Gold and Silver Tussle for Ascendency
John Robertson
PortfolioDirect
The gold price has stretched its link with silver to the upper end of a relatively well-defined historical range. No law of nature prevents gold prices going higher without silver following at least as quickly. Even so, the two markets have so many traders tracking these arcane relationships that they seem to stand a good chance of remaining intact. It is hard to imagine silver prices rising firmly in the event gold prices were falling. Any resolution of the trading pattern will most likely depend on silver prices falling by less than a fall in gold prices or by silver displaying unusual leverage to a rise in the gold price. History suggests the link will require the gold price to rise. Movements in the prices of the two commodities over the past 45 years show that a 10% fall in the gold price over a month has been associated with an average 12% fall in the silver price.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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