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Why has silver been so stagnant?
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<p>[QUOTE="hutch5831, post: 1640607, member: 43169"]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).</p><p><br /></p><p>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?</p><p><br /></p><p>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.</p><p><br /></p><p>I hope this helps.[/QUOTE]</p><p><br /></p>
[QUOTE="hutch5831, post: 1640607, member: 43169"]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.[/QUOTE]
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Why has silver been so stagnant?
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