MUMBAI (Commodity Online): And you thought gold is the only one metal which can assure you good returns and safety for your investment? But, there is another metal which has outperformed gold and ensured double returns for investors.

According to market analysts, silver prices have risen 109 per cent from its trough in 2008.

Silver has outdone gold with quarter-on-quarter returns rising by 18 per cent (in the third quarter of 2009) and 26.9 per cent on an annual basis.

Silver volumes have also risen at the Dubai Gold and Commodities Exchange (DGCX). The metal now records about 150 to 300 contracts traded on the exchange on a daily basis as opposed to three months earlier when silver traded a daily average of about 50 contracts. Each contract size of silver futures at DGCX comprises of 1000 troy ounces.

Analysts said for the immediate term silver will adopt a bearish trend but then there are brighter prospects in the longer term.

Investor demand for the metal has been unusually strong now. And industrial demand has also been strong. To add to that Chinese have developed a strong appetite for the metal and silver jewellery.

Silver showed a 109 per cent rise from last year’s slump. The appreciation was driven by a confluence of factors. After the sharp downturn, a stabilisation of the global economy has removed some of the immediate downward pressure on silver fabrication demand. More importantly investor demand has been strong.

Gold has benefited from higher gold prices and the weakening of dollar. Expansion of liquidity by major economies around the world has also helped the metal.

China that had earlier this year showed a decline in silver demand is now showing an uptrend.