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What is the relationship between gold and silver? What is the difference between the two investments
2022-03-25
1208
Gold and silver are very important precious metals for us.In our daily life,we like to wear them as our gold and silver jewelry.And in the investment market,there are actually many investors who are willing to trade gold and silver.So how big is the gap between gold and silver?What is the relationship between them?I believe this is a topic that everyone is more concerned about.
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From the past history,both gold and silver can be used as our currency and can be used freely in our life.And the relationship between the two is particularly close,and their relationship density can reach about 90%.That is to say,when the entire space of gold begins to rise substantially,the entire space of silver will also usher in a larger increase.To put it another way,when gold starts to become less and less valuable,the price of silver will actually depreciate slowly.
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What is the relationship between gold and silver?
Since gold and silver have a complementary relationship in real life,what is the relationship between gold and silver in ordinary life?Will there be a big gap between gold and silver in our trading market?
First of all,from the perspective of volatility,in fact,the volatility of silver will be more violent than that of gold.Why does such a situation occur?The main reason is because the market capacity of silver will be a little smaller,so in the process of trading,the price trading of the silver market will have a major impact on the entire market and will also bring great volatility to the entire price.
We look at it from a stock perspective,in the process of mining and development over the years.Most of our silver has been mined long ago,and silver is now very scattered,and the cost of the entire recovery is also very high.The vast majority of our silver has long since become a piece of our jewelry,or has become our utensils.
As our investors,in fact,the entire investment attribute of our silver will be stronger.To be precise,our speculative attribute will be stronger.Because the volatility of silver is particularly large,if the same amount is traded in the market,the whole rise and fall of silver may exceed our perception.However,in the gold market,the volatility may be slightly smaller.
It is precisely because the volatility between the two of them will have a certain gap,so when the market enters a comprehensive bull market.The entire investment property of gold may not be as strong as that of silver,and the entire market space of gold cannot successfully outperform silver.But after coming to a flat market,the whole activity of gold will actually be a little stronger than that of silver.
Moreover,the entire fluctuation of silver will be like a pool of calm water,and there will not be too many waves.And there is a certain price difference between the two varieties.Looking at their entire price ratio,the ratio of gold to silver is generally maintained at around 40 times.Occasionally there may be a large deviation,and after a large fluctuation in the market,this deviation may reach 60 times,or 80 times.
But as the market starts to calm down,they're actually going back to around 40 times.In other words,the two are actually like a spring,one is growing and the other is growing.When one side starts to rise,the other side starts to slowly fall.
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It is precisely because of their positive correlation that when we see gold rising sharply,silver does not have much volatility.Then,under normal circumstances,silver will also usher in a large increase in the next period of time,which will bring itself a lot of space and provide itself with more opportunities for market analysis.
On the other hand,if we see that the price of gold is falling sharply,the price of silver is basically unchanged.Then at this time,the space for our silver to fall will be further opened,so we can also well grasp the opportunity of this wave of decline.
What is the investment difference between gold and silver?
In the first aspect,the sensitivity of the two is different.This is the same thing we mentioned earlier,knowing that the market disruption to gold will be even greater.In particular,the purchase price of gold in our market will also have a greater impact on our investment market.The overall market volatility of silver is mostly influenced by the industrial side.Because the vast majority of our people,in the process of life,the pursuit of gold will exceed the pursuit of silver.
In the second aspect,the price fluctuation range between the two is not the same.In most market conditions,the fluctuation speed and space of silver will be larger than that of gold,and the entire fluctuation of gold will be relatively stable.
The third aspect,the market demand for gold and silver is also very different.Because the price of gold will be much higher than the price of silver,under the same circumstances,some people may choose to buy silver,but they will not choose to buy gold,resulting in the carrier volume of the entire market is also very different..
In the fourth aspect,although the volatility of the environment is not so great.However,most investors still particularly like gold.As investors,everyone thinks that gold has a risk-averse sentiment.At the same time,it can also have more participants,not only our ordinary investors will participate in the gold market,but also have a large number of financial institutions in this market.They are also hedging the gold they have deposited,hoping to better preserve and increase their value.
Although silver is a little more volatile than gold,there will be more investment groups in gold.
In the fifth area,the profit situation is different.The same trading of gold and silver is carried out.Under normal circumstances,the yield of gold will be higher.In other words,we are investing the same amount of money,but in the gold market,we can get higher returns.But in this market of silver,our yield will be relatively low.
The above is the difference between gold and silver.After reading today's content,I believe that everyone has a deeper understanding of the entire gold and silver investment.
The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.
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