Find Out Why Silver Made A Bigger Quarter-End Splash Than Gold Directly At Precious-Metal.org

April 5, 2010 - Gold made a big quarter-ending splash but silver made an even bigger splash. Silver’s $17.89 overran the previous day’s $17.01 by $0.88. Silver’s new numbers fueled further expectations for another run duplicating the 2000-2009 run.

It will be recalled that in 2000 the price of silver was $4.95 at the end of 2009 it settled at $16.99, over three times more.

Silver’s surge also calls to mind David Morgan’s (founder of www. Silver-investor.com) recent market read citing $17.50 as the “upper limit” for the price of silver for the time being. “I don’t see us going much above the $17.50 level.”

He added, however, that “If silver takes out $17.50, it could run up to $19.”

Morgan also put silver in the lead among the best performing assets over the next decade, even “outperforming gold over the next few months on a percentage basis.”

George Gero, vice president of global futures RBC Wealth Management, forecast $20 as the final number for silver at the end of 2010. Gero observed the increasing daily volume of silver futures.

Silver, like gold, is a precious metal but, unlike gold, it is also an industrial metal with diverse industrial uses. It is estimated that industries have a high 95% share in the consumption of silver. Currently there is an imbalance of consumption and production of silver and the imbalance is growing bigger as industrial consumption grows bigger and faster than the output of mines.

Supply and demand imbalance is one is one of the major factors that forces that the price of silver to go up. We can expect this imbalance to be more disparate through the coming years. When this becomes difficult to sustain, we can expect another bull run for silver. 

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Danny Burns

Senior Staff Writer - Precious-Metal.org