By Jeremy Holcombe
Contributing writer for Goldco Direct and End the Lie

With a 74% gain over 2011, silver outperformed all other precious metals last year in terms of average annual price increases, boosted largely by investment demand.

This also helped the yellow metal because it has such a high-demand for industrial use as well.

The average annual silver price of $35.12 per ounce in 2011 was enough to set a new price record.

This new price record was a 74% gain over the 2010 average annual price of $20.19 per ounce.

If you look back through the last decade you can see that silver’s average annual price has increased an astounding 703% since 2001.

This is great news for silver in 2012, as many have predicted silver spiking up to around $50 per ounce, which would be a record.

You can’t see the outperformance by looking at per ounce price alone, you also have to look at average annual price.

Silver outperformed all other precious metals in terms of average annual price increases. Palladium recorded a 39% gain last year, while gold was 28% higher and platinum rose 7% over 2010 data, this according to the Silver Institute.

In a report that was released by the institute last November, Thompson Reuters GFMS forecasted that world silver investment would reach $10 billion last year, easily surpassing the previous record of $6 billion in silver investment set in 2010.

“Silver’s strong price performance last year owed much to the strength in investment demand, as well as growth in industrial demand, much of which is relatively price insensitive in the short term,” said Michael DiRienzo, executive director of the Silver Institute.

It looks like he was right on par with what happened in 2011. This is even more good news for silver in 2012, as he is someone who is predicting huge price gains for silver this year.

If you haven’t already, I would recommend using this opportunity to purchase some silver before it just gets more expensive.

The best ways to invest in silver are through purchasing silver bars and silver coins. You can use the lower price now to gain momentum going into 2012, and hopefully build and supplement your portfolio to a point where even if something happens in the economy you will be covered.

Big things are ahead for silver in 2012. Don’t get caught on the outside looking in. Sit down with you financial adviser and discuss ways to invest in silver that will allow you to benefit the most.

[Editor’s note: I must also emphasize the importance of so-called “junk” silver which can be purchased in bulk at incredibly low prices. This would be much easier to deal with in a situation where you had to barter for goods, as chances are you’re not going to be trading for something worth an entire silver bar. Then again, if you want to invest large sums into hard assets, you’re likely going to have to purchase bars simply due to special constraints. That being said, I would still recommend that you augment your portfolio with some assets of a slightly lower value which could be used to trade for food or other necessities.]

The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct. It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct. Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.

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