Thursday, February 11, 2010

Silver or Gold for 2010?

Gold or Silver?

While silver is different from gold in that it isn't only a safety investment but an industrial one as well, under normal conditions it does tend to move in tandem with it, although no always in a straight line.

According to Asian investment firm Hang Seng Financial, they believe silver could very well outperform gold over the next several years by investing in the precious metal physically, through mining companies, ETFs and other means.

I don't think we have to make that distinction so much, as more than likely gold and silver over the next several years will both perform well, with quite possibly gold being the winner in general, although it would depend on how you invest in gold to determine that for each individual investor.

Now long term I think silver could break away form gold when it is largely looked upon for its growing industrial use and demand, but that could take a little while, and the slow (if any) economic recovery over the next several years could easily keep it from doing so.

For 2010, again depending on how you choose to invest in the two precious metals, gold will probably outperform silver, at least in futures trading.

Gold or Silver?

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