Mar 9, 2012

Gold vs Silver – Two Year Performance

Over the past couple of years precious metals proved to be the winning investment choice. Historically silver tend to be more volatile compared to the gold but this is compensated with higher return opportunities.

Since the beginning of the year gold has registered 8% gains compared to 20% rise for the silver. The charts compared over two year period show double price appreciation for silver compared to gold.  Silver gained 185% vs. 70% for the yellow metal if we consider the highest price ever reached for both. Although the sharp silver’s gain since the beginning of the year it is still trading in downtrend unlike the gold which has broken its resistance. 

Silver Ouperforming Gold For The Last Two Years

Fundamentally the same factors drive both metals prices. Currently the expectations for additional monetary stimulus are navigating the price. If they fade the precious metals price would reach its peak. As for now the outlook still remains bullish with interest rates expected to be lower of “extended period” of time at least till mid 2013.

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