Loading ...Silver’s other driver
Gold is doing fine, as it’s primary driver is monetary equivalence. However silver has shown to be part monetary judge AND commodity demand driven.
Here is a proxy for that demand… China!
Resolve upwards and Silver fly’s… else.. Gold to silver ratio keeps grinding up as gold continues to our perform silver as silver lacks that world demand for growth.
I agree with your point about silver being part monetary/part industrial metal Patrick. However, this index rose from just over 6000 to over 14000 in 2014/2015. At the same time, silver fell from $22 to $18.
Yeah. Not sure what I saw that provoked my brain to fixate on cn50. Maybe when I saw the correlation pick up from moderately negative to moderately positive. That the monetary imbalance properties of silver were keeping it afloat.. and when the commodity driven properties picked up… it rocket fueled it. My thinking was that I need to find a way to properly balance proxies that add up to the actual value of silver. Ex.. 60% correlation with gold (proxy for monetary imbalance) and 40% correlation with a commodity demand proxy (China). I did not expect 100% correlation, but a smaller one. As a 100% correlation would imply that be the only and main driver for Silver. In essence, I’m trying to reverse engineer the ingredients in Viagra! Might need more time to digest.