Gold Silver Ratio

1 year daily chart of the Gold Silver ratio with a 20 and 50 day moving average.

The RSI indicator above has a peak in late September 2011 and another during the latter half of December 2011. The trend line connecting these two points in on a downward trend, but the ratio depicted in the chart below is on a bullish uptrend.

This is what many technicians call a divergence which may signal a decline in the ratio going forward (?)  When? It may be a little while as Silver needs more speculators to come into the market to push the price back up over the $30 level and then past the $40 level (again). 

Hedge funds are most likely waiting for the Silver chart to start producing higher highs and higher lows before they invest capital back into this market.