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April 5, 2010 - Silver proved true to the optimism placed on it by investors when it posted in the quarter just ended a significant $0.88 increase over the previous day’s $17.01. It was not a bad increase of almost 5%, considering the struggle the precious metal had to make after losing its grip a month back.

It was not a surprise performance either, but it made investors look ahead for a silver lining at a far horizon.

“Silver should be the best performing asset in the commodity sector over the next decade,’ said David Morgan, founder of www.silver-invesor.com. “I expect silver to outperform gold over the next few months on a percentage basis.”

Analysts and investors have long complained that silver is the most undervalued of all commodities, more undervalued than gold and other strategic commodities as oil and uranium.

The complaint is well-founded, after all silver is backed by solid credentials and fundamentals. More than just a commodity, silver is an industrial and monetary metal. It has a long history as money and until today it is used as money by more countries than any other metal. Its industrial uses encompass a broad range of industries because of its excellent physical properties

Silver is a hedge fund like gold, sought after by investors. And like gold, it has given investors one of the safest havens against inflation. During the 2000-2009 decade of inflation, silver gave an investor a return of over 300%. In the 1970s the return was over 1,300%.

Demand for silver is constantly on the rise because of the continuing demand for the metal by industries. Industrial consumption is not small. The estimate is 95% of available silver is consumed by industries. There is today an estimate of only 300 million ounces of silver available for both investment and industrial use – down from 12 billion ounces estimated in 1900.

When the law of supply and demand comes into play, the market will find silver in its rightful place.

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info