LONDON(BullionStreet) : Silver got off to a colourful start for 2012 as the white metal gained nearly twenty percent in January compared to gold's 10.91 percent.

At close of trading on the last day of the month, silver hit $33.22 an ounce, supported by a dip in dollar index, the best first month of the year performance in thirty years.

Silver outperformed with a price rise of 10.3 per cent week-on-week, followed by platinum (6 per cent) and gold (4.4 per cent).

Analysts said a decisive break over $33.70 would signal an upside extension towards $35.70 range highs. The medium-term outlook is neutral.

A weaker dollar and surging US coin sales have helped to lift silver prices. They added that industrial demand from solar panels to batteries to medical applications will continue to boost silver prices.

Demand for coins and small and large bars also going to help the white metal this year while supply shortages continued to support it, they added.