june 28

Morning all,

Even though this may well have everything to do directly with fml - especially at present - some of you might think it would be better in the gold forum . You may be correct - however, I think it may well be crucial for fml and honestly, I believe we get better insight here with less hassle than the gold forum (they get led astray a bit) - so apologies if any think this is out of place.

To start briefly - yesterday I accidently scrolled back on the US pog DAILY chart - watching a WEEKLY macd ---- not a particularly useful exercise --------- however, I noticed something.

Using the scroll like an old fashioned ticker tape (just watching the macd, and when you see something ? different - then glance up at the trend) - ie. just allow the bars to flow past your eyes - just stare at the patterns. --------

What I noticed is that the last 2 months have been very different.

I went back to 1998 and there is really nothing like it. I don't want to go into a deep description of what I was seeing because it lead me to something this morning that may be more important - however, briefly -

The weekly macd setting used on a daily chart for the last couple of months is not very dynamic at all - it flows past you mostly under the line and hops up lethargically a couple of hops and that's it.
Gold doesn't do that much at all normally. I only found a couple of instances back to 1998 that were remotely similar - and only one of those where the price had been in correction.
That was followed by more correction, but not disastrous and the other time followed a slowly rising trend but then a breakout of massive proportion.
Does it mean anything?
Sorry, haven't a clue.

However,
this morning I stumbled onto Jim Sinclair's interview a couple of days back about China paying for Iranian oil in gold --------

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/25_Jim_Sinclair_files/Jim%20Sinclair%204%3A25%3A2012.mp3

What spiked my interest was that he said the last couple of months have been different?? Hmmmm, was that what I had been seeing? I don't know.

He talked about monetising gold - or using gold as money/currency - and now that China had done it - no small player - then it was beyond argument and very important at this time.

I then staggered onto a video --------

http://www.reuters.com/video/2012/04/26/gold-standard-inevitable-10k-oz-looms-sa?&videoChannel=1&videoId=233975545

Now coincidence? John Butler (don't know if he is a nut or not) - says that if the day comes when gold is monetised - then the whole physical game changes.

So, all this could be complete crud - but, for fml, if it isn't - and this change with China paying Iran - rather than some tinpot little countries -------- this could indeed be a very big deal.

Add to that the mere fact that we have a chinese shareholder - a very well connected one and that we are talking about some sort of deals with them and we are the 5th biggest producer in the country now (god knows what by xmas) ---

It also seems fact that China (and our chinese shareholders) want one thing and one thing only ------- physical gold - why? It might not be as simple as them just wanting to get rid of their US$ - the plot may just be thickening rapidly.

all this, if not total crud could be a very big deal for us.

Have a great day all, I won't be offended if you think I am mad.

Pinto