Silver prices are poised to outperform gold while moving dramatically higher later this year due to increasing investment demand, attendees of the world’s largest mining conference in Toronto were told earlier this week.

Speaking at the Prospectors and Developers of Canada Association (PDAC) annual convention, German investment fund manager Oliver Frank told a packed room at the “Accessing European Capital” forum that silver will likely end the year in the $25 range. This bold projection is almost double current silver prices.

A late 2009 surge in pent-up buying demand, particularly among Europeans, will prove to be the catalyst to silver reaching historic new highs, added the CEO of the Butzbach-based investment fund, Silver Capital AG.

He also believes that heightened global investment demand will also help gold to breach the hallowed $1,500 mark by year’s end – an appreciation of about 60% over its March ‘05 spot price close.

Both scenarios should stem from investors continuing to flock to gold and silver as “safe haven investments” in response to the onset of a hyper-inflation in the U.S. economy, Frank added.

Yet, he believes silver should enjoy a bigger percentage boost in value because physical demand has been consistently outstripping supply in recent years.

“In Europe -- Germany in particular -- everyone is trying to buy silver bars and coins, rather than gold, but there just isn’t the physical supply available. Global above-ground inventories are severely depleted. So, people these days just can’t get their hands on enough silver,” Frank said.

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