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Silver steals the spotlight from gold

Friday, September 7th

Silver has been a top performer among major metals this year, and it looks set to continue to steal the spotlight from gold, with investment and industrial demand for the white metal expected to rise.

“We could see a spectacular performance in silver” during the rest of the year, said Julian Phillips, a South Africa-based editor at SilverForecaster.com. “Silver, in addition to its demand [and] supply disjoint, will attract huge investment demand.”

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A third installment of QE will likely have an even greater impact and both metals will “retest, if not surpass, 2011 highs,” added Bennett. “While silver trades more volatile than gold, when the fundamentals for the safe-haven trade are in place, it performs extremely well and is affordable for any investor seeking refuge from the equity and bond markets or looking to hedge the dollar.”

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Silver’s lofty gain this year may be one that’s built to last, but also one that’s raised concerns over the risk of a steep pullback.

The rally in the precious-metals sector finally getting under way is “likely to be a good one,” with a record high in gold above $2,000 this year “a realistic target,” said James Turk, founder and chairman of GoldMoney.

For silver, although it comes with greater risk because it is not yet seen as money, the upside potential is even greater, he commented. “It is still largely seen as an industrial commodity and with global economic activity weak, people are not paying attention to what is actually happening in silver.”

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