London, 22 September 2010

Today, the price of gold reached a record high, coming in at US$1,295 an ounce. While the price of gold continues to rise, the silver price remains less than half of its historic high and has outperformed gold over the past 18 months; ETF Securities' Physical Silver (PHAG) ETC has outperformed ETF Securities' Physical Gold (PHAU) ETC by 42 percentage points between 31 December 2008 and 17 September 2010.

Commenting, Nick Brooks, Head of Research and Investment Strategy at ETF Securities, said: "Gold and silver prices have tended to follow each other over time. Despite substantial outperformance of silver relative to gold in 2009, the silver price continues to trade at a discount compared to gold in relation to its long run (50 year) average.

Historically, the silver price has often acted as a geared play on gold prices, so when the gold price is rising, often the silver price outperforms. However, when the gold price falls, silver can fall sharply. Silver had also tended to be more sensitive to the business cycle due to its heavy use in industry, whereas gold has traditionally been viewed as a store of value and alternative to paper currency, and has therefore been less sensitive to business cycle fluctuations."

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