GLD

A lot of speculation about bullion sales from ETFs as part of the dishoarding that participated in the decline of gold prices would leave one wondering just what they intend to do. Certainly if gold prices are meant to advance further, then they are required to buy back all of the gold that was sold in a panic.

Most certainly affluent investors sold their ETF positions, but kept their physical gold which is not part of their trading position.

The ETF price is mimicking bullion prices very well, and perhaps even leads the game.

GLD appears to be forming a continuation pattern, bullion prices might do the same:

http://scharts.co/147jqo8

$SPTGD

The S&P TSX Global Gold Index is at an extreme inverse correlation with the gold/silver ratio. The bottoming process could last for a few weeks here, individual stocks will have slightly different time frames.

Normally gold stocks bottom in August.

As we have seen in GBN.V, it didn't matter how extreme technical indicators were, prices continued to decline in a frenzy.

Dial the time frame to 'Fill The Chart' on a weekly basis to see just how far along this index has come off the highs, and that the inverse correlation is now 'in the zone'.

The black momentum line in the ADX indicator has not yet turned, so price declines in gold stocks are still warranted.

http://scharts.co/147jqo8

$ONE:GBN.V

In what is probably the surest sign of difficulty on the sell-side has to be that TD Securities marked down the price of GBN.V shares after the close to 0.03¢, where it closed at 0.04¢.

As you can see, price rises in GBN.V shares are according to price declines in treasuries. The don't exactly happen on the same day, but will eventually adjust.

There was a trade that was disallowed on Wednesday to 0.03¢, which appeared briefly, but then taken off. This is another sign that any downside price manipulation outside the permitted trade, which is sell the miner and buy the treasuries is not allowed.

So far, 0.03¢ only traded on very low volume in the past month.

http://scharts.co/ZRkUNV

via FTAlphaville - U.S. collateral shortage lives on

Shortages of U.S. collateral will mean that QE is here to stay.

http://ftalphaville.ft.com/2013/05/17/1506362/the-us-collateral-shortage-lives-on/

via Elliot Wave International - Sentiment extremes

Elliot Wave International discusses sentiment extremes, but neglects to inform their readers that gold mining stocks are at sentiment and price extremes not seen in many decades. People have written off gold, but they have absolutely no appreciation that gold miners provide the market.

Not that I think GBN.V prices will necessarily reward investors with price extremes to the upside in an extreme bear market. GBN.V with its grossly misrepresented La Ronge Gold Project will see overwhelming free cash flow once full production is implemented.

http://ow.ly/l8c2U

via Minyanville - The dark side of QE

"Cue the Power Reverse Dual Currency Note. You can’t make this stuff up. If you ever had any questions about whether the Fed had control of the US bond market, Friday was an eerie example of what can go wrong. What was even scarier about last week’s FX and bond market volatility is that some esoteric foreign structured product that no one has ever heard of showed how fragile and susceptible the bond market has become."

http://ow.ly/l8d3d

via SafeHaven - Comparing long-term gold-mining bull markets

I think that following comparison is not valid unless you go much further back to the depression era.

Gold miners have been lagging gold prices since 1967!

http://www.safehaven.com/article/29795/comparing-long-term-gold-mining-bull-markets

-F6