AlexandreNygal

Gold VS Silver : Pick the right one either for long or short !

OANDA:XAUUSD   Gold Spot / U.S. Dollar
The US election is taking place as I am writing these lines... As a protection, a lot of investors and traders are willing to add some gold             (or silver             ) to their portfolio, which sounds like a great idea because of the uncertaincy of this very particular event.

But on that strategy, you should be careful to the one you are picking, weither you go for long or short (depending on your own scenario of the vote outcome). Before the beginning of November, gold             and silver             were quite correlated. But since the 31st October, this correlation has changed : silver             tends to get stronger than gold.

Whatever the reason of that could be, here is the conclusion you should take for your precious metals' investments :
- Better use Silver             for long positions
- Better use Gold             for short positions

Moreover, if you guys strongly believe that this situation will remain for the next few trading sessions, you can also try to initiate an arbitrage position : buying silver             AND selling gold             , so that you could take profits from the difference.
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