This is the summary that I have seen today after the FOMC meeting result last night: S&P 500: +1.09% Dow: +0.9% Gold: +1.15% Silver: +3.4% Copper: flat Brent Crude: +2.7% ASX 200: +1.35% (yesterday and this morning) Interesting.. Why does Silver goes up higher than Gold ? is it due to the price still lower than Gold.
There is some subtle differences between gold and silver. * Gold has a "safe haven" status that sees increased demand during times of political/financial uncertainty, upheaval and instability. * Silver has more industrial use and so has more of a commodity component, so it gets increased demand alongside other commodities (eg, copper) So, my summary explanation is along the lines of this :- Low real interest rates and a determination to push for inflation by the central banks is good for both gold and silver. But there being a bit less uncertainty and instability after the FOMC (in particular) has held gold back a little and with a push toward inflation and general strength in the commodity/consumption space (also usually goes along with inflation) then there has been a bit more upside for silver. Just my opinion. DYOR.
Also, silver is generally more volatile than gold. So if gold goes up, silver often goes up more. If gold goes down, silver often goes down more.
Why do you think there is a link between the silver's price and the gold price? How can I know if gold is expensive ? It doen't give any income so Ican't predict the return on the investment. For me it's just another investment in my protfolio
