Clouds of uncertainty have a silver lining

SILVER has been the best performing commodity over the past decade, according to new research by the Lloyds TSB Private Banking Commodities Monitor.

Between 2002 and 2012, silver prices have risen by 572 per cent, significantly greater than any of the other commodities tracked, said the bank.

In addition to being perceived as a safe haven investment, high demand for industrial uses has also contributed to the strong rise in the price of silver.

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Three-quarters of the commodities tracked have at least doubled in value since 2002.

Gold, at 428 per cent, saw the second highest increase, followed by tin (414 per cent), copper (406 per cent) and lead (344 per cent).

Demand for gold from developing countries and investors looking to safeguard the value of their investments against a backdrop of economic uncertainty, rising oil prices and a weak US dollar has helped to sustain the price of gold at a high level.

Commodity prices, in general, have risen by 161 per cent over the past decade – more than four-and-a-half times the return from UK equities over the same period.