$Gold Monthly

You wouldn't be able to sort out a technical condition for the gold price from shorter term charts, so you would have to resort to the long term chart.

The bottom has been called in gold so many times recently, yet people have forgotten that gold prices bottomed in December, 2011.

There's a certain technical condition that has strong analogous points with the previous correction in gold. The sell-off on Wednesday has also confirmed a test of the lower channel resistance. This would be entirely arbitrary if it had not also tested the bottom of a lengthening pennant that has yet to break out on the upside.

The red and green lines are now touching in the Wilder's ADX directional movement. This has only happened twice during the period of the gold bull market. At the very beginning of the bull market, and the recent correction in 2009.

The start of the next upleg in gold should be within this month or next, as has happened previously. Interest rates to watch are the 3-month treasury bill rate should markets decline.

One thing that depositors in Cypress might have had happen to them is their gold was confiscated if it was on deposit and sold into the markets. Larger players would undoubtedly have been holding gold, though I would think it was unnecessary if they were being paid 6% interest on their deposits.

Or, in order to transfer their funds out of Cypress, they sold their assets including gold.

http://scharts.co/VSzZl0

$GBN.V Daily

I think people are truly underestimating what the onset of a gold price rally might mean for gold mining shares.

With a massive rally in bond market, which hadn't been seen in months, GBN.V shares were actually trading up.

You might assume because of the absolutely chronically oversold condition that GBN.V shares have, by now, have taken the brunt of the trade where you sell the miner and buy treasuries.

What I find irksome, besides the chore of determining the bottom and filling up my requirement, is the rank disinformation that the quarterly reports contain.

$3000/oz. cost? What do you think you're dealing with here? Children? This is outrageous.

In almost doubling my shares over the last few months, I have so much more voting power. And I intend to use my vote. As far as I'm concerned, there's only one board member left who's responsible for all of the bad business decisions over the last two years who aught to be stepping down, if only to spare himself the humilitation of being voted out by your own shareholders.

These quarterly reports have now gone 'Full retard.'

http://www.youtube.com/watch?v=7wVagQ_LVd4

Forbes

http://scharts.co/XWPLxs

$Copper/$Gold

During the first half of the bull market for precious metals, a strange paradigm emerged. That copper mines were somehow considered equivalent to gold, and that copper mines were fobbed off on the investment public as gold mines.

There is something very wrong with this idea. Firstly, your earnings in copper would have deteriorated drastically against gold. If only to say you had the largest mine on earth would you enter into investing heavily in copper deposits for the benefit of extracting gold as a by-product.

But its been years that anyone would even look at the idea that copper prices were not meant to behave as a store of value, simply because copper along with oil have been hoarded in huge volumes.

Gold mines that were not high sulfidation copper porphyry deposits were given the boot. The Canadian investment community is almost entirely focussed on oil sands plays.

And here we have the La Ronge Gold belt, containing billions of dollars worth of gold, and GBN.V is trading @~$11m. market cap.

http://scharts.co/XWUyz4

Calgary Herald

"Highest grade gold ever found in the La Ronge gold belt"

Higher grades were found in the Memorial deposit years ago, but also the ore pipes in the Komis deposit contain intervals in the area of 9% gold, almost double the amount quoted in the Calgary Herald. Refer to the Dec. 14 news release regarding the Komis deposit.

http://www.calgaryherald.com/business/gold+regains+glitter+province/8052129/story.html

Financial Post

If anyone should be the biggest players on the long side, or in futures markets in gold, it should be Canadian banks. Banks used to store bullion at one time, they should be doing so now.

I would say that in attempting to defend themselves against criticism that they will dip into their depositor funds, that they should instead be looking for ways to bolster their capital ratios.

One way is storing bullion.

Financial Post