Gold News

Silver Bullion a "Growing Preference" for Investors

BOTH GOLD and Silver Prices have benefited from the financial crisis and ensuing sovereign-debt concerns, says a new report from a much-followed bank analyst, but recent action shows "a growing preference" for silver amongst some investors.

Silver Bullion prices "have gained noticeably on gold this year," notes HSBC metals analyst James Steel in his latest Precious Metals Outlook.

This means that the ratio of gold to Silver Bullion prices per ounce – known as the Gold/Silver Ratio – has fallen from 1:63.5 in January 2010 to 1:56 by October, says Steel.

Amid a clear move to hard assets, led by precious metals, "This indicates a growing preference for silver over gold by some investors."

On the supply/demand fundamentals, silver mine supply is expected to continue rising, but jewelry demand "is recovering" from the slump of 2009, and industrial demand – which accounts for more than half of silver's annual off-take, according to HSBC – remains "price inelastic" and "will sustain physical silver demand."

Buying Silver today...? Cut out the middleman and get direct access to live, wholesale-market pricing, at BullionVault...

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals