GLD

One place to look for gold supply in the market during dishoarding are the ETFs. They are at least partially responsible for a significant source of supply, as has been pointed out repeatedly by Bloomberg over and over again. The source of supply most affecting the markets has been JP Morgan Securities, selling all of the gold on custodial accounts out of the COMEX warehouse.

It could very well be that co-ordinated selling is occurring across the 24-hour trading clock, starting on the TOCOM, and continuing through the LME during London trading hours. Selling has been relentless, but there is a dire backdrop, that there have been failures to deliver in 10Y treasuries. That means a dire bankruptcy is pending.

On the other side, you have physical buying in coin and bullion form leading to supply deficits and delays. One part of the market that is ignored are the futures through June and July, where futures contracts are declining along with supply sell-offs.

Call options are saying that contracts for June and July delivery are a worthwhile bet, while put option contracts are being bid up above certain levels. This will probably determine the price going forward. They even out around ~$1450 strike price, which is in the same zone as the fibonnaci retracement on the One-wave extension elliot wave model over the advance from $681, completing wave 4.

Below a 1200 strike price is beyond the level where puts are being bid up. The only technical aspect to validate the bull market is the elliot wave count, while more immediate technicals are completely washed out.

I would be expecting another monthly close above $1448/oz., while the rally is delayed, delayed, delayed again and again.

http://quotes.ino.com/options/?s=NYMEX_GC.M13.E

http://finance.yahoo.com/q/fc?s=GCK13.CMX

The GLD has gaps to fill going forward:

http://scharts.co/Yvxbgj

GBN.V Weekly

Certainly there has been monetary gains to be made by selling GBN.V shares, and buying treasuries, and this has been a long standing short sell based on hedging strategies that were written into regulatory requirements since two years now.

The company has also been in a drastic curtailment of production for over a year.

On the weekly chart, the 3¢ low appears to be the very bottom of a parabolic move, and corresponds with the highs on the inverse chart. Volume at that price was 17k, while bids were not filled in the hundreds of thousands.

http://scharts.co/161osFJ

Sprott would be a natural lender for GBN.V, but I believe that bridge has been unceremoniously burned long ago. Lending for the La Ronge Gold Project, which has been grossly mis-characterized in the quarterly reports would be an essential growth strategy.

None of the proposed resource lending companies have done well at all, the exception has been royalty companies. Why? Because we have been in a generational bear market on an inflation adjusted basis since 2000. But you can't make that case with the S&P making new highs daily. Sprott certainly has blown out its own opportunities by demanding usurious percentages far beyond credit markets from companies facing bear market bankruptcy conditions. They have been SPECTACULARILY UNSUCCESSFUL.

Considering the preposterously absurd reserves, financial results as dire as you can make them, and a slough of resignations, Netolitzky is not looking for a growth strategy at all, but betting it all on seeking alpha in a depressed market. By attempting to keep secrects and tarring the company with the worst possible numbers, he is waving a huge flag that he has been keeping something hidden. At the same time, as managing director with minority control over the company, he has been SPECTACULARILY UNSUCCESSFUL.

The irony is that should they come up with truly spectacular numbers, there will be no reaction in the market. Just look at the reaction to developments in the Komis deposit. The hoopla has skipped over a known gold belt with spectacular results for a copper deposit in the Yukon, with Gold Fields and Kinross leading the charge.

The avenue left open is lending at market rates for growth and development at a sane, business like pace and steady, full production.

http://watch.bnn.ca/headline/headline-may-2013/headline-may-9-2013/#clip923080

-F6