GOLD

AND SILVER PRICE ANALYSIS

PROJECT USING R STUDIO

Statistics of Environment

Raymond Einyu
Statistical Background on the Gold and Silver:
Its noted, the prices for both gold and silver varies on a daily basis. Although each counts
for the market value of the two metals despite of the fact most countries’ economy is
reflected based on gold rates which in turn plays a major role in a shared market with the
greatest impact on the value of every country’s currency, as well as their economic growth
which tend to depend on the value of gold.
With the data rates of both gold and silver for the last 50 years i.e. from(1968 -to 2018).
The statistical analysis on the metal kept on rising and falling over the mentioned years.
Gold Rates: ($)
1.13,1.35,2.10,3.86,5.41,5.91,4.51,5.0,6.98,13.33,21.93,18.96,16.53,12.78,14.69,12.29,10.36,

13.66,14.63,15.56,13.19,12.82,12.42,11.86,12.19,12.60,12.61,12.67,10.84,9.68,9.89,9.25,9.3
4,10.34,12.33,13.88,14.0,20.03,23.87,30.14,32.30,42.32,55.16,56.15,53.29,42.68,38.77,43.0
8,40.10,41.51
N=50

Silver:
0.05,0.051,0.060,0.094,0.16,0.15,0.15,0.15,0.19,0.63,0.85,0.42,0.39,0.29,0.26,0.20,0.17,0.24,
0.21,0.19,0.20,0.19,0.16,0.13,0.12,0.14,0.17,0.18,0.18,0.16,0.20,0.17,0.16,0.14,0.15,0.16,0.2
2,0.26,0.41,0.45,0.56,0.84,1.26,1.04,0.96,0.65,0.52,0.61,0.54,0.53
N=50
Implying every value shows the price of 1gram of the two metals in US dollars from the
year 1968 to 2018, rounding it to 50 years’ and in comparison, too. Although, US dollar is
globally used as well as recognized.
The below are additional pictorial graphs of values analyzed as per the markets.

Gold prices for period from 1968 - 2018

Silver prices for period from 1968 – 2018

STATISTICAL ANALYSIS OF THE PRECIOUS METALS

MEAN:

Mean of gold: 18.4056

Mean of silver: 0.3273

MEDIAN:
Median of gold: 12.8

Median of silver: 0.195

MODE:

Mode of gold: 1.13

Mode of silver: 0.16

QUARTILE:

Quartile of gold:
0% 25% 50% 75% 100%

1, 13 10 12.80 21, 45 56.15

Quartile of silver:
0% 25% 50% 75% 100%
0.05 0.16 0.195 0.4425 1.26

RANGE:
Range of gold: 1.13 56.15

Range of silver: 0.05 1.26

INTER QUARTILE RANGE:

IQR of gold: 11.425

IQR of silver: 0.2825

VARIANCE:

Variance of gold: 213.5533

Variance of silver: 0.07683617

STANDARD DEVIATION:

Standard deviation of gold: 14.61346

Standard deviation of silver: 0.2771934

SKEWNESS:

For skewnes, I installed a

package (“e1071”)

Skewness of gold: 1.21145

Skewness of silver: 1.543298

KURTOSIS:

Kurtosis of gold: 0.3317121

Kurtosis of silver: 1.713453

BOX PLOT:

BOX PLOT OF GOLD

BOX PLOT OF SILVER

HISTOGRAM:
 :

PLOT OF GOLD:
PLOT OF SILVER:
SUMMARY:

Conclusively, the overall perspective summary of the statistical report on the price for gold

increased drastically over the 50-year period. As such there has been a rapid increase in

prices in the last 20 years.

While silver prices were found to be slow although steady in terms of its price as compared
to gold.
Hypothesis of gold:
The value of gold lies in between the critical values 1.959964 - 1.959964 making 0.05 the
level of significance. Prudently, one would recommend the null hypothesis rejection since
the set of price on gold is not different from the onset of 0.05 level of significance which
would be the mean of gold from the new set
which differ from our set.