Precious or Industrial Metal?-Part Two

Silver Investing News reports silver prices taking the direction of gold during this year.

Increased inflation fears and dollar woes have pushed many investors into safe haven assets, so silver has taken much of its price direction from gold this year; however, as industrial production levels pick up the white metal will undoubtedly outpace gold.

Industrial use made up over 50 per cent of demand in 2008 and that figure will likely increase as economies recover worldwide. Silver is already benefitting from optimism in the industrial sector and rallying base metal prices leading some analysts to point out the correlation between recent silver price moves and the upward direction of the copper price.