Sunday, August 29, 2010

Silver Will Lead the Next Liquidity Blast

The gold to silver ratio, one of the oldest measures of risk aversion to risk - hemorrhage to liquidity, continues to roll over. As I have said before, silver will lead gold during liquidity injection (cost push inflation) phases. A break of the June to September support zone would market the end of the consolidation and will mark a continuation of the liquidity injection phase that started in November 2008.

Gold to Silver Ratio (GSR):

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