What drives silver prices

As a long-term investment, silver has delivered even more stellar returns than gold. The return on silver over three, ten and twenty years` time frame has been higher than gold. Yet, silver lagged gold in the fiscal year ended March 2012, managing only a 0.1% gain while gold vaulted 33% in rupee terms. The slowdown in silver price gains recently is explained by three factors. For one, silver`s fundamentals are linked more closely to growth in the global economy because it is being used increasingly as an industrial metal.

Continuation of the article: MyIris.com, 17 April 2012