Thank you for your sharing. This ratio is showing that the gold price could drop hard, or the miners would buy back and go negative to the gold price model. It's unbelievable that how long it has dropped. It's started even before the 2008. This must be a reason why the commodity market are imbalance, and a reason why USA lost in the industry productivity. So carelessly the Fed has done to the inflation. Everything has gone wrong with virtual reality.
@Victor.Y.F, Absolutely agree. They are saying still chasing inflation to 2%, yet most of commodities has risen in dozens of percent up. You can't make this up, yet people still not see how the purchasing power of the currencies has collapsed the last ten years. Gold and silver are mostly the answer to what people believe about the system (governments, central banks etc) not inflation per se on a continuing basis. Sure, there are times that precious metals are running to catch up with inflation, when people are losing their confidence in the system collectively. Fact is that central banks are trapped and they can't let rates rise because they will blow up their respective countries and their balance sheet as well. We are witnessing the last decade of the old system. They know about it of course that's why they are designing virtual currencies, probably eclipsing commercial banks from their creation of logistical money via debt. This way they will avoid bank runs and the future and will have simultaneously absolute control over citizen's financials. Miners is another story, since they are behaving counter cyclical and always opposite of banks and financial institutes. Maybe during late April/ early May miners will attack again, gaining against gold. But yes it's virtual world we are leaving in. Reality is a perception anyway. Cheers, P.