Tuesday, August 5, 2014

silver is plummeting, so obviously that means economic contraction

Silver is droppin' bad!

And when silver goes down more than gold, the GSR goes up just because division of a numerator by a denominator works that way:

And when the GSR goes up that means imminent economic correction, because both wharrgarbl and potato.

Let's just ignore the weekly ratio chart which is doing nothing interesting at all:

Let's especially ignore the embarrassing fact that three years of an uptrend in the GSR has coincided with something like a 70% gain in the S&P 500. Wow holy corrective environment for asset markets, eh Batman?

The gold-silver ratio is an utterly meaningless made-up indicator. Don't waste your time with it.


  1. Hey the fredom guy thinks like you do, sorta: http://capitalismandfredom.blogspot.com/2014/08/now-is-time-to-buy-stocks-not-sell-them.html

    1. No but seriously when you're still in the first years of what could be a secular uptrend that could go on for another decade, anything other than a monotonous buy call requires significant economic evidence to back you up.

      I wonder if Jojo still thinks there's a crash coming in the S&P and "there's no way this is the beginning of a secular bull market".