romans holiday

Quite short term that chart.

Sideways for the summer I think... and maybe stratospheric after the summer on the next meltdown in the markets.

The pressure must be getting to him... but then it always has.

Has the worm turned? The ratio could be signalling the markets up here.

Hmmm... to hazard a guess.... Uncertainty?

JW is a lot less lucid.

Do you see deleveraging or reflation more likely Steve?

A credit contraction and continued deflation will, perhaps perversely, strengthen the dollar in the short/medium term. Though I prefer to think of it as a cruel justice as a debtor nation is made to feel the squeeze. Willie's rants read like the sermons of a moralist; the US dollar ought [bangs the table] to become worthless. This is not going to happen anytime soon.

Good news people! Gold has "arrived" and is finally going mainstream. Have been listening to CNBC tonight and every break they are running an ad for "thegoldbug.com". Gold is finally respectable. Expect the general public to become more aware of gold as an investment vehicle and institutional investors starting to move in. This would have to build for a year or two before we see the beginning of any manic phase. http://thegoldbug.com/

Its a good plan which I think a few are pursuing. If there is chaos and confusion in the market this trade could be very lucrative without the need to commit further capital.

Yeah.. but for those bloody markets!

Ratio nearing 73. Anyone thinking of buying silver with gold if it hits 80?

Markets do not exist in some abstract space. Neither do they spontaneously arise but rather develop concretely within a social order and can never be "free" from the constraints and regulations of society because it is this very society which provides the conditions and law by which people can trade. I am amazed that markets became so polarized to government in the economic politics of new right ideology. Something so contrary to common-sense could only arise as a violent reaction to what proceeded it, namely socialism. Neither a socialist nor libertarian be.

If only nominal prices of houses are being supported - with the intention to deflate the real value of houses by depreciating the currency - it makes perfect sense to sell and rent. With the proviso of course that you put the realized equity from the sale into an asset which would preserve the current value of the cash.... namely, gold. If you are uncertain whether reflation/inflation is possible - and that deflation may rule the day - then it is obviously still a good idea to sell and reduce your debt burden. In this scenario, though you would be less certain of currency depreciation [due to a conventional 70s style inflation], the risk of a currency devaluation remains [on the fx market] so it would probably be a good idea to hedge your cash by say having half of it in gold. Either way, selling an over-valued asset in a collapsing market looks like a good idea to me.

Even if it did play out like that [which I think unlikely] you can reduce the risk involved by first having a reasonable position in bullion and only then using the volatility of the gold/silver ratio in order to increase your holding. I think there is a high likelihood that the ratio will become more volatile and the markets become more confused as they gyrate between inflation and deflation scares. Con-flation anyone?

opps.

The 900 floor looks pretty solid to me. There has been no quick near vertical decline for gold here. imo there are just too many investors lining up to buy gold and holding the price up. It is a QE world now and gold is a currency.

I would not be surprised to see a continued pattern where the market alternates between inflation and deflation scares. I like to think of this as "con-flation" where the market will remain undecided between inflation and deflation for some time to come, and also where it will be "conned" from time to time. It would be more about market psychology here than fundamentals though fundamentals would have to play out in the more medium/long term [and in the short term when the market is in deflation mode]. An inflation scare could once again be easily ignited. Investors are still nervous about QE, stimulus and treasury buying by the Fed. Though the dominant force in the economy is deflation, the dominant ideology at work in the minds of investors is the "quanitity theory of money" as epitomized in the monetarism of Friedman. This is a powerful idea and it could take quite some time before it is finally discredited. In the interim, the conditions are fertile for further inflation scares, and indeed it will be in the interests of the monetary authorities to provoke them. My strategy will be to swap silver to gold on the inflation scare when the ratio is 50 and swap back to silver on the deflationary whiplash when the ratio gets to around 80.

Yeah, have to say I prefer what Morgan says to Turk, Puplava et al. Morgan is sounding more and more sober and deflationary these days.. which is an improvement. If I can buy silver at a good price on this dip I will hope to make some money on it. Not by selling for dollars but trading for gold on the next inflation scare waiting in the wings.

Will be interesting to see how much the ratio can retrace before heading down again. Maybe to 74/75? Now 72.

David Morgan. Be careful with Silver Wheaten which could be affected if base metals are caught up in a slump in commodity prices. Silver going lower though not to $9 before rallying of course. http://howestreet.com/audiovideo/index.php...ediaplayer/1280

Yeah, the world will muddle through. Just another depression.

I wonder who that could be. .....V

I think currency "collapse"/depreciation can be built into the pyramid if you consider that assets above the [reserve] currency depreciate while concomitantly, or at a later date, the currency also depreciates against gold. Conceivably, assets [say a house] could depreciate by a a factor of 2 against cash while depreciating by a factor of 4 against gold. Of course, this has nothing to do with the hyperinflationary idea. Also, peripheral currencies would be further up the pyramid. An investor would do well in the reserve currency, but exceedingly well in gold.

More circles. http://www.greenenergyinvestors.com/index....st&p=116039 Credit is central to the Austrian economists about whom you post often. Perhaps you are more a monetarist?