Silver Price Vs. Gold Price

Why Silver price appreciates better than Gold price?

There has been wide disparity in percentage of appreciation of gold price and silver price for the past one year.  The silver price movement graph shows steep rise whereas gold price movement is gradual.

I have been forecasting most profitable investment options through my blogs occasionally.  On June 2010, I wrote in my blog about prospects of investment in silver and how it was a better option than investment in gold. Read my original blog on the subject
 http://rightmyearnest.blogspot.com/2010/06/investment-shift-to-silver.html.
 I repeated the call again in September 2010 when silver price reached $23 level from $19 during June at the time of my initial appeal.  Today as you know it has reached $37 and in a short time from now is likely to reach $50 level.

What is the future of silver?

Compare it with appreciation in gold price.  Gold price was at $1250 level that time.  With all focus concentrated on its investment gold could reach $1420 only; say a 20% appreciation But appreciation in the case of silver price is 100% from June 2010 level. The rally is likely to continue in view of the persistent demand for industrial purpose from electronic industry in China and Japan.  About 75% of the silver produced is being used for this purpose. In view of developments in nanotechnology the demand for silver may further increase.

What are the risks in silver?

High cost of gold makes it vulnerable to risks.  Moreover, the handling cost also is more. If the uncertainties prevailing in world economy are settled, there is every chance the price may come down.  But price of silver which is purely demand based chances for depreciation is next to impossible.  Under the circumstances, I may once again call upon all prudent material investors to shift their focus from gold to silver as early as possible to reap the befit of this reality. For easy access to procurement of the metal I give links enabling you purchase it instantly