This is the season of silver. A historic price rise in food products has seen almost all the essential commodities across the world shoot up in the last one year. The commodities boom has been led by the hottest among the commodities—gold and silver. While investors in gold have been on a winning spree in the last two years, it is silver that has shot to limelight in the last one year. Silver price has more than doubled in the last one year, leading to analysts to suggest that silver investment will outperform investment in gold and other commodities in 2011.
Last week, the buying spree in silver led to the white metal prices to jump to a 30-year high at $33.30 an ounce and in a continuation of the trend, spot silver prices were up further in early trade on Monday, making yet another high of $33.44/oz. Silver is now up 16.77 per cent in the past 30 days and according to traders, has more than doubled in the last one year, trading as it was at $16.24/oz on February 27, 2010.
Emerging economies of China and India are both heavy consumers of the metal, which is used in jewellery but also has its use as a raw material for industrial use.
Compared with this, gold prices have gone up by less than 6 per cent in the past 30 days and the yellow metal is up by just 26 per cent in the last one year. Gold’s rising price was fueled by a large market of technical buyers who have been purchasing on dips following the break past $1340 per troy ounce. “Silver, however, has breached its 30-year high price level, meaning there is little technical data a trader can base his/her trades on from reviewing the charts,” Holden added.
Last week, the buying spree in silver led to the white metal prices to jump to a 30-year high at $33.30 an ounce and in a continuation of the trend, spot silver prices were up further in early trade on Monday, making yet another high of $33.44/oz. Silver is now up 16.77 per cent in the past 30 days and according to traders, has more than doubled in the last one year, trading as it was at $16.24/oz on February 27, 2010.
Emerging economies of China and India are both heavy consumers of the metal, which is used in jewellery but also has its use as a raw material for industrial use.
Compared with this, gold prices have gone up by less than 6 per cent in the past 30 days and the yellow metal is up by just 26 per cent in the last one year. Gold’s rising price was fueled by a large market of technical buyers who have been purchasing on dips following the break past $1340 per troy ounce. “Silver, however, has breached its 30-year high price level, meaning there is little technical data a trader can base his/her trades on from reviewing the charts,” Holden added.
