Outspoken commodities bull, Jim Rogers has recently been taking a shine to silver. While, he isn't abandoning his gold positions just yet, he said that depressed metals such as silver and palladium represent some of the best buys right now. Silver is currently trading at nearly 60-70% below its all time highs. Silver reached its high of $50.35 in 1980.
Analysts predict that silver prices could reach $21 to $22 by the end of the year. From an investment point of view, silver has performed pretty well during the past 20 years. Poor man's gold has risen in price from a low of around $3.50 in the early '90s to the current highs of around $18. This has given investors an annual return of about 9%.
Aside from being a possible value play in relation to gold, silver has a lot going for it in the industrial world. The metal has several uses in automotive sector and electronics manufacturing. Silver may get a boost from new uses in renewable energy. New technologies in solar cells and silver-oxide smart grid batteries could use demand for the mineral skyrocket. Currently accounting for 70% of the world's total industrial use, consumption in China is on the rise.
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