Why Silver Often Pulls Back Harder Than Gold During Downturns
If you have been following precious metal prices for a few months, you may be wondering why the price of silver often pulls back much harder than the price of gold during those retreats. We explain why this usually happens. For starters, liquidity in the silver market is much lower than liquidity in the gold market. This is because the gold market is several times larger than the market for silver. Consequently, when a market force impacts both markets, the silver market exhibits more volatility because its liquidity is smaller and therefore reacts in a more pronounced way. For example, on May 14 the price of silver retreated…