A tug of deflation
The Gold/Silver ratio has been as low as 2 as recorded in Shakespeare immortal "Merchant of Venice" to 74 now,that is it takes 74 ounces of silver to buy one ounce of gold, a historical high. Yet the chart is in a downtrend,a sign weakness probably due to crashing energy and metal complex prices.Will the ratio come back to mean average if the interest rates are normalized? Almost certainly, but someone has to fire Janet Yellen first, and there ain't no body around to exorcise her, Obama being a Shiite Muslim and not trained in such a service.
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