Gold Ratios—Time to Pay Attention

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". . .gold's consolidation vs. the assets of hope looks to be in its final stages."

We have been watching the GSR (among other indicators) tirelessly and its message for the markets has been actively bearish for about a month now. To review, when silver is rising relative to gold it indicates a willingness on the part of market participants to accept risk, to 'play.' The GSR has been working like a more sensitive version of the VIX in recent years. Ah, but there is literally a world of ratios that can be used to advantage when attempting to gauge the winds of the markets.

Even as many people micromanage nominal prices of asset markets, gold's ratio to commodities tells a story of a bottom in the making, which of course tells a story of a top in the making in what NFTRH called 'Hope 09.'

Let this short article serve as notice that gold's consolidation vs. the assets of hope looks to be in its final stages. This is a bullish sign. It is time to pay attention and it is time to get it right.

Markets travel in roundabout directions and cycles—both short and long term—must be endured. It is technical, sentiment and market ratio analysis that guides us through these cycles and keeps us on the right track. Consider what will happen when gold finishes consolidating the explosive ratio gains of 2008.

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