Tuesday, June 20, 2017

Gold Vs Silver

To many novice traders, and investors it's assumed Gold and Silver are basically mirror opposites of each other, they just have different values per ounce.  That's not true. Hence why we have the Gold/Silver ratio which is used by commodity traders and investors around the world. I decided to take a look at the recent, and longer term performance of the two metals. Let's take a look at the widely held Gold(GLD) and Silver(SLV) ETF's through a few charts. First is the YTD chart.  We see gold has a near 5% lead over it's counterpart. 




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Next is a one year chart. Here the performance is much more similar at -4.10% & -6.61%.  Although you can see during this time Gold had some strong bouts of out-performance.

Visit StockCharts.com to see more great charts. Up next is a 3 year chart. Now we really start to see a wide spread in performance. Gold has out-performed, I guess we can call it that, Silver by 15.01%.  Either way long term holders are still looking at a loss.

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The spread widens for the last 5 years as Gold is down less by 18.7%. Let's look at the 10 year chart.

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Here we see a wide divergence. The performance spread between the two metals has reached 63.09%. On top of that longer term we see that both metals are actually showing gains for long term holders. Since June 2007 GLD is actually up 80.5%, while SLV has severely lagged at 17.41%.  Clearly there are distinct differences in how the market values each metal, not only in the short term, but on a long term basis.

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