GBN.V vs. $GOLD Monthly

Taking in the recent moves in the gold price, and understanding that Long Strangles have been in use in derivatives markets as you would use in futures markets trading strategies, you come up with some very surprising results when measuring GBN.V shares prices vs. the $US gold price.

There would have been a Long Strangle strategy in vogue for six years from the end of 1996 until the end of 2002, where gold miners rose dramatically vs. gold prices, but remained range bound. The $US gold price would have to be a variable within the derivative formula.

Everything fits quite snugly.

The $1300/oz. gold price is the line in the sand. The green moving average is over 200 months.

http://scharts.co/134TdHA

-F6