Often it is said that silvers price rises faster than gold, but drops faster than gold too. Well, seems to not be the case here, % wise about same drops. 1570>1377 is -12% 27,50>23,42 is -15% Theories?
of course i think gold spooks the silver market. i think people think of gold and silver similarly and if they drop gold they drop silver. i don't know anything on the technical side or how additional precious metals enter into the market, but have entertained the idea that there's way more gold than is accounted for yet we the people are led to believe it is more precious than it is, and so it is used to manipulate currencies as well as silver. the gold-silver ratio should be a fiction, right? considering uses of the metals, how much was hoarded over centuries and how much remains. anyone familiar with Sterling Seagrave - The Gold Warriors? he proposes a staggering hoard of gold, probably impossible, actually, but some suggestions of political administrations (U.S., Japan, Philippines) keeping stockpiles secret.
Some say that silver price is fixed to gold. I'm not wise enough to know precisely how that is done. But just looking at the charts alone, anyone can see that most of the time, the 2 metals go up and down in relative tandem....not perfectly, but relatively. That's because, I'm assuming, the price is determined largely by paper investors who may see precious metals in a different way than a stacker might.
Keep in mind, I'm not talking about price-directional relationship, but price-percentwise. According to what is often touted, if precious metals drop, gold drops % wise less and silver drops % wise more. Same for rising, gold rises % wise less, silver rises % wise more. Some claim that this is due to silver being a smaller market (the latter being true), and it may be a plausible explanation. But this latest downtrend, gold drops % wise as fast as silver. A quite bigger market drops as fast as a small market. And that is what is 'different' now.
Gold volume today was about 1.5 times average from last half year. Silver volume today was about 40 times average from last half year. (Last daily silver volume ATH was about 7M and today is going to be new daily volume ATH. At the moment todays daily volume is 20.5M, so todays volume is going to be more than 3 times bigger that last ATH daily volume.) Any thoughts why?
