The volatility, a technical indicator controls and alerts about the inflation of the prices of precious metals. The change of the prices is analysed and is compared with the older prices. It also checks the speed of the inflation of these metals. If the market prices crosses more than the given range or if it starts increasing faster than the appropriate i.e. more than the average of the older volatility then, the indicators will signal.
Volatility is the standard deviation calculated from the older (historical) prices. Here, higher the volatility of the metals in market means faster the price of the metals in the market changes. Altogether we recognize 2 kinds of volatility: historical volatility and implied volatility. Historical volatility is the volatility that has the real changes in prices of the metals that are resulted from real measurements. Implied volatility is derived from the pricing formula in such a way that we put in the formula the current price of the instrument. It is mostly used for options. It informs us about the volatility that is implied by the option’s price for the time of option’s maturity. However, for the computation of indicators used in mainstream technical analysis, historical volatility is used.
Tech analysis of gold and silver prices over the last 10 years –
The tech analysis is a comforting picture proving that the price volatility of these precious metals remained much lower compared to Dow stock indices or movements across various markets.
Gold price volatility –
The seasoned traders vouchsafe that incorrect data on trade set offs a few days ago. The spikes in gold price volatility are to be checked from tech data at other markets.
Buy gold worth at least US $ 1000 every time
Do you buy gold?
Do you have investment surplus? Are you looking for opportunity for investments where the returns are better than those from Bank deposits, government securities, etc! Gold purchases offer promise based on historical trends noticed for last 5 years.
All the other investments are outshone by gold that appreciated by 3 times in just last five years! Further appreciation of gold now slated to go up by 2 times to 5 times within next five years! The next best investment in terms of returns is real estate but entry and exit into real estate is still tougher! Comparitively, gold acquisition is an easier process.
After a long stagnation for 15 years till 2002, gold prices witnessed the following trends in US $ per ounce as below for the last 10 years!
Gold Historical Prices
Source: goldprice.org website
Gold prices are expected to increase as:
Gold is real money and real symbol of people’s prosperity! Only 2500 MT gold is mined per year worldwide! The mining costs are becoming increasingly expensive every year making gold mining unviable with many locations the world over!