Silver steals the spotlight from gold - Commodities Corner - MarketWatch
Silver has been a top performer among
major metals this year, and it looks set to continue to steal the
spotlight from gold, with investment and industrial demand for the white
metal expected to rise.
“We could see a spectacular performance in silver”
during the rest of the year, said Julian Phillips, a South Africa-based
editor at SilverForecaster.com. “Silver, in addition to its demand [and]
supply disjoint, will attract huge investment demand.”
Already, silver futures prices /quotes/zigman/699341SIZ2+2.67% trade above $32.60 an ounce, up about 18% for the quarter to date and up 17% from the end of 2011. Gold /quotes/zigman/699338GCZ2+1.84%, at more than $1,700 an ounce, has seen a quarter-to-date gain of 6% and less than 9% rise for the year.
“Investors see precious metals like silver and gold as hedges against
the debasement of paper currencies,” said Elliott Orsillo, co-founder
and portfolio manager at Season Investments LLC.
Much of the recent move in both silver and gold has been a
reaction to rising expectations for more monetary easing on the part of
the European Central Bank and the U.S. Federal Reserve, which tend to
devalue currencies.
Orsillo warned that the market might have gotten a little ahead of
itself regarding those expectations. “We could see a pullback and a
better entry point [for silver] in the next couple of weeks,” he said,
noting that silver tends to be more of a “high-beta play,” much more
volatile than gold.....
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