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<p>[QUOTE=&quot;Rono, post: 1651238, member: 6492&quot;]Howdy folks,</p><p><br /></p><p>I suspect that Juan is correct about the GSR establishing a new equilibrium much higher than the historic 15-20 to 1 range.&nbsp; Hey, stuff changes and we need to also.&nbsp;&nbsp; Another somewhat related change in metrics is with the Gold/XAU ratio.&nbsp; This measures the POG divided by the XAU which is a set market basket of mining stocks similar to the DOW or other stock indice.&nbsp; Historically numbers higher than 5 represented a signal to buy stocks relative to bullion while a number below 5 was a signal to buy bullion relative to the miners.&nbsp; Well, it&#039;s at 11.62 right now and has run in the high single digits for this entire bull market.&nbsp;&nbsp; Anyone heeding it&#039;s signal since 2002 has gotten hammered as this number continues to get worse.&nbsp; </p><p><br /></p><p>My thinking is that it&#039;s due to the bullion ETFs.&nbsp; Before they arrived upon the scene average investors pretty much had to buy mining stocks to play this arena with securities.&nbsp; &nbsp; There was no friendly way for the Joe 6 pack to invest in pm&#039;s unless he bought physical bullion . . . and many folks don&#039;t want to do this.&nbsp;&nbsp; </p><p><br /></p><p>Anyway, this is another historic metric used by investors far and wide and these days, you better adjust how you read it.&nbsp; What the equilibrium level is these days?&nbsp; Geez, WTF knows?</p><p><br /></p><p>peace,</p><p><br /></p><p>rono[/QUOTE]</p><p><br /></p>

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