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Insight: Gold Rebounds after a Bloodbath (Continued from Prior Part) Gold-silver ratio gains
Gold prices fell to a five-and-a-half-year low on Wednesday, November 18, as investors looked ahead to minutes from the Federal Reserve’s latest policy meeting for further clues on the December rate hike. Silver prices have also been plunging alongside gold. The fall in prices for both precious metals has caused the gold-silver ratio—that calculates how much an ounce of gold equals in silver ounces—to stand at 75.84. This means that it requires almost 75.8 ounces of silver to buy a single ounce of gold. Below is a chart of the price movements in the gold-silver ratio.
After the hawkish stance by the Federal Reserve, both gold and silver started falling. However, silver has been falling at a greater pace. On a trailing-30-day basis, gold lost 7.9%, whereas silver lost 10.5%. Due to the comparatively higher losses in silver, the gold-silver spread or the gold-silver ratio has surged.
The gold-silver ratio fell seven out of the past ten trading days, and it’s currently trading above the 100-day moving average price of $74.5. As the current implied volatility in gold and silver prices are both above the average 10-day volatility, the gold-silver ratio too ought to be more volatile.
Tracking ETFs and miners
Due to higher losses in the price of silver compared to gold, the ETFs backed by these precious metals have also followed a similar route. The iShares Silver Trust (SLV) fell 10.3%, more than the 8.2% fall in the iShares Gold Trust (IAU). Most of the mining companies, like Silver Wheaton (SLW), Franco-Nevada C(FNV), and Randgold Resources (GOLD), have seen their prices retreat on a trailing-30-day basis. However, other company-related factors also affect the prices of these stocks. Silver Wheaton, Franco-Nevada, and Randgold make up 14.7% of the Market Vectors Gold Miners ETF (GDX).
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Randgold Resources Ltd.
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PRODUCER |
CODE : GOLD |
ISIN : US7523443098 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Randgold Res. is a gold producing company based in United kingdom. Randgold Res. holds various exploration projects in Tanzania. Its main assets in production are MORILA, LOULO and TONGON in Mali and OBUASI in Ghana, its main assets in development are KIBALI (KILO-MOTO) in Congo Dem. Rep. of, MASSAWA in Senegal and GOUNKOTO in Ghana and its main exploration property is MIYABI in Tanzania. Randgold Res. is listed in Germany, in United Kingdom and in United States of America. Its market capitalisation is US$ 1.9 billions as of today (€ 1.7 billions). Its stock quote reached its lowest recent point on November 07, 2003 at US$ 10.03, and its highest recent level on January 04, 2013 at US$ 99.88. Randgold Res. has 93 804 000 shares outstanding. |