This chart is the key to what happens next with silver. After attempting to break through the 45 level three times since 1984, the gold to silver ratio finally did just that on silver's run up to $49.75. This surge in silver relative to gold knocked the ratio all the way down to 32. With the massive correction that silver has just experienced, the ratio is now back up to 42.26. This is looking like a case of testing the breakout or testing the breakdown however you want to look at it. Look at this chart and you can see where we have been and where we are now.
The point is this. Silver finally broke out in terms of gold and quickly ran up in price. It is now getting close to testing the 45 area of support/resistance. If it holds, look for silver to once again move rapidly higher in terms of gold as gold heads higher at a slower rate of appreciation.
I fully expect that the gold silver ratio will once again reach 16 or possibly lower than that. Owning silver can be a religious type of experience. As Jim Sinclair put it, "Silver, thy name is Volatility".