Missed out on gold rally? Try out silver, which has gained 73%

Silver prices, which have outshone gold this year, could continue to outperform the yellow metal in the near to medium-term, say analysts.

- Waheed Abbas [e-mail]

Gold rally has gained over 52 per cent year-to-date, rising from $2,659 per ounce at the end of last year to $4,017.18 on October 11.

Silver rose from $28.78 per ounce last year to $50 over the weekend, registering a massive increase of over 73 per cent year-to-date.

According to George Pavel, general manager for the Middle East at Naga.com, the outlook for silver in the near to midterm could remain bullish due to the market’s fundamentals.

“The market is facing a persistent structural supply deficit for multiple years, with demand expected to outstrip supply. Demand is driven by both industrial use in green energy and technology and renewed safe-haven investment interest,” he said.

Michael Brown, senior research strategist at Pepperstone, said the outlook for silver remains positive, with demand for precious metals still very solid across the complex, even if the initial move above $50 per ounce inspired a bout of profit-taking.

Will silver continue gains?