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Silver May Outperform Gold in 2014
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Silver May Outperform Gold in 2014, Miami Beach, FL – January 17, 2014

If 2013 was a bad year for gold, it was a great deal worse for silver. At the end of the year, the gold price crossed the finishing line down 28%, but the price for silver struggled morel. Starting at around $30.00 an oz. at the beginning of January, it limped home at $19.50 as 2013 came to a close – with a loss of 36%. Yet, many gurus are predicting that the popularity of silver will bounce quicker than that of gold. A lot of this outcome is contingent on the future strength of the US business recovery as well as an increase in industrial demand. 

Silver to Benefit From Wider Demand

Improving prospects for both gold and silver are in the cards, in spite of a rough 2013. However the wide selection of buyers for silver make it a much more likely of the two to thrive in 2014. This is because of the fact that, whereas the primary source of demand for gold is as an investment in the shape of jewelry or coins, silver has many other further applications. Silver is utilized in assorted electronic gadgets like solar batteries, cell phones, circuit boards, and plasma TVs. These business uses account for almost 1/2 the requirement for silver.

Gold Costly Matched against Silver

Another account for silver’s favor is that the cost of gold is comparatively high compared with that of silver. In 2013, the proportion of gold to silver was roughly 52:1, meaning it took 52 ounces of silver to buy one oz of gold. Currently, the ratio stands about 62:1.

How Will the Economy Affect Silver


A strengthening US economy could help spark commercial demand for silver for the use of household goods both here and abroad. As people begin opening their wallets once again, we could see an uptick in rare metal costs all around.

Industrial silver

Nonetheless US industrial recovery would possibly not be all good news for silver. A stronger economy will provide more scope for the Fed Reserve to cut back on its purchasing of bonds. The purchasing of less bonds by the Fed Reserve will have a unfavorable effect on the price of valuable metals thanks to the likelihood of increased rates on bonds. Better returns from bonds increase the possibility price of holding silver and gold which in turn makes them less enticing for investors; however, the versatility of silver will help shore up its value.
On the other end of the scale, stagnant expansion in the USA job market and economy will also have its effects on rare metals. We saw this in early 2014 as silver costs lifted on the reports of a slightly less than expedient US job report. The price for silver went up by 2.6% on Friday following this revelation while the effect on the gold price was more muted with a rise of just 1.2%.
This would suggest the Fed might be slower to control its bond purchases than formerly anticipated. Backers are also taking heart in the more strong support for silver, which has stayed above the $19 mark.
All these factors point to a bigger potential for returns from silver than from gold. The heavier losses for silver in 2013 set the scene for a larger bounce in 2014. If the market turns sour, losses may probably be cushioned by buoyant industrial demand and investor support. A stagnant economic recovery could also prove constructive for this flexible metal as financiers seek a protected haven from inflation. Gold might be a contender but silver could well be the stellar performer of 2014.

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