...That’s enough about the stock and bond markets for now, making it time to switch our attention to precious metals. We will draw on the above in transition however, as what happens in the stock and bond markets will have a material effect on precious metals pricing, bringing us to the following question. If this is all true, when will gold be allowed to rise? Answer: When the bureaucracy starts to feed on itself and defections become apparent. But as long as the bureaucracy is growing, as is the case in the States right now, the status quo will be maintained as the pigs are still in charge of the barnyard (think Animal Farm) with their deceptions. (i.e. all funded by imaginary money via inflation.) So, it’s when the inflation mechanism becomes in trouble, which will be signaled by gold and interest rates rising in tandem. (i.e. inflation flowing from bonds to gold and silver.)

Like in the attached, too many people think gold has got further to correct into spring (whenever), and are betting that way, which is why it becomes unlikely to happen in spite of the stock market’s overbought condition or any other reason one cares to conjure. And as for the Gold / Silver Ratio, which is also discussed in the attached directly above, as you can see both the author (and consensus) think it’s about to rise as the stock market collapses, and these people are betting that way (they are out of precious metals), significantly increasing prospects for an opposite outcome. This means that although it may not be a smooth ride, which you can count on given Big Brother isn’t finished with us just yet apparently, some serious buying could come in moving forward, again, contrary to the consensus.

In measuring probabilities in this regard then, as you can see here, the Gold / Silver Ratio is presently 64ish and falling (gapping below the 200-day MA yesterday), however from a historical perspective, one that measures gold’s relationship to silver when they were both revered as money, it was closer to 20, which was witnessed throughout history when silver was considered money along with gold. So, what a declining Gold / Silver Ratio indicates is a return to such thinking, and will become a reality when the bureaucracy’s sacred bond bubble bursts, which is happening as we speak. What’s more, a declining Gold / Silver Ratio means increasingly people are coming to the conclusion that based on present circumstances, circumstances that involve all fiat currencies being debased at increasing rates, gold and silver are the best alternatives to store value because they cannot be debased. (i.e. at least not quickly, as the commodity must be mined out of the ground, which is becoming increasingly expensive.) (See Figure 2)...

http://financialsense.com/fsu/editorials/petch/2010/0412.html