The ratio between the price of gold and the price of silver is an indicator of the appetite for risk among the strange creatures who follow the Precious Metals markets.
Last year silver prices went crazy relative to gold. Instead of the previous range where gold was 60 to 80 times more valuable than silver, the ratio plunged to around 30 times more valuable. That plunge is the main feature of the chart above. Then in May 2011 the temporary insanity passed and the ratio started working its way back up to the mid-to-high 50s.
It looks to me that the ratio is heading back below 50. In practical terms this means that the price of silver is rising faster than the price of gold. Since the price of gold is also rising these days, people who own silver and stocks in silver miners are probably smiling again.