Another silver rally in the making

Can silver repeat the rally of last year ? very likely, many observers believe after the white metal’s more than twenty percent gain in the first month of the year.

Demand increase is key to silver’s growth in 2012 and the demand is catching up especially in industrial applications including in catalytic converters in automobiles,analysts said.

They added that all precious metals started re-establishing long positions after the fourth quarter of last year, when there was a severe decline as the euro dropped, equities weakened and commodities fell across the board.

Silver is leading all commodities this year, up more than 23 per cent. Gold, in comparison, has gained 12 per cent.Gold and silver gained nearly 146 percent in the last five years.

Renewed investor demand in silver at the start of this year is a good sign, observers said. However they added that number of trade in silver would remain modest as it trades at values significantly lower than gold.

Silver trade volume is unlikely to climb this year though silver is more abundant than gold as it is used in far more applications in modern world, analysts said

They also warned investors about the high volatility involved in silver trade in short term and wants them to bet silver in long terms.

Silver fell from a high of $50 last Aprilto $26 close to year-end, but since the New Year, the market has recovered well. – BullionStreet

Tags: price of silver, Silver, silver analysis, silver futures, silver futures prices, silver news, silver price, silver price 2012, silver price forecast, silver prices, silver spot, spot silver

Posted by Silver Guru on Feb 8 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry