Further Observations on Silver’s Decline and Gold’s Role

In an unexpected twist of the precious metals market, silver’s recent decline is said to be tracking that of gold. This observation comes directly from TD Securities’ Senior Commodities Strategist, Daniel Ghali.

The cause of this parallel decline? Liquidity.

Ghali explains that a rise in liquidity can actually lead to a reduction in the value of precious metals like silver and gold. This can be attributed to investors’ increased risk-taking, leading them to pull their funds from safe haven assets like these precious metals.

It is an interesting correlation that Ghali and his team at TD Securities have identified and worth noting for any investors active in the precious metals market.

The market will surely be keeping an eye on this trend and it remains to be seen whether the pattern will continue or if gold and silver will reclaim their previous values. Read More