this is from gene arensberg's got gold report:

The gold:silver ratio (GSR), which reached a 16-year high in October of 88 ounces of silver to one ounce of gold, has once again spiked back up to the level that should attract robust conversion of gold to silver. As of the Friday close the GSR was back up to 82.95 ounces of silver to one ounce of gold using cash market closing figures.

While the very high GSR is an ominous sign for global equity markets generally, it may also accelerate the exodus of silver metal from the COMEX member warehouses as investors take advantage of the rare opportunity to convert gold into silver at such historically high conversion rates.

Speaking of the COMEX silver inventories, just since October 17, the inventory of silver metal of COMEX depositories has dropped by an eye opening 4,932,992 ounces. That’s metal leaving the COMEX for the physical market or for industry.

http://www.resourceinvestor.com/pebb...