Market Report: Paper Gold and Silver Crash

by Alasdair MacLeod
Gold Money

As our headline chart shows, gold and silver prices fell heavily over the week, with silver crashing relative to gold. The gold/silver ratio now stands at 101.5, pretty much a record.

Gold was down $97 on the week by early morning trade in Europe at $1584, and silver down $1.75 at $15.67. On the year so far, gold is still up by 3.9%, but silver is down 11.3%.

This week saw equity markets crashing. In only three weeks the S&P500 Index had fallen 35% by last night, 9.5% of it yesterday. Bond yields have collapsed in a run to safety, with the 10-year US Treasury bond yield falling to 0.5% on Monday, though it rallied to 0.85% last night. And the dollar’s trade-weighted index hit a low of 94.9, before recovering to 97.9 last night. This is our next chart.

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