$IRX Monthly

It's become an object of fascination to watch interest rate declines the whole while that stock market advances are cheered along. How important are interest rates rising to stock markets?

All you need to look at is the $IRX Monthly. The top was in in 2007, the say, but in reality using CPI, the top was in 2000. We have been in a generational bear market since then, but gold miners are acting as if it were still the 1990's, the salad days.

Small wonder then, that they're struggling with unusually serious management problems all around. Nobody has a clue about what they're doing. In an equity decline, stock prices decline. That means if you are diluting your shareholders at the fastest pace possible for less and less real returns, you equity returns will suffer.

Gold miners have been engaged in swindling their shareholders blind without a second thought to what they were doing. What they should have taken into account is an assumed 9% inflation per year, which nobody even half-heartedly believes exists. Take CPI very seriously, it's "only" 3%, and if you can, take a HARD LOOK at shadowstats.

http://scharts.co/Z8Okx7

Gold Lease Rates

So how do you know that gold prices have hit bottom? All you really need to do is look at lease rates. They are presently in the positive, meaning there's no physical gold available to lease any longer, and lease rates are threatening to rise above 3-month treasury bill rates.

Treasury bill rates could very possibly decline BELOW lease rates, but that hasn't happened just yet. If equities decline, taking gold miners with them(we're in a bear market with declining interest rates, remember?) that would drive short term interest rates below zero, at a time when gold lease rates are above zero.

The minimum would be that gold prices aught to be well supported here:

-F6