May 25, 2010 - For the first time silver failed to keep pace today with bullish gold, giving away 64 cents (3.6%) to drop from $17.89 to $17.25 an ounce.
Gold, on the other hand, maintained its course though with a modest 13.20 cents (1.2%) an ounce from Friday finally closing on Monday at $1196.70.
Gold and silver had their finest hour this year on Wednesday May 12th, driven by persistent worries about the fiscal crisis in the euro-zone. Gold punctuated a two-day surge with a $1243.10 performance that eclipsed by $16.70 (1.36%) the previous all-time high of $1226.40 set on December 3, 2009. Riding on the coattails of gold, silver soared past the $19 mark earlier than expected. It closed at $19.27, surpassing the decade-ending $16.99 by $2.28 (13.42%). Gold’s continued rise Monday this week is noteworthy. The yellow metal continued its rise while stocks worldwide continue to fall in spite of the massive 750 billion euros rescue fund approved three Sundays ago for troubled European Union member-countries and the release of the first installment of the rescue funds for the maturing loans of Greece.
Gold had often rode in tandem. In the past decade, gold chalked up price increase of over 400%, and silver over 300%.
Silver prices started at $4.95 in 2000 and rose to $16.99 an ounce in 2009. Over the same period, gold finished at $1100 an ounce from $270.
Analysts opined that silver had not yet caught the attention it deserves. I recent months, silver had significantly outpaced gold. It had risen by about 30% since early February and gold 17%.
Chintan Karnani of Insignia Consultant, India, opined that “silver will continue to follow gold moves in the short term and medium term but in the long turn, silver will move on its own.”
Jonathan Monroe
Senior Staff Writer - Gold-Bullion.org
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