More to Go on Silver Adjustment
John Robertson
PortfolioDirect
The silver price has begun to retrieve the losses against gold accumulated over nearly five years. The shorter term of the two charts highlights the five percentage point outperformance by the silver price since the end of June and a total gain of 27% since the beginning of June compared with the 12% rise in the gold price. The chart also shows that the upward silver price momentum has stalled somewhat over the last few days. The second chart puts these near term price movements in the broader historical context of the past 35 years. Despite the size of the recent relative price movements, the silver price remains near the upper end of the historical range in the gold/silver price ratio. The historical pattern suggests a strong tendency to mean reversion in the ratio. The history also suggests that the price adjustment process can persist for many months once commenced and before being completed.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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