Gold and silver exchange traded funds are rallying in the wake of the second bailout for Greece. Fears of additional currency debasement and more financial aid from central banks to stem Europe’s debt crisis could keep a bid under precious metal ETFs this year.

Gold ETFs rose nearly 2% on Tuesday while silver funds added about 3%. [List of Silver ETFs]

Silver is also leading the yellow metal so far in 2012. For example, iShares Silver Trust (NYSEArca: SLV) has gained 20% year to date, compared with a 10% rise for SPDR Gold Shares (NYSEArca: GLD).

Silver ETFs are more volatile than gold but could be poised to outperform on a combination of continued easing policies from central banks and an improving global economy, since silver has industrial uses. Some technical traders watch the gold/silver ratio to get a sense for how bullish investors are on precious metals overall.

Additionally, silver ETFs are trying to break above the 200-day simple moving average for the first time since September 2011.

Silver prices outperformed gold in 2010 and early 2011 as silver shot to $50 an ounce.

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