Chart of the Day: The Gold Silver ratio (an update)

It's my favourite ratio chart in the whole wide world (because it's useful) and it makes and appearance here every two weeks or so. Here we go again.....

(click to enlarge)

....and this time the moral of the story is "let's not worry too much about the idiocies of the short-term. Eyes on the prize, people. Eyes on the prize". FWIW, I had a couple of separate conversations with market professionals over the weekend (a couple by e-mail, one by phone). The one thing they had in common was the phrase "I'm buying silver right now", and the only difference was the method.

For the record I think SLV is the way to go. It gives me the flexibility I want (being close to full liquidity at the push of a button is a big advantage). I also think there's a lot of paper trades to cover as we get close to COMEX delivery day, and the bigger players will be buying up open interest contracts at any price to close the arbitrage gap between silver/gold's paper price and the physical price out there at your local coin shop. And sorry, tinfoilhatters...as much as it might please you guys, I'm not expecting the total demise of the US dollar in the next couple of months.

By the way, I nearly put up the six month version of the GSR chart instead of the longer timeframe above because even though I know that most TA is mumbojumbo, it sure looks like a near-term head and shoulders is forming. You grasp at your own straws, I'll grasp at mine :-)