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Saskatchewan's SECRET Gold Mining Development.

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TLT Monthly

On a daily or weekly basis, the TLT does not look entirely healthy. But the monthly chart is saying lower interest rates are in the cards, and the trend to lower rates is meant to continue. There's a spread between gold and treasuries, but also a spread between gold and mining equities.

Investors can borrow themselves into a corner, which is probably what they've accomplished with lower interest rates. Gold mining shares are not focussed on paying dividends, so the first thing chucked out would be mining stock. We've been 'eating alpha' ever since.

The major indeces have depended very heavily on central banks vested interest in propping up the stock market only insofar as that measurably devalues the currency. But lower interest rates are also behind corporate buy backs and trading activity in stock.

If further QE is required, as higher interest rates are damaging economically, then gold and gold equities aught to move to make up the spread. But gold mining equities are under the gun to pay dividends, as this is THE DEFINITION of a 'gold mine'

At the same time the source of unprecedented supply has been redemption out of ETFs.

But in general equities are set for a rout on deteriorating credit as high grade corporates are running ahead of deteriorating junk bonds. Interest rates on corporate credit can rise independently of benchmark rates, and this was the notable change in the housing bubble collapse in the US, where mortgage rates exceeded benchmark rates.

BECAUSE gold mining equities are so disastrously undervalued, they stand to benefit as interest rates decline below inflation.

http://schrts.co/WiMvMw

-F6

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