via SafeHaven - Maund On Gold

Clive Maund summarizes the results of renewed quantitative easing in the bond markets. Normally bonds would rally off the news, but what happens afterwards is that bond prices sell off.

End of September is the quarterly expiry for bond futures as well as ES Mini futures.

So any announcement that renews quantitative easing is bound to have deleterious effects on bond prices. By all rights, bond prices have come down far enough to warrant a brute rally in GBN.V stock. Or perhaps an upside capitulation out of sell-side brokers' positions, which are by now a losing bet.

Bids under the stock are very robust and have been so for over a week in anticipation of the effects of tapering. I assume that the Long Strangle strategy used in equity swaps trading held over GBN.V stock is still in vogue until the end of October, nearly a month away.

You'll want to take in some of the newly posted photos on the GBN.V website. The ore stockpiles at Lloyd have grown substantially, while they show overburden piles at Komis.

That silver is more abundant in the dore bars means that ore is likely being processed from Komis.

http://www.gold-eagle.com/article/maund-gold-0

-F6