Silver Breaks $20 - Up Around 35% This Year
Source: Mineweb.com (3/4/08)
...it has only really been this year that the realisation seemed to have hit the markets that silver was now perhaps underpriced in relation to its higher priced cousin...
To a large extent, silver is being dragged up by gold as the yellow metal achieves new records, but gold this year has risen by only 17 percent - admittedly a pretty spectacular performance in only a couple of months in its own right. With the US dollar striking new lows, gold is likely to remain strong as it powers towards the anticipated $1000 an ounce, but again it is silver which may well continue to benefit more in percentage increase terms.
But why has silver done so well in comparison with its senior precious metals partner? We did point out last year that when gold started its pretty meteoric rise in late August that silver seemed to be being left behind and could well provide the better investment when the markets adjusted to this. As it happened this took a fair amount of time to strike home. All the publicity was directed at the gold price and silver literally was being left behind. It was following gold but at a more muted level, and it has only really been this year that the realisation seemed to have hit the markets that silver was now perhaps underpriced in relation to its higher priced cousin.