LONDON (Commodity Online): It seems bullion analysts are now going for silver as they believe that silver will outperform gold in 2010.

A report in I-Net Bridge, said if silver continues its upward trend, it could easily outperform gold during 2010. While the price of gold increased by more than 30% last year, silver prices increased by more than 60%.

Many analysts said it is important for investors to include some silver as well as gold in their precious metals portfolio. In fact, at current levels silver looks extremely undervalued and it may trade as high as $25 per ounce in 2010.

Analysts said silver will appreciate 45% this year, while they expect gold to increase by just 30%.

One problem with silver is that most of the investors are clueless when it comes to silver.

The argument made by many uninformed equity analysts is that the demand for silver will disappear due to the declining demand for silver in the photographic industry, which is nothing but a myth. Silver has many different industrial applications. It is also used in the manufacture of jewellery and bullion coins.

And, more recently there was unprecedented investment demand for the metal via the silver exchange traded funds.

Silver will also benefit from many new industrial applications, in particular silver-zinc batteries, solar panels, water and even medical applications.