-- Posted 2 June, 2009 | | Discuss This Article - Comments:

Commodities across the board rallied significantly yesterday on signs of economic recovery that heralded the return of risk appetite. The upshot of this meant that the beleaguered dollar had another punishing day and this weakness pushed gold to $988.50. The next level of resistance is $999, with the $1000 mark likely to be breached soon thereafter. Gold's monthly close of $978.90 is bullish and shows that its current rally is sustainable. Silver touched $15.63 and has had its largest monthly increase since 1987 - up 27% for the month of May.

A recent report by a British scientist, Valerie Edward Jones, says the use of silver in healthcare and hygiene is increasing, frequently because of a shortage of new antibiotics. The review found advances in technology, particularly nanotechnology, are allowing scientists to increasingly apply silver's benefits in more areas. "In simple terms, silver ions are highly effective and eliminate bacteria rapidly," said Edwards-Jones. She also said that for the first time ever in Europe, silver is being used in a new deodorant. The silver ions neutralise the bacteria that cause body odor, stopping it before it begins.

Silver is a finite resource that was already being seen as a cheaper alternative to the safe haven aspects of gold and these latest reports should encourage more investors to further diversify their portfolios, not just with gold but with the extremely versatile silver.

Bullion Services Team