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In Commodities Silver Prices Look Ready To Resume Acceleration

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The Red-Headed Stepchild of Commodities Silver Prices Are In Hot Pursuit Of Gold

Everybody loves gold, even as commodities silver prices plot a comeback. Nowadays, gold is so ubiquitous that the closing spot price is routinely quoted in ordinary newscasts aimed at the average citizen who only has gold in his teeth, or in his wife’s jewelry box. That same person would be surprised to know how much silver lurking around his house.

In addition to its function as a store of value, or as an ornamental metal, silver also has many industrial applications. This added utility is why silver and gold prices sometimes diverge, even if they are frequently coming out of the exact same hole in the ground. At those times when industrial demand is raging, silver can outperform its illustrious cousin. During recessions, where industrial demand for silver slows down, its price can fall behind. It is this basic underlying difference in purpose that can bring superior profits to the savvy silver investor.

For Many Who Trade In Commodities Silver Prices Are Expected To Closely Track That Of Gold

Put another way, most investors look at the daily spot price for gold, and simply presume that silver has moved up or down in rough proportion to that of the more prominently-known metal. Because this is not the case as often as common knowledge would have you believe, great opportunities for contrarian plays exist in the spread of commodities silver prices.

One simply has to drill deeper into the industrial output reports than the other, more careless traders are likely to trouble themselves over. This gives some players a range of options that gold cannot offer.  Future demand tips off investors as to whether commodities silver prices are likely to be turbocharged for an advance beyond gold, or dragged down by industrial malaise to the point where it becomes an attractive short play against the herd instinct.

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