$Gold Monthly

It comes as a surprise that Chinese regulators take a dim view towards malicious sellers of Copper, but not of Gold. But Chinese policy is diversification out of treasuries and into bullion. Notable selling before the market open suggests that selling is happening on the London markets, where ETF gold is stored. On the day where Chinese exchanges see a wipeout drop on brokerages, gold drops closer to Ackerman's target, suggesting a panic divestment in the face of drops in overseas markets.

Long-dated interest rates have declined, while corporate rates have risen. This is gold positive. In terms of inflation, using Shadowstats is helpful in determining the inflation-adjusted price based on the last fixed price in 1971. It's also a measure of how much interest rates are below inflation. The gold price spread with Treasury bond prices is the best indicator of just how far gold prices have been drubbed.

What this chart means is that inflation has advanced against interest rates, which has now dwindled during the stock market rise. Any time you hear that stock prices are a function of inflation, and that declines are a function of deflation would be an absurd way of measuring inflation or deflation. But you hear it all the time. Is the asset bubble a result of inflation? How do people account for the failure to meet new highs?

Fully expect to see Ackerman's target with the 1st of December. The opening of the month usually means a brutal dumping of bullion contracts. Is the Skew over? Perhaps the Skew ended, but that short interest has won the day since July.

http://schrts.co/Roq4OH

-F6