Disclosure: I'm an amateur investor and certainly not a trader.
I was looking at the price graphs for gold and silver while wanting to buy some bullion as a "safe" long-term investment. However, out of curiosity I overlaid the long-term (1970-present) graphs for gold and silver and noted a stark runaway of gold growth relative to silver post-2008, excluding only 2012.
I know it's nothing useable professionally because it's two graphs with different price values, but it got me thinking. You can see the correlation in price between gold and silver, but that last year shows gold climbing while silver shrinks.
Gold production is higher than ever thanks to the increasing industrialisation of Africa and Eurasia, and I can't imagine that production/industrials demand from jewelery and electronics is keeping pace. Assuming the trend continues, I don't see how the current price of gold is sustainable as the safe, long-term investment it's touted as. Can any vets help me understand this? Are we just relying on new markets to keep buying and hoarding it to maintain pricing?
Submitted January 28, 2022 at 02:46AM by naraic42 https://ift.tt/3GaGs45
