Has silver actually outperformed gold this year?
“Silver has outperformed gold this year as investors flocked to precious metals in the economic downturn and silver producers can look forward to good times ahead, the head of Coeur d'Alene Mines said on Tuesday.
‘In the wake of this (financial) hurricane, this is a new golden age for us,’ Dennis Wheeler, the silver producers' chairman, president and chief executive officer told the Denver Gold Forum industry gathering.
Not only were investors buying silver as a safe haven against the recession, but new demand from electronic appliance makers for the metal was likely to strain global supplies, he said.
‘We continue to see a deficit of about 100 million ounces for silver this year and it is continuing.’
On a day when silver rose past $17 an ounce, Wheeler noted that the gold price had risen some 15 percent this year to around $1,000 an ounce, but silver was up 50 percent.
‘The number one performer this year has been silver. Silver has outperformed gold three-to-one,’ said Wheeler, whose company has silver and gold projects in Bolivia, Mexico, Chile, Argentina, Australia and the United States.
‘We are seeing the beginnings of a new sustainable global silver market. Clearly investors were driving the market this year.’
He said that as the economy got back on its feet, silver demand was seen increasing, especially after ‘upbeat’ outlooks from computer and appliance makers who use the metal for batteries.”