Those familiar with the gold/silver ratio as a trading tool, e.g. Bob Hoye, know that when the price ratio suddenly spikes downward any gold rally in progress will end in a reasonably short period of time.

(The downturn in the ratio occurs because of the rapid rise in silver price)

I don't use the tool because I don't trade; but I make note of it just because I can.

The ratio also works in the opposite direction to a significant but lesser extent. When the gold/silver ratio suddenly rises it often signifies an impending bottom in the gold market.

Well this ratio has just gone bonkers to the upside. It temporarily posted a 92.7 today. That should mean that a significant bottom in the gold price has been established. Apart from intervention from "the powers that be" gold is excellently positioned for a large rise according to this very often accurate indicator.

P.