Silver prices exploded in the third quarter of 2010, rising from under $20 per ounce in the summer to over $30 in December 2010. The silver market is significantly smaller than the gold market in total size, and is therefore more prone to larger swings in price as was seen in 2010.

Generally, silver prices tend to align with the growth of the industrial sector, which accounts for approximately 50 percent of silver demand. While investment buying typically comprises a comparatively smaller portion of total silver demand, it would appear now that investors are increasingly turning to the metal as a store of value and safe haven asset. As such, silver appears to be trading more as a monetary metal, with drivers closer to those of gold, than those of an industrial metal. However, silver has demonstrated much more volatility than gold, outperforming on the upside and subsequently overcorrecting on the downside.