I had the Stooges shtick going back in April as the Gold/Silver ratio (GSR) threatened to turn (up) but instead the reflation trades got a big tail wind and silver began greatly out performing gold. The GSR broke down. But all that did was serve to drive it to a logical termination point similar to the Gold/SPX ratio shown in the previous post. Here’s the daily chart.
Here is the monthly big picture, which does not lend any more comfort to the risk ‘on’ and reflation cases than the above.