Commentaries, Silver

GSR Bottoming, now what?

With all the tedious micromanagement of the gold-silver ratio (GSR) that has gone on here, all the ‘talking in riddles’ and vague concepts, what is the actual meaning behind things?

Damned if I know… I am going to leave the great questions to be answered by the great minds. Is this the end of the financial world as we know it? It should be, given that it is built on lies upon lies. But here in Wonderland, things don’t usually work out as they ‘should’, now do they?

So I will just continue to specialize in my own little corner of the vast, wheezing Ponzi scheme on the verge of meltdown. Our junk bond to investment grade bond indicator has come in… sentiment has come in… VIX, US Dollar… all in. Then there is the big daddy of my personal investment (and investment avoidance) stance, the GSR.

Of particular interest to me is the GSR’s relationship to the gold mining sector. Now, this is a free blog and I gladly share some general things, but it is now getting serious and the serious focus must remain for the people who pay for it, in the newsletter. The time for fooling around with the Hope ’09 (and Full Hubris ’10) stupidity is at an end. As a bottom feeder and a buyer of peoples’ misery and misperception I must now get on the job.

Meanwhile, here is a chart of the GSR and its longer term correlation with HUI. Draw some conclusions (among them that gold stocks can get royally hammered even as the rising GSR indicates rising gold miner fundamentals), have patience and turn down the noise; that would be the harangues of the inflationists and now, increasingly the deflationists as well.

Time to begin sorting through the debris, with patience and perspective. There, how’s that for a riddle?