via Twitter - Insane Prognostications

Keep your head about you, because gold prices closed in backwardation Friday. That would indicate a final upleg in the gold bull market. Afterwards, you can expect higher average prices, much like in oil or copper.

There are significant stockpiles and storage of both copper and oil, but they are unlikely to see a major dump simply because so much leverage is applied. Could you imagine if the world's stockpiles of oil or copper were dumped summarily on the market, much like in the bullion markets?

The following tweet about what will happen to money with gold in backwardation is too just too precious.

https://twitter.com/FredOneonine/status/432388596528459776

TLT Weekly

Should longer future dates continue to fall under price fixing, while the spot price is higher, then you might expect to see an inversion of lease rates for gold, making it possible to lease out your gold and make a return on your money, rather than say treasury bills that might be concomittantly in negative nominal rates.

The higher lease rates go, the more compelling gold leasing will be. Very probably with higher prices offtake will slacken, so the delivery context will probably remain the same, where most people who bet on bullion futures simply don't take delivery.

As for higher interest rates on U.S. treasuries, if the etf TBT has not provided a return in the last year, then it probably means that the hysteria about higher interest rates is unfounded.

TLT has seen a technical crossover in the ADX and is a layup for a major technical crossover of moving averages on the weekly chart. This means higher gold prices with lower interest rates:

http://scharts.co/1bJQfN2

$Gold:$CDW

The $CAD gold price is looking at the very same technical crossover, with slow upwards momentum.

http://scharts.co/17HxjtG

I saw something very disturbing the other day on a television commercial for Royal Bank. They are offering 9% GICs.

-F6