This classic risk ratio is in its own bull market. Look at the spike last week, which may kick off another monster rally in 2010. Interesting also how it turned up all the way back in September.

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Checking the archives, I see that I charted this bottom as it happened.

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Silver did make a peak just then as I’d anticipated, but then it charged ahead with gold to briefly trade over $19. The deflation trade should not be kind to it in 2010.