looks as if it had been through some of the same calculations I have, so I think it makes interesting reading in the context of GBN.V. Especially since GBN.V is a shell company of little value and is essentially two projects, one to fool would-be buyers and basically satisfy the regulatory requirement, and one to develop the property as if it were a privately owned company.

One thing I would add is that taxes are only applied to ~35% of earnings. This does not apply to any development CAPEX or operating costs.

http://www.mineweb.com/mineweb/content/en//page103855?oid=164772&sn=Detail

-F6