$LIBOR:$UST3M Weekly

Probably the most important chart in the world that has gone unnoticed is the $LIBOR:$UST3M, or the TED spread. The key to this chart, I think would be to toggle between log scale and linear scale. Log scale tends to exaggerate the dips, while linear scale tends to exaggerate the peaks.

What is suggested here is that in the aggressive demands to raise rates in the U.S. and commit to a normalization of interest rates, LIBOR went below treasury bill rates. Or perhaps LIBOR itself went negative at the end of summer last year.

You can see how this might inveigle banking sector officials of the importance of gold under such circumstances. And that the heart of money in the world, the source of money is profoundly ill at ease and possibly the nature of the beast is a liquidity trap with no exit.

Gold is the only benchmark form of money with no interest rate attached that can provide for a solid foundation for money with no implied notional value. Gold's price is what it trades for on the market in a 24-hour period from the simple fact it's a commodity.

By comparison, currencies have notional and implied values attached based on interest rates.

http://schrts.co/FU4F7A

$Gold Daily

So given that profound changes in the market place focus the strongest emphasis on short term funding liabilities, the form of money that remains liquid at all times is gold. Thus the gold daily chart has some legs and prognostications on short term changes in price are suddenly valid assumptions, when they weren't a few months ago, to everyone's surprise.

Who would have thought?

http://schrts.co/YG7Ums

$TYX:!PRII Weekly

Another chart of high importance, though not followed is how interest rates have fallen against inflation. A short hand for this idea can be found in the TYX/PRII, where longer term interest rates have now fallen below inflation, and desperate demand for yield have made certain that gold prices may remain dependably well bid foreseeably for very long periods of time.

Gold prices are lagging this indicator as the third moving average crossover confirms the change of trend in gold prices since the low in December.

http://schrts.co/IfQShG

via CEO.ca - Integra Gold Commences Underground Exploration.

And what of the mining sector? Has the evil eye of risk banished the dwarves from their generational caves once and for all? Does gold simply appear on the futures market without first being blasted, hauled to the surface, crushed and chemically treated, refined, money exchanging hands, and placed into vaults? Or are mining investors fools that rush in, wearing bow ties and round glasses, splitting their hair in the middle, and spouting Austrian Economics for the idiots in attendance should they be so anointed?

It certainly seems that Mordor has it in for GBN.H shareholders. But we have certain conclusions to go by for the moment before we ourselves wind up in bankruptcy court.

Integra, one if the best comparables to go by, considering the main thrust of construction at Jolu and Star Lake is underground, and least of all simultaneously at Roy Lloyd and EP, could account for the massive waste rock stockpile near the EP Mine that has accumulated over the last three years.

The liabilities recorded in each of those three fiscal years past were ~$110 m. a year, which is easy to see now where the money was spent if you assume the costs for developing these mines are similar to Integra building an underground ramp at one location.

The capital came out of the 'borrowing from the borrowing' if you will, from the initial asset based tranche raised out of the EP Mine Supergene enriched pay streak.

So mining is ongoing and people will risk the capital. It's just very difficult to remember that there's now a light at the end of the tunnel during the pro-forma bankruptcy. The salient point is that the creditors were paid IN FULL, and in large amounts of capital.

If so, where did the money come from?

http://bit.ly/2a9RcCM

-F6

GLTA