After this week's performance, we're getting more questions along these lines from Money Morning members: Will the price of silver go up in 2013?
Silver prices closed out a volatile week down $0.91, or 4.61% at $18.81. This week's loss continued silver's painful slump in 2013.
The white metal, down roughly 35% year-to-date, has even fared worse than gold, which is down about 20% in 2013. The serious slump in gold prices, tame inflation and record stock market rallies has taken some of the shine out of silver this year.
Since silver is more volatile than gold, it has underperformed – typical of a bear market.
Money Morning's Resource Specialist Peter Krauth explains, "Because the global silver market is relatively small, silver prices tend to be more volatile. But volatility works both ways, so when silver rises, its price can explode higher. That's exactly what happened in April 2011, when silver prices rose by 170% in the space of just seven months. That's why silver investors say investing in silver is like buying 'gold on steroids'."