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No. That's not good. The elastomer is probably giving. Is your timing mark's relation to TDC still accurate? That's the more common result of a bad balancer. You should change it before that outer ring separates and starts flailing around your engine compartment. :eek:
If the balancer is bad, which sounds likely, a new one is still available from GM under GM #6272222 which lists for $94.50/each. All 69-71 with base engine use this 8" balancer which is 1-5/16" thick. L-46 and LT-1 use an 8" balancer which is 1-11/16" thick.
69-71 base engines are the ONLY Corvettes which use the 6272222 balancer. Later base engines (L-48) use a 6-1/2" balancer.
nunus79 is correct you better check it quick before your radiator eats lunch and cost you a new one. Quick check is the timing mark or just run a straight edge on it. There are a number of other possibilities but a separated balancer is a common problem with SBC.