In a previous article (September 2015), I presented the following analysis (in italics) to show how we are close to a point were a significant event could happen in the bond market and/or gold & silver markets:
Above, is a chart (from macrotrends.com) that shows the ratio of the gold price to the St. Louis Adjusted Monetary Base back to 1918. That is the gold price in US dollars divided by the St. Louis Adjusted Monetary Base in billions of US dollars. So, for example, currently the ratio is at 0.28 [$1 125 (current gold price)/ $4 019 (which represents 4 019 billions of US dollars)].
On the chart, I have indicated the three yellow points (a) where the Dow/Gold ratio peaked.
These all came after a period of credit extension, which effectively put downward pressure on the gold price. Points 2 were placed just to show the similarities of the three patterns.
After the peak in the Dow/Gold ratio and point 2, the Gold/Monetary Base chart made a bottom at point 3 on each pattern. It is at these points that the monetary base could not expand relatively faster than the gold price increased. Today, this could mean that the point at which the game is up for those who are short gold and silver (in other words, the forces that keep silver and gold suppressed have been exhausted).
I do not know if point 3 is in on the current pattern; however, given the fact that the bullion banks are under pressure as indicated in the spike in the gold coverage ratio at the COMEX, it might well be. (Note that this point 3 is now almost certainly in since the ratio made a double bottom in November 2015)
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