Here is what it means... Basically this ratio had better find support right here at the SMA 50 or I am going to once again cover the silver short in ignominy and let gold and silver miners ride naked and free.Here is what else it means... unless gold can establish dominance in the short term (it of course already dominates in the intermediate and long term vs. silver, and every damn thing else) you might wish to get ready for some serious inflation headlines. Maybe even the most serious kind. Because inflation fears will be threatening to break out and the environment would be potentially dangerous to inflationists and deflationists alike, in a game of winner take all, or Russian Roulette, or what have you.
Authorities are getting very anxious, and a wet behind the ears President is over there in China with his hat in his hand. Things could get really woogly soon. Best for a deflationary impulse to hit when everybody least expects it. But we sure may not get what is best, or the better of two evils.
Edit (12:00) Silver short covered once again. GSR SMA 50 remains intact, but I am going to use shorts on other sectors against gold & silver holdings. Too much potential for blow off here. Edit: (12:25) And in the event that I just capitulated the top, I'll accept thanks in advance for the wonderful contrary indicator that is me. We are in the realm of the monetary however, so shorting silver is dangerous because hyperinflation is entering the debate. I am going to increase the shorts on other markets as opportunities arise however, which should provide a nice spread short the garbage and long the good stuff.
