Abstract:
It was observed that during the 1980s, the price of gold was USD$850 oz as compared to silver, which was USD$50 oz. Lately silver stock report proved that while gold has risen further silver dropped to USD$15.83(as on 9th January, 2008). Studies reveal that since 2001, there has been wide disparity in the ratio of the increase in silver prices with that of gold price. The ratio of silver to gold accounted for 55:1.
It was observed in the year 2001 that if there was an increase in price of silver by 70 or 80 ounces, increase for gold was only by 1 ounce. However, during the period 1980, the ratio had dropped to 15:1.
Following the commotion, which prevailed due to the Chinese stock markets way back in 2007, stock markets were heavily impacted. In fact, silver stocks did not go unscathed. The circumference of the silver market throughout the world is very small. The period between 1973 to 1974, witnessed silver stocks rising to 115%. During the same period, the highest it attained was 241%.
It normally so happens that whenever stocks begin to fail in the stock market, silver and gold manage to survive the doldrums. Silver stock report states that during the period March, 2007, silver stocks nosedived by 14%. This drop occurred just within five days of trading. With this abrupt downfall, people were apprehensive about the silver stocks. In 2006 June, silver stocks declined by 35%. If stocks are very volatile, gains are more within a short span of time provided the investment has been made correctly.
There was an instance when it was declared that silver stocks in China primarily direct the silver stock market around the globe. This created a lot of chaos and confusion in the stock market. Despite all these speculations, silver was quite high at 27% yoy.