Why you should prepare for extreme volatility in gold and silver ...

Why you should prepare for extreme volatility in gold and silver

From Jeff Clark, Senior Precious Metals Analyst, Casey Research:

On February 29, gold dropped 4.8% and silver 6.2% (based on London fix prices). That?s quite the fall for one day. We?ve seen prices that have risen that much, too. But as I?m about to show, these ain?t nothin?, baby.

? Last Wednesday?s decline of 6.2% was one of the metal?s bigger one-day movements. However, it?s exceeded 10% on 14 occasions, 15% three times, and rose an incredible 20.06% on September 18, 2008.

You might think this kind of volatility is high ? and it?s true. Worse ? or better, depending on how you see things ? the volatility in the underlying commodity is magnified in the related company stocks. This is why Doug Casey calls mining stocks, especially the juniors, "the most volatile stocks on earth." But the thing is, metals volatility has been higher in the past, particularly during?

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Source: http://investtradebid.com/why-you-should-prepare-for-extreme-volatility-in-gold-and-silver/

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