x Abu Dhabi, UAEMonday 24 July 2017

Will gold lose its lustre as silver prepares to shine?

Gold has been the precious metal to buy in 2010 but now analysts predict that silver, copper and zinc might take the crown next year.

Gold has enjoyed a great year on the markets, but is it now the turn of less precious metals?
Gold has enjoyed a great year on the markets, but is it now the turn of less precious metals?

This year was golden, but analysts are pegging other metals to shine in the year ahead.

Gold's sustained rise, up more than 25 per cent in the last year to a high of $1431 per troy ounce earlier this month, was arguably the investment story of 2010.

But many analysts think less precious metals such as silver, copper and zinc may be in line for the crown next year.

The reasons behind the case for metals and other commodities are related to those that drove gold prices higher - weak currencies,

concern about inflation and the shift in economic growth from the West to emerging markets like China and India.

The top pick for next year is silver, which the experts anticipate will rise 37 per cent in the next 12 months. It closed earlier this week at just above $29.

Silver is "quite trendy and more speculative" than gold, said Pradeep Unni, a senior analyst with Richcomm Global Services in Dubai. He sees silver reaching between $35 to $38 in the next 12 months.

The flight among retail investors out of stocks and into assets considered safer can be seen in the volumes at the Dubai Gold and

Commodities Exchange, where trading has increased 33 per cent this year over 2009.

As for gold itself, Mr Unni sees it peaking at around $1450, up from its most recent close at $1381.

"The fundamental case is still very bullish," said Mr Unni.

Indeed, the median forecast in a Bloomberg survey of more than 100 international analysts and investors is for a 23 per cent gain to as high as $1,700.