Silver futures for immediate delivery rose .24 percent to $18.90 per troy ounce today, beating out gold futures and raising some expectations that silver could continue to perform well through this year and on to the next.
The past month has seen silver outperform gold by about 1 percent, even as gold repeatedly hit record high prices.
Bloomberg covered a report from Eugen Weinberg, an analyst of the German Commerzbank AG, which predicted a possible rise in silver to $23 per ounce next year. The analyst called silver “gold’s little brother” and pointed out that the gold/silver ratio has risen to unusually high levels this year, with about 65 ounces of silver buying one of gold.
“We expect this ratio to swing back, leading to potential for silver,” said Weinberg.
Silver differs from gold in its greater industrial and manufacturing utility. This makes it more sensitive to economic conditions – as seen yesterday when it spiked on speculation that China would import more. However, its industrial use insulates it somewhat from the speculation and volatility of a commodity like gold, which is held mainly for investment purposes.
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