Tuesday 16 April 2013

Gold and Silver Ratio

Much has been talked about on the news on Monday about the huge drop in gold.

And right so, here's the chart for gold...that 9% one day drop is insane.  Part of me wonder if the gold people flocked to bitcoin and gold got the rug pulled out underneath.


However, gold obscures another metal, silver - the poor man's gold.  Silver took a bigger hit than gold on monday, dropping 12.6%!  That's a huge drop.  Below is the same chart for silver.



Interestingly, the gold to silver ratio is incredibly messy with all the fluctuations between these two commodities.  The ratio just hit a 1 year high but the 3 year chart shows the craziness that was 2011.  The gld:slv ratio has been relatively stable since 2012.  So expect silver to mirror most of gold's move...for better or for worse.



One thing I know...I'm glad I'm not John Paulson.  Haha...sorry, that's just mean I guess.


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