Gary Tanashian's  Instablog

Say, anyone else see a catch up move in the Gold-Silver Ratio just around the bend?  The chart suggests silver might turn out to be an effective hedge against gold.  I am now on a 4 for 4 streak short silver.  Going for 5 now with the caveat that I am never overly brave in the face of the rampaging and half lunatic silver bull.

Edit (2:02)  99% of the regular financial world ignores the message of charts like this, but the more the geek looks at it, the more the geek feels his blood run cold.  I know some of you are geeks too and the potential message of this chart is at once frightening and exhilarating.  Admit it geek!

Edit (2:27)  And in the event the GSR should not follow through?  That would indicate that there is a lot of b/s going on in the treasury market and that the deflation argument is exposed as a straw man MUCH sooner than currently expected.  Got to consider all possibilities.  For now, I lean strongly toward a catch up move in the GSR and the big D.




Disclosure: No positions mentioned