As I was showing you on Wednesday, silver is on fire. It looks like a much needed correction in gold and silver may be at hand, but long-term silver is cheap. -Lou
Hi-ho silver!
White metal looks to outpace gold again, thanks to its industrial uses
NEW YORK (MarketWatch) -- Silver, which has topped gold and platinum to become the fastest rising precious metal this year, has a chance to keep outperforming thanks to its double use as both an inflation hedge and industrial material, analysts are forecasting.
But with higher returns come greater risks. Silver has proved much more volatile than gold, partly because fewer people trade the white metal than gold.
But with higher returns come greater risks. Silver has proved much more volatile than gold, partly because fewer people trade the white metal than gold.
If "prices of precious metals turn higher across the board, silver will tend to move up faster," said Neil Meader, research director at London-based precious metals consultancy GFMS.
"If all the prices come off, you will see silver prices collapse much faster," he said.
The London fixing, a global benchmark for silver's spot trading, have rallied nearly 50% this year to near $16 an ounce, the highest level in 10 months, as investors piled into coins, bars, and silver exchange-traded funds such as iShare Silver Trust. Holdings in iShare Silver hit a record high this week.
The year-to-date gain in silver easily outpaced gold's 12% advance and has also outrun platinum's 30% increase.
Silver futures traded on the Comex division of the New York Mercantile Exchange, another benchmark, surged 27% last month, the biggest monthly gain in 22 years. It's the second-best performer in 26 major commodities tracked by Merrill Lynch's MLCX commodity index, topped only by gasoline futures.
Read More:
Posts
No comments:
Post a Comment