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The economies in developed regions rebounded from their lows in March 2009 in what appears to be an inventory restocking. The inflation pressures remain, yet the unemployment stats confirm this is neither a robust nor a broadbased recovery and it has been fuelled by QE, which is now fading. Meanwhile inflationary pressures have risen somewhat. The inventory restocking phase has now started to diminish and this is otherwise known as STAGFLATION. This is very bearish for gold and gold stocks and looking a tthe price action, it would appear a BEAR MARKET in these iteams is there. There is no reason to buy a gold stock nor a precious metal in these conditions. THE GOLD/XAU RATIO Many have commented how this ratio is extreme here. I would say if gold falls a lot then the ratio comes in, and gold stocks have further to fall. So, to be careful in this regard.