Will Silver Prices Continue Outpacing Gold Prices In 2017?
The precious metals sector is off to the races in the first six weeks of 2017, as returns in both gold and silver are beating the S&P 500. The silver market is the best performer – with nearly double the gains seen in gold. Here’s a quick look at the numbers: Silver +11% Gold +6% Copper +11% S&P 500 +4% Why are silver prices outperforming gold? Here are four reasons: 1. Silver is Both a Precious and an Industrial Metal This creates a dual demand base for the metal from both investors and from the manufacturing and industrial community. A less expensive cousin than gold, silver offers investors many of the same properties as gold including portfolio diversification and a hedge against in inflation as gold and silver typically trend in the same direction. Silver attracts nearly 50% of its demand from industrial buyers for use in electronics, autos, nanosilver applications, medical devices and solar panels. Both the electronics and solar panel industries that...