IKN

Thy sin’s not accidental

Chart of the day is…

…the Gold/Silver ratio. Here’s the six month evolution of the GSR:

That recent spike is innarestin’, innit? When the Greece crisis bloomed fully, the market wet its knickers about a deflationary future and silver sold off compared to gold. But when same Mr. Market worked out that the TheLeadersOfTheFreeWorld™ were going to save Greece by throwin a great big bucket of moolah at the country, the conclucion was “Aha! We got inflation!” and silver ran right back to the previous level.

Here below we take a longer view, with three years worth of data. Note that since the Financial crisis, silver has not recovered to that 52X averaging range.

Why should that be? Same inflation/deflation reason, cos the fat lady ain’t sung yet.

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