In the past 6 months, gold has swung from lows in the 1590s, to 1794 dollars. A change of 200 dollars. But in the same time, silver has only swung from 27.76 to 35.10. A change of 7.34 As a percent, gold has swung 88.6%, while silver has only done 79%. Can anyone explain why silver is just sitting?
Ummm explain the percentages to me. As they stand I have no idea what the question is, nor how the data adds to the question.
If your swings are correct, silver, up 26.4%, has out preformed gold, up 12.8%. However they’re both down now and yeah, they’re not making much of a move one way or the other.
Actually, as a percent, silver has moved faster than gold. You are dividing the old price by the new price and saying that's how much it "moved." If you think about it, a lower percentage would mean a higher increase in the price. (Assume you have two different commodities "A" and "B." They are both valued at $100 per unit. One year ago, "A" was valued at $25 while "B" was valued at $50. It is easy to see that "A" has gone higher and faster. Using your logic, "A" has gone up 25% ($25/$100) while B has gone up $50% ($50-$100). The way you would calculate the percent is a little more complicated. You would take new price minus the old price and divide the difference by the old price. Using my arbitrary numbers from above, for "A:" ($100-$25)/$25, or $75/$25, or a 300% increase in price. For "B:" ($100-$50)/$50, or $50/$50, or a 100% increase. Make sense? Using the numbers you used for silver and gold, silver has gone up ($35.10-$27.76)/$27.76, or 26.4%. Gold has gone up ($1794-$1590)/$1590, or 12.8%. So in the time period you chose, silver has gone up at a pace of over double that of gold. I hope this helps.
Gold and Silver respond to economic uncertainty more than anything. Now that people have gotten use to the "new normal" prices will be flat or recede. The next climb will be triggered by the next economic crisis, be it no one purchasing treasury notes, or rapid inflation, if that occurs. Otherwise, it's the long slide down.
With the market above 14k people artificially believe we are doing better than we were a few years ago. This artificial and inflated market has distracted investors away from silver and gold. This trend will quickly change when the bond and stock market bubble pops. Keep accumulating and you'll be rewarded sooner rather than later. The "Paper Apocalypse" is coming.
Please explain why you think the stock market is in a "Bubble" when it is trading below average historical multiples. In addition, it does not appear to me how equities are trading at a high relative volume. Are you looking at different numbers than me. An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is "trade in high volumes at prices that are considerably at variance with intrinsic values".[SUP][1][/SUP][SUP][2][/SUP][SUP][3][/SUP] It could also be described as a trade in products or assets with inflated values.
Someone already beat me to it, but you're only looking at the absolute changes. By proportional percentages, silver has actually increased faster than gold has in the last 6 months. (You should calculate percentage changes by taking the change and dividing it by the old price, not the new one. Common math mistake.) Both gold and silver seem to be levelling off now though, I'm guessing because the supply lag has caught up to demand. Plus, the perception at least, is that the economy is stabilizing and recovering (if that perception changes, expect precious metals to make a steady climb again).
When you print as much money as the US does everything becomes inflated. 85 Billion a month. QE is bad news.... The stock market is not immune to it. Do you feel we are as stable as we were in in 2005 and 6? The bond market is also in a bubble... a 200 year high. Something has got to give and my bet it's the stock and bond market, not gold or silver.
I think we're losing sight of the original point to this thread; Detecto has no idea how to do basic math.
I am not happy with the money printing, the debt, the spending either, but it is important to keep the facts straight. The fact is stocks are not in a bubble, and at this time, even with all the money printing, it has not inflated our currency. Now do I feel comfortable in the current economic condition, No, I don't, but to assume equities are in a bubble and destined to collapse is a grave mistake. In 2006 equities were trading at much higher multiples than today, ie. they were more expensive and were overvalued. What happened? They came tumbling down. On the other hand, SLV was trading as low as $9 which is well below the cost of production, ie. It was cheap and undervalued. What happened? It soared. Flash forward, to 2013. Silver is at $30 which is around 50% higher than the cost of production. No getting around the fact it is expensive. Equities are trading at below average historical multiples so you would have to consider them cheap. So we have expensive silver, cheap stocks and a lot of variables that we cannot change or even understand how they will all line up. My money will be on the cheap stocks, because, Well they are cheap. We will count our toys at the end of year.
