Silver outperforms gold

Silver rose 3.7 percent to $31.67 an ounce, also up for a third consecutive week.

Technical buying accelerated after COMEX March silver futures broke above stiff resistance at $30.50 an ounce, said David Meger, director of metals trading at futures brokerage Vision Financial Markets..

Meger said physical silver demand has picked up in recent weeks, boosted by retailers chasing better price momentum.

Indeed, U.S. Mint data showed that sales of silver American Eagles totaled 5.3 million ounces on Friday, on pace to surpass its record high of 6.4 million ounces set in January 2011.

Dealers said silver coin sales were brisk even after considering January sales are usually higher than other months due to a consumer preference for new year’s edition.

Gold’s ratio to silver – the number of silver ounces needed to buy an ounce of gold – slipped to two-month low on Friday at 52 as silver prices outperformed gold.

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 21 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