What is the relationship between the price of crude oil and the price of silver?
Stock and commodity futuresThe stock market is influenced by speculative factors, which resulted in another case, that is when the stock market fell, investors will be out of money into commodity futures market, such as crude oil market, the silver market, in this case, oil and gold prices will rise.
Silver price and crude oil priceSilver is Inflation Hedging products, while oil prices means that inflation will follow the development of the economy, increasing uncertainty. This silver hedge hedge will be favored by people. There is a positive correlation between silver and crude oil, crude oil prices rise indicates that silver prices also rose, indicating the decline in crude oil prices with the price of silver will fall. In the long run, silver and crude oil volatility trend is basically the same, but the size of amplitude difference, in general, the price of silver and crude oil prices are related.
The strength of the dollar is an important factor affecting the price of silver, there are three main reasons:First of all, the dollar is recognized as the world's hard currency, the dollar and silver are international reserve assets, the strong dollar weakened the position of silver as a reserve asset and hedging functionSecondly, the United States accounted for about GDP of the world's 1/4 GDP, the world's first foreign trade volume, the world economy is deeply affected by it, and the price of silver is clearly a reverse relationship with the world economyThird, the world silver market are generally priced in dollars, the dollar will inevitably lead to a surge in silver prices, on the other hand, dollar denominated silver for holders of other currencies is cheap, it will stimulate demand for silver.Therefore, the trend of the dollar and the price of silver should be the direction of change in the relationship
Dollar exchange rate and oil price and silver priceMoney is the measure of commodity value. The value of the goods is relatively increased, currency devaluation, the value of the goods is relatively reduced, currency appreciation. The dollar as a global currency, its exchange rate reflects the global commodity value in a certain extent. The current global commodity trading is priced in dollars, accounting for about 65% the level of the world's foreign exchange reserves in dollars, the dollar exchange rate of the commodity trading market, futures market and economic benefit redistribution pattern have important influence. Affected by the U.S. dollar exchange rate fluctuations have a relatively large silver, crude oil, metals and other commodities.
