via NowandFutures.com - Negative Real Interest Rates

The 'sell gold' indicator on charts from the NowandFutures.com website is almost indistinguishable from the 'buy gold' charts. I would say that a 'buy' signal was completely mistaken, in that it clearly looks like a sell signal.

But that would go to say that gold prices are where they are because of a demand mania, and that an historic sell-off resulted in backwardation in gold prices, since prices have retained their value.

But Jeffrey Christian says there's absolutely no correlation between gold prices and interest rates, though he does say gold is fairly priced, and to expect higher interest rates. I believe we should expect lower interest rates should the main indeces sell off, and higher gold prices, due to the fact that interest rates are below inflation, and will find themselves below inflation using hedonic stats eventually.

The 1973/74 market should be the one to watch, as this is the best analogous economic for the present day, without making comparisons to economic depressions which occurred under a gold standard. What might occur in the gold sector is governments legislating a devaluation of currency against gold, if only to prevent gold prices from rocketing into the stratosphere.

http://watch.bnn.ca/#clip1075226

source: http://nowandfutures.com/forecast.html#predict_gold

$Gold Weekly

In the gold weekly chart, I removed any analogy that banking interests may be attempting to formulate another volatility smile derivative, since implementing one would only result in further gold dumping but very little price variation.

Thus we return to a normative gold bull market, with the exception that this leg upwards has been in backwardation.

We have moved from the 89-week EMA back to the 13 - week EMA.

http://finance.yahoo.com/q/fc?s=GCF14.CMX+Futures+Chain

http://scharts.co/1kClfB6

GBN.V P&F Weekly

It really depends on what GBN.V management does with their gold in escrow that matters, and when they intend to carry out whatever plan they have in mind.

They have escrowed production over the last three years and used the escrow account to prepay any work carried out in the ensuing year, possibly as much as 15k oz. a year. That the company reported they produced 11,674 oz. by the end of the calendar year suggests that they are pre-paying for the 2014 calendar year, out of production in the 2013 calendar year, but that the rest of production carried out while the mill was supposedly shut down, has been escrowed and follows the implementation of the Waterton Prepaid Bridge Facility.

The company has not sought capital in three years, leaving a glaring, open question as to where the money is coming from. This has led to an asset-liability mismatch, where dore bars held in escrow are under the liability column.

It's very clear that they intend to develop in the vicinity of the Jolu Mill, on those deposits delineated in the 1980's, but failed to attract development capital. This is where most of the development work has gone on since 2009, though no publicly available information aside from the Google Maps sattelite photo of the area would indicate that this has gone on.

stockcharts.com P & F

http://ow.ly/uRsOt

-F6