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Strong positive correlation
- First, silver and gold prices usually have a strong positive correlation. Since 2004 the one-year rolling correlation of their daily price moves has hovered around +0.8 (Figure 2). Second, silver is more volatile than gold. As such, when gold prices move up, silver tends to move up more, thereby lowering the gold-silver price ratio.
www.cmegroup.com/insights/economic-research/2024/four-factors-driving-gold-prices-relative-to-silver.htmlFour Factors Driving Gold Prices Relative to Silver - CME Group
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Nov 7, 2023 · We can therefore affirm that the price of gold is more closely correlated with the price of silver than with that of the S&P 500 over the long term. And the prices of other commodities, such as palladium and wheat, also seem to move fairly symmetrically with gold.
Jul 3, 2024 · Explore the intricate correlation between gold and silver prices, uncovering factors, trends, and strategies vital for informed precious metals investment decisions.
Jun 10, 2024 · Our econometric analysis shows that gold and silver prices are negatively correlated with changes to one another’s mining supply. A 1% decrease in gold mining supply, on balance, boosted gold prices by 1.9% and silver by 3.0% from 1974 to 2023. A 1% decease in silver mining supply boosted the prices of the metals by 1.3%-1.6% (Figure 10).
Aug 17, 2022 · While gold and silver have a strong positive correlation, the ratio of their prices has ranged widely, from one ounce of gold buying as few as 30 ounces of silver in 2011 to as many as 120 ounces of silver in 2020 (Figure 2).
Today, the gold-silver ratio is no longer the subject of political controversy. In recent decades, the ratio has largely favored gold although silver has experienced a rebound lately. We identified a number of key drivers of the gold-silver ratio on both the supply and demand sides. These factors include:
Sep 13, 2023 · "Silver tends to be more volatile than gold, while still maintaining a close correlation of price movement over the long term," Alex Gordon, director at ETF Managers Group, told MarketWatch....
Silver and gold prices share a correlation coefficient of 0.91. Industrial demand for silver accounts for 54% of aggregate demand for silver. To put this in perspective, industrial demand for gold accounts for only 10% of aggregate demand for gold.
