Silver Breaks $20 - Up Around 35% This Year

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...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...

While gold and platinum have been generating the headlines as they attain new record levels, it will be the silver investors who will be feeling smug about the markets and their holdings. Silver is now up around 35 percent this year as it moved through the $20.00 mark today as investor interest continues to grow in this, the lowest cost entry into the precious metals market.

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.

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