Gold and Silver Prices Correct

Gold and silver prices have been too stagnant for too long and the current motion to correction in both the gold and silver markets are symbolic of that. For over three months, gold and silver have basically been sideways markets, making little way on the upside or the downside. In some markets, a sideways action is basically to be expected, but in gold and silver there is typically more volatility.

Gold and silver are historically volatile assets. At least, that’s how they’ve been seen since the advent of paper debt systems that have been ruling the market for the past 30 years. Before that time period, gold and silver were not only stable; they were the most stable form of wealth. Gold and silver enjoyed a rather celebrated valuation in social systems. Unless there was a discovery of a new mine, gold was regarded the same since Ancient Rome.

In current times, that traditional valuation has been in a type of conflict with paper markets. This is the basis of the discussion between investors and speculation in what are known as “derivatives,” or paper contracts with absolutely no tie to any underlying value or good. Gold is the quintessential underlying value or good and has been for all of measured human history, and therefore enjoys a different type of status in markets.

It is only in the paper markets of current time that gold and silver are considered to be volatile assets. As they are traded at market, they produce a kind of volatility. Money is made in markets when values rises or fall, thus making investments and speculation profitable.

Over the past three months and the stagnant market in gold and silver, there has been little speculation or money made by the rising and falling of the price of gold and silver. The current correction, though it is a movement downward, is welcomed as a signal that the market is alive and well and again moving. For such a market to be involved in such a protracted period of doldrums is atypical, especially in this market environment. Investors are more comfortable with movement in gold and silver prices as they can get a better sense of the market and where it’s going.

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