$Gold/$Silver - Weekly

The gold/silver ratio continues to advance. We are seeing now weekly closes that suggest that gold prices will advance against silver in a coming credit collapse, since gold is closing higher against silver on a weekly basis.

On a technical basis, lows should have been described by the stong inverse correlation with GBN.V shares months ago. What this suggests is that the market is into capricious pricing with the abolishment of the no down-tick rule a year ago. The red arrows depict when GBN.V stock is at a technical high and low due to being at an extreme inverse correlation with the gold/silver ratio.

The grey arrow is meant to point out the unsteady correlation with the gold/silver ratio at this juncture. What I expect is that a firm, definite realization on the part of market players that gold is set to advance in bearish conditions for commodities in general will beckon a definitive change for GBN.V, and gold miners in general.

A series of higher highs and higher lows would suggest that silver may tread water while gold prices advance strongly.

http://scharts.co/13gzfJo

$SPTGD - Weekly

Gold miners set to bottom here, based on the strong inverse correlation with the gold/silver ratio. GBN.V has been so oversold for so long that you might not expect the same technical condition.

The precaution should be that gold miners heavily exposed to low grade copper with gold by-product aught to underperform.

http://scharts.co/13BL1wD

-F6