Silver outperforming gold

Silver futures SI2H +0.26% jumped 3.8% on Friday and added another 1.9% Monday but, despite the fact that the metal’s rally far outpaces recent gains in gold, the recent price action shouldn’t come as a big surprise.

At last check, year to date, silver futures were up around 16%, while gold futures GC2G -0.17% have gained about 7%.

A report from FMX Connect on Friday attributed that day’s rally in silver to a comment made by a UBS analyst that stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients. Read FMX Connect report.

But that shouldn’t be new news. On Jan. 18, Sprott Physical Silver Trust N PSLV 0.00% said it was offering 23 million of its units at a 9.3% discount to the close on Jan. 17 in a move to raise funds to acquire physical silver bullion.

That move followed Sprott Asset Management LP’s plans in November to offer as much as $1.5 billion worth of units through a shelf registration. Read a story on silver’s volatile outlook. – MarketWatch

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

Posted by Silver Guru on Jan 24 2012. Filed under Silver prices. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry