Are We On The Cusp Of A Gold & Silver Breakout

In reviewing the charts over the last few days, a pattern seems to be emerging.

The silver gold ratio followed the markets lower during the 2008 crash, while moving parabolically higher during the silver rally in 2010. 

From anecdotal reports as well as the MF Global bankruptcy, it appears that both silver and gold for delivery are in extremely short supply.

The point and figure charts appear to show a double bottom for both silver and gold.  On this basis and on the supply demand side of the equation, it appears that another major breakout will begin shortly for the precious metals.