Conclusions

The bond market has seen a crossover of the weekly 13-week EMA with the 34-week EMA and the 89-week EMA. That means lower interest rates. And in the meanwhile, gold prices have wound up lower than they were when bonds were priced at the same level.

If this really was the end of the bull market, you would see a bearish capitulation. But this is a correction in a bull market, so a capitulation in not required. (as if last June's price capitulation wasn't enough)

The Government Of Saskatchewan financial securities regulator must be an incompetent, nepositic office where down's syndrome runs in the family if they casually overlooked what is going in GBN.V.

But I would say that securities' regulators, including Revenue Canada will intensely scrutinize the company should they actually come through with a mezzanine capital arrangement, simply because short sellers are getting wiped out, and they so happen to be the banks, who are the conservatives' best buddy.

Sprott And Sandstorm were not the best thing for investors in Colossus, in fact the larger capital interest wiped out the smaller through debt. But investors made losses on the takeover of Canada Flourospar, even after the provincial government put money in the project.

Unless GBN.V pays dividends in the hopes of fending of larger capital interests, then they're staring straight at a cheap buyout, regardless of the subclauses of their arrangement.

Especially should gold prices revert to the bull market again.

-F6