!PRII Monthly

Pring's index is saying deflation is over. What that also implies is a decline in the dollar to a trading range as commodities average out.

You could not obtain a better defined auspicious low without resorting to complicated formulations. Notable to the discussion is that oil prices have capitulated. This also suggests the $CAD has overshot to the downside.

http://schrts.co/VIGlSA

!PRII:!PRDI Monthly

The gold/silver ratio has reached the same high as on prior occasions. This means financials and utilities will probably recede, since deflation is over.

http://schrts.co/6NpRNF

$Gold Monthly Annotated

If deflation us over, and interest rates remain where they are, then interest rates will plunge below inflation again. The annotations on this chart are meant to describe the various periods where derivatives were in play during the bull market. I don't have the technical terms correct, but think I Have the interval correctly pointed out.

Very likely a 'forwards skew' will be in play, meaning consistently higher prices for bullion.

http://schrts.co/vEFs7s

TLT Monthly

Notable to the discussion is how far gold prices have lagged treasuries, but also how far mining stocks have receded into recession.

You can probably compare the rally in mining stocks in 2005 against treasuries and the position they're in now and not be far wrong.

http://schrts.co/WiMvMw

GBN.V vs. $Gold Monthly

A chart we haven't seen in a long time is the structured trade held against mining stock, and why equity swaps that manage risks in holding mining shares are so highly valued and why gold stocks lost so miserably.

GBN.V is the red-headed step-child of the gold mining industry, and prospects in the La Ronge Gold Belt happen to have been ground zero for the gold mining swindle before the advent of BRE-X.(I truly wonder if the collapse of gold exploration companies in the late 1980's were not the inspiration for the later BRE-X pump-and-dump)

http://schrts.co/oIBpTR

-F6