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Old 02-25-2013, 10:32 AM   #1
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Q: (physical) gold more volatile than silver??

Hello guys,

Unfortunately, I've never kept any historical records of my local coin shop prices on & , but, from following them both closely (daily/couple of times per day), it seems to me, that the traditional wisdom of "gold as a store of value, silver for a little bit of trading, being more volatile", from my anecdotal evidence (again, I haven't collected historical data on this, since I started following metals), simply seems NOT TO BE THE CASE. Every time I put recent price figures into my spreadsheets, silver performs better to the upside than gold (=more volatility, as expected/popular wisdom dictates), but to the downside, it actually tends to hold BETTER than gold (=less volatility when going downwards). Both expressed as percentages of the price, of course, so it accounts for the price difference between the two metals.

Does it ring true with you, folks?
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Old 02-25-2013, 11:21 AM   #2
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Absolutely true Bushi. When gold rocks a little higher, silver nearly always makes a larger percentage move. The same can be said about the downside.
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Old 02-25-2013, 12:22 PM   #3
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ancona has it right - silver does do the downside pretty well too, remembering selling much of mine in the high 40's...

You're not comparing phyz this to paper that, are you?
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Old 02-26-2013, 05:14 AM   #4
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no, I just put into my inventory spreadsheet my local dealer's daily prices, and in it, my DCA'ged silver never seems to go down by so much percent, as gold sometimes does. In fact, it rarely goes red at all, and if, than only slightly

But thinking about that some more, it probably is just lucky timing of my silver purchases - I timed it quite well (with the help of many of you - thanks again ). So my "statistical evidence" might be skewed, because of my low entry point(s). But again, I wasn't bad with my gold entry, as well...

I am not sure what to make of it. Oh well
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Old 02-26-2013, 06:54 AM   #5
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I would suppose the GSR would be a definitive measuring stick for your question excepting that it doesn't account for premiums on physical metal. Pick your time window:

http://goldprice.org/gold-silver-ratio.html
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