This 30 year chart of the G/S ratio below, that Ed Steer had posted and borrowed from Ted Butler for his column this morning, I found somewhat daunting. It appears the ratio has reached the bottom line of triangle with the RSI and MACD ready to reverse meaning gold would again be out performing silver. With today's market action, silver surely seems to be still out performing gold, moving the ratio to approximately 45:1, near violating that lower line.

It will be interesting to see if this continues in this direction or will we see a reversal in the ratio (eventually I'm sure) but still achieve higher PM prices with gold leading the way. After reading Eric Sprott's article, "Gold Tsunami", the coming demand out of China alone will be an uncontrollable juggernaut for gold by itself but very doubtful that silver will be left behind. I'm just trying to imagine what the chart would like with a suggested Bix Weir price for silver at $6000/oz. down the road?