The gain followed silver's rise to a five-month high during trading Thursday.
Silver is the best performer for precious metals with its 16% increase in 2012, reported Reuters. This compares to gold's 8% percent rise.
For silver and gold, recent price increases have come from greater expectations for additional monetary easing from the European Central Bank and the U.S. Federal Reserve. On Thursday, the ECB added some fodder for this with its "outright monetary transaction" (OMT) program.
Next up for additional rising could come from the Federal Open Market Committee (FOMC) meeting next week. Look for a statement on Sept. 13 whether or not there will be plans for QE3.
With QE2 in 2011, silver rose to almost $50 an ounce.
Investment demand should also increase for the metal thanks to the effect of global monetary easing.
Brad Cooke, chairman and chief executive of Endeavour Silver Corp.said to MarketWatch that it will "take off again as we see more monetary inflation/economic stimulus programs by governments in America, Europe and China."
He sees silver hitting the $40 mark within the next months before it falls off again.
But for silver, there's more than just monetary easing affecting its prices.
Paul Mladjenovic, author of "Precious Metals Investing for Dummies," said to MarketWatch that "Oversized short positions in the silver futures, continued industrial demand in Asia, investment demand in the U.S. and the new applications for silver in areas such as solar power, [radio-frequency identification] technology and other new developments" are all a net positive for silver's price outlook."
He expects silver prices to "zigzag upward toward $100" an ounce by 2014.
Profit from Higher Silver Prices
First, there are exchange-traded funds (ETFs).
Global X Silver Miners ETF(NYSE: SIL): With its 35 producers and greater volatility than iShares Silvers Trust (NYSE: SLV), this ETF increased 3.42% on Friday to $22.99 by midday trading. Year-to-date, it's up 8.17% but in the last month, it's up 19.58%.
It has not only outpaced the market and SLV in the last months by a great margin, reported Investor's Business Daily, but in the past three months it has done so by a wide margin, jumping 18.40% as opposed to the 7.89% for the benchmark and for silver, 5.78%.
iShares Silvers Trust (NYSE: SLV) , though not up as much as SIL, is another option to invest in for silver. The granddaddy of silver ETFs, year-to-date, it's up 20.71%. After Thursday's ECB news, it rose 2.68% and in the last three months with silver's rise, it's up 17.02%.
But maybe stocks are more your investment of choice.
Paramount Gold & Silver Corp. (NYSE: PZG) recently released its new exploration results for its San Miguel Project. They were very favorable with deposits showing an increase in the ground. This included a 247% increase in silver.
Shares jumped on the news and year-to-date shares are up 29%.
Investors should get in now before the project picks up speed. The one-year price target for PZG is $10.40, a 278% premium to Thursday's close.
If a Fed announcement next week goes the way of additional easing, look for silver to continue its run.