COMEX silver futures were trading around $15.85 per ounce Friday.
In a growing economy, silver may also look more attractive since the metal is used in many industrial applications, such as electronics and solar power.
“There are better opportunities in those cyclically exposed precious metals than gold,” Arnold said. “Buoyance in China is more beneficial for the cyclical precious metals such as silver and platinum and that sort of rising demand is going to be more beneficial.”
Additionally, platinum is another industrial precious metal used automotive catalytic converters. Platinum is trading around $1,095.9 per ounce, and the ETFS Physical Platinum Shares (NYSEArca: PPLT) has remained relatively weak so far this year.
“We don’t think platinum deserves to trade below gold for a sustained period,” UBS strategist Edel Tully said in the article. “That nearly everyone is bearish platinum right now should be a warning in itself that we may be nearing an inflection point.”
For more information on precious metals, visit our precious metals category.
Max Chen contributed to this article.