Who says silver is second best? Price streaks ahead 572% in the past decade - beating even gold as the top-performing commodity
Silver
has zoomed up in value by 572 per cent over the past decade -
outstripping the performance of all other top commodities, including
gold.
Gold, which saw a 428
per cent price jump, was the second-best performer in a league table
compiled by Lloyds TSB Private Banking.
The top duo were followed by tin (414 per cent), copper (406 per cent) and lead (344 per cent).
But
there is a sting in the tail, because commodity prices have suffered an
overall decline of 13 per cent in the past year due to fears of a
global economic slump - and precious and base metals have fared worst
with falls of 19 per cent in both sectors.
Some 15 of the 20 commodities tracked by Lloyds TSB have at least doubled in value since 2002, according to Lloyds TSB.
Silver
proved the winner over 10 years because it is seen as a safe haven
investment and is in high demand for industrial uses, it explained.
Commodity values in general soared
due to the relatively weak U.S. dollar - in which most are priced - and
strong economic growth in emerging markets as they become more
industrialised and middle class.
The
161 per cent rise in overall commodity prices over 10 years dwarfs the
35 per cent return investors got from UK shares during the same period.
However,
the sharp correction in commodity values in the past year highlights
the challenges faced by those who invest in this volatile asset class.
Just six out of the commodities monitored by Lloyds TSB have posted an increase in value over the past 12 months.
The
best performer over one year was soya with a 24 per cent rise. It only
ranks around the middle of the 10-year league table, but supply problems
in the U.S. have recently pushed up prices.
Wheat,
corn and crude oil have also seen prices rise over one year - but
coffee has almost halved in value due to changes in trading conditions.
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