Silver Strengthens as Gold Weakens

Mark Ellis — Tue, 25 Aug 2009 02:37:46 +0000

Most of the time, the price of silver tends to vary in accordance with how gold prices are doing, but 2009 has had silver gaining value even as the price of gold falters in its growth. While silver is up 3.1 cents in the New York Mercantile Exchange, landing at $14.191 per ounce, gold has dropped $10.90 and is now valued at $942.30 per ounce.

Throughout 2009, silver has increased in value by 26 percent, while gold has only risen a moderate 6 percent. Silver has historically been referred to as “poor man’s gold,” purchased at times when the dollar is weak or when inflation may occur and sold when these factors eventually disappear.

While silver does play the part of a precious metal sometimes, it is more often used as an industrial metal, with practical uses in electronics and batteries. Because of this, increases in the value of silver have also been attributed to strength within the industrial sector of the economy, which could end up signaling some level of economic recovery.

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Silver Strengthens as Gold Weakens