Silver has been outperforming a range of other commodities this year, currently fetching about 25 percent more than it did at the end of 2011. However, the question remains as to whether the precious metal will be able to sustain its recent rise, according to Mineweb.
Resource Investor reported that silver prices moved above the $36 per ounce mark for the first time since last September, as the metal benefited from a range of economic factors and predictions that gold may be entering a period of consolidation.
“Flow wise it has been a quiet day,” a Hong Kong bullion dealer told the news source on the morning of February 28. “Silver seems to be the most firm amongst all [the precious metals].”
Mineweb reported that investors have to look to the industrial and jewelry demand fundamentals for the metal, which may both benefit from a recent economic turnaround in several key places across the world.
Though the metal has fared more than 13 percent better than its yellow counterpart, the two commodities are usually closely linked when it comes to value. Although silver is currently doing better than gold, the former is usually much more volatile than the latter.
Mineweb reported that the metal will probably continue to rise in the short-term future, but the long-term increases that many silver bulls have predicted are likely to be too much of a resurgence for the commodity, given its volatile nature.
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