Gold and silver: similar, but different
Commodity Research – Gold and silver: similar, but different
Silver is often looked at in gold’s shadow. The price performance of two metals is 80% correlated. We find that the best way to model silver prices is by looking at gold prices.
However, we identify key differences between the two metals. Whereas gold operates like a currency or monetary asset, silver behaves more like a ‘normal’ commodity, responding to changes in supply and demand.
Silver is likely to trade around US$23/oz next year, up from just below US$20/oz …