Gold and silver bounce back
The two main precious metals have recovered from their January dips, with gold up 27% over the last 12 months, and silver doubling in price.
The two main precious metals have recovered from their January dips. Gold has reached a seven-week high above $1,400 an ounce, marking a 27% increase over the last 12 months. But silver has doubled in a year, including a 14% jump last week. It has reached $33 an ounce, its highest level since early 1980. Like gold, silver has always been a safe haven from turmoil and currency debasement. Being cheaper, it's often known as "poor man's gold" and tends to "hang on gold's coat-tails", says Jamie Chisholm in the FT.
Silver has had an additional fillip because it is also an industrial metal. Industry accounts for over half of overall demand. As the silver market is about a tenth the size of the gold market, it's a lot more volatile, magnifying gold's move in either direction.
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