Gold-SIlver Noise Comparison 10 Mar 26

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Understanding what percentage of the current price action is noise-driven and what percentage is fundamentals-driven helps prevent emotional/panic response to volatile market swings. The metric used is a Haar Wavelet* that is efficient at separating noise from true signal without being whipsawed.  
The fundamentals underpinning gold are: safe-haven asset, hedge against inflation, a component of country foreign reserves, monetary metal, increase in demand from China and India
The fundamentals underpinning silver are: industrial demand (Solar panels, EV batteries, semi-conductors, defence [missiles, communications, drones] medical devices); increasingly becoming a monetary metal like gold, severe production deficit for continuous 6 years ; 70% of silver is a by-product of Zinc, Copper, Lead. Increase in demand from China and India.
 
Key Takeaways

-Silver noise is 3.2x higher than Gold (12.8% vs 3.9% of price)

-Both metals are undervalued vs their fundamentals — Silver by $4.23, Gold by $61.00

-Silver momentum is negative (-$1.10 over 10 days, -$0.08/day trend) — short-term weakness

-Gold momentum is positive (+$1.84 over 10 days, +$0.95/day trend) — mild uptrend

*Wavelets are a relatively new revolutionary digital signaling processing (DSP) technology that outperforms conventional DSP like Fourier Transform, Kalman Filter, Discrete Cosine Transform. and Hilbert Transform

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