$Gold Monthly

In the monthly gold price log scale chart, you can fill in the volatility smile and skew a little more easily than on the weekly chart. A very nice hammer forming for the month of March, though I should have waited for the close of the quarter.

I also filled in certain prices adjusted for inflation according to ShadowStats, marked by an 'x'.

http://scharts.co/19Zp043

In the monthly linear scale chart some of the values have been changed and 2009-related values will be modified when those values come in for 2014 dollars. We are at the end of a 42 - month financial derivative a-pallooza in the gold futures market, which probably makes March the closing month.

My guess, considering the light blue line, is that the 2014 fourty-year inflation adjusted average gold price using CPI is probably ~$1130/oz. The light blue line also lags ShadowStats numbers of the inflation adjusted 1969 price fix of $42/oz. The ShadowStats fourty-year inflation-adjusted average gold price aught to be much higher.

http://scharts.co/19Zshk3

I will also repost the Volatility Skew article via The Risk Glossary:

http://www.riskglossary.com/link/volatility_skew.htm

Note that these types of deterministic price curves are nothing new, and go back to 1973.

GBN.V:$Gold

Should GBN.V share prices ever return to life and catch up with the U.S. gold price, this chart will be helpful.

The simple way of looking at liabilities on the balance sheet, is that they are based on doré bars held(or that were held) in escrow, priced at the average production cost.

So, if you have $100m. in liabilities, it perhaps represents ~240k oz. of production. The average cost would have been ~$416/oz. That means all of the operational cost for refurbishing the mill, extensive drill programmes, mine development, road building, trucks, etc. have all been depreciated from the whole. If you add, say ~$8m. in liabilities, then you would have produced 80k oz. @ a cost of $100/oz.

I have to conclude that the balance sheet is about to be squared, where they may have raised capital of over $300m. Could be as much as ~$400m.

http://scharts.co/1ab3o11

- F6