By way of example, when the ratio is high, an Trader may sell some in their gold holdings to purchase silver, Consequently raising the amount of silver they own relative to gold. Conversely, if the ratio is lower, they may market some silver to purchase much more gold.
This allows them to most li
The reasoning would be that the spread will diminish with time In case the ratio is high and increase with time If your ratio is minimal. Some argue the gold/silver ratio may be used for a gauge to measure the risk hunger for stocks.
Forex Image: Definition, Historical past, and Examples A forex
One example is, once the ratio is high, an investor could market some in their gold holdings to buy silver, Consequently rising the amount of silver they have relative to gold. Conversely, when the ratio is small, they may market some silver to get a lot more gold.
The gold/silver ratio is calcul
If pessimism turns to worry, then gold could either: – increase if markets are more worried about the USD or EUR losing their paying for ability than about close to-time period liquidity requires, as was the case from time to time from 2009 by means of 2011.
Gold has also viewed A different