LONDON (Commodity Online): In the melee over gold, silver is being ignored by several investors. This fact has now come to light and many people are slowly showing interest in putting their money in silver which is giving big returns for the past few months.

The silver spot price had touched $17.80 an ounce before dropping to $17.10 on Monday. According to analysts, this was a long-awaited correction in silver prices.

Silver has been tracking gold’s rally on an ever-weakening dollar. And the downward pressure on dollar is expected to continue as long as the Fed keeps up its low-interest rate.

Signs of global economic recovery are also having an effect on the dollar and precious metals prices and that trend is sure to continue.

While gold is up 21 per cent this year, silver has soared 56 per cent. However, despite outperforming gold, silver still remains undervalued compared to gold. When gold first hit $1,000 an ounce, silver was trading above $20 compared to the $17 range now.

Investment demand for silver is robust. Silver’s industrial status and its close ties to copper will keep the metal on the rise.  Silver has also benefited from rising industrial demand along with copper, which reached a 13-month high on Monday.

Strong appetite from Asia is helping to support prices of copper and its other base metal cousins.

Many analysts are forecasting further dollar declines and continued optimism over global economic recovery, which will in turn boost precious metal and base metal prices. Of course, silver stands to benefit immensely from this scenario, given its dual nature as both precious and industrial commodity.

All commodity prices will rise, gold, silver, copper and even cotton, said Jim Rogers speaking Friday at the Global Economic Revival and Chinese Capital Market Summit Forum.

After the recent sharp price rises, silver may go up to $20 an ounce in 2010.

Silver mining stocks are benefiting from rising silver spot prices.

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