A new report by Lloyds TSB has revealed precious metals to be best performing asset class in 2011 so far.
In the first half of 2011 precious metals, gold, silver and platinum, gave a return of 4.9 percent say Lloyds TSB.
Interestingly, despite all eyes, and money, seemingly cast upon gold, silver was actually the best performing asset of the three, with its prices rising by an incredible 14 percent.
Suren Thiru, economist at Lloyds TSB, said: ‘Precious metals continue to provide the best returns for investors against a backdrop of continued anxiety over the prospects for global economic growth and concerns over Eurozone sovereign debt risk and high inflation. Precious metals have benefited from lower interest rates over recent years as well as their position as a hedge against inflation and financial market uncertainty.”
As well as being a safe haven investment, silver is also in high demand within various industries, which has further ensured the strong rise in price.
Out of the three metals platinum saw the biggest prices decrease a drop of around 1.9 per cent over the last six months – however this drop did not dent the overall march of precious metals and together they still outperformed all other asset classes.