Financial Historian Bob Hoye: “The gold/silver ratio has been a reliable indicator of credit conditions. It declines during a boom and does its greatest service when it typically signals the credit contraction by increasing. The key move in 2008 occurred with the turn up in May 2007 from 46. This was with the reversal in the credit markets and the technical break out at 54 in August anticipated the fall disaster. Often during the more acute phase of a panic, silver can dramatically plunge relative to gold.”

With FED’s historic intervention since 2008 above matrix has turned on its head.

Gold to silver ratio made 300 years high recently. Living while history is made. Only few times in last 100 years GSR has been near 100. Recently it was in 2008 financial meltdown at 95 and prior to that it was in 1991 topped at 100.

Gap theory is that top gaps never get filled but bottom gaps do. GSR is filling all the gaps left behind while it was climbing higher. Mother of all GAP is left behind from 2011 near 30. Way down below.

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Gold to Silver ratio daily