They talk about a historical norm in the ratio of 16:1 (silver 1/16th the value of gold). They talk about suppression of the price of silver compared to gold, naked short selling, short squeezes, busting the banks that are the root of all this evil; over-shoot of the ratio to 1:1 or even a $silver price higher than a $gold price.
But, basically, it's all meaningless. Nobody has any idea what the GSR should be or will be. It's just trader-mentality speculation2.
Now, here's some more speculation for you. What if the GSR, for some buyers of gold, had already recently gone to and temporarily through 1:1? What would you make of that idea? You call bullshit on this idea and laugh as you reach for the X button on your browser window containing this blog post of a total idiot3, right?
1 Gold to Silver Ratio.
2 By trader-mentality speculation, I mean chasing paper currency gains hoping to beat some other market participant with your superior intellect, speed and trading prowess. These people ought to put their pimped lawnmower ride away in the shed for a while, and stop to have a think about the world instead of taking it in turns to play games of hide the sausage on each other.
3 www.federalreserve.gov/releases/bulletin/1208assets.htm
