May have to google "silver surges" to read this article>
By Javier Blas
Published: September 6 2010 12:00 | Last updated: September 6 2010 23:05
Silver prices hovered near a two-and-half year high as investors continued to build positions in the metal, often seen as the poor man’s equivalent of gold.
The grey precious metal is also benefiting from robust industrial demand as the global manufacturing cycle gains momentum again after a summer lull.
In London, spot silver hit $19.91 a troy ounce on Monday, up 0.4 per cent. The metal is trading just under the $19.92 intraday peak it hit on Friday, the highest since March 2008.
“We continue to like silver; seeing it playing a role as the poor man’s gold but also benefiting when risk-on appetite returns,” said Edel Tully, precious metals strategist at UBS in London. “But while we are fans, we recommend waiting for a price pullback – perhaps on the next round of economic numbers,” she added.
The metal is attracting hedge funds and other short-term investors. Suki Cooper, precious metals analyst at Barclays Capital in London, said that speculative bets on rising silver prices on the New York-based Comex market last week hit their highest level since December.
The growing interest from speculators in silver contrasts with last year, when investors dumped it. Silver suffered in 2009 as the metal is used in industrial applications, such as in batteries, glass and electronics. Companies cut buying sharply due to the economic crisis
