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Why has SILVER fallen so much more than GOLD?

COALPORTERCOALPORTER Posts: 2,900 ✭✭
in Precious Metals
Over the past 12 months silver is down 24% and gold down 9%. I wonder why?
(Other metals, like copper and platinum or closer to gold performance)

Does this mean that silver is "oversold" and could rebound to match gold,
or is gold set for more large declines?

Anyway, im staying away until metals become to cheap to believe.

Comments

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Silver went to an extreme in April 2011 with a 31 gold to silver ratio. It started from around 83 in 2003 after lagging gold during the 2000-2003 recession. If far outperformed gold from 2004-early 2011. And now it has been reverting to the other side as is the norm. Current ratio is around 73 and it may not stop until the 80's or considerably higher. The high ratio of gold vs. silver is a sign of reduced commodity liquidity and the tightness of overall credit. Silver tends to out-swing gold on each major move. Just the way it's been.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Anyway, im staying away until metals become to cheap to believe. >>



    Tough to predict bottoms, especially when central banks are running amok.

    Too cheap to believe may not happen.
  • cohodkcohodk Posts: 19,132 ✭✭✭✭✭
    Its still up 300% in 10 years. Not too shabby.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Percentage wise, silver fell more than gold because it previously climbed more than gold.

    PM corollary #12: silver prices are more volatile than gold prices. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

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