Silver prices are massively outshining gold, after it reached an 11-month high overnight
It seems all that glitters definitely isn't gold at the moment – investors are increasingly going berserk for silver.
After a none-too-impressive end to 2016, the metal has become increasingly sought-after – and last night, it reached an 11-month high.
This morning silver was up 1.6 per cent at $17.41 per troy ounce, according to Bloomberg. Meanwhile, Gold rose just 0.3 per cent, to $1,258.70 per troy ounce.
So far this year, silver has risen 23 per cent, while gold prices have risen 18 per cent – meaning silver's performance is outshining gold by quite a bit.
"To recap, silver has underperformed gold for most of the past year," said analysts at Capital Economics.
"As a result, the gold/silver price ratio reached 83x at the beginning of March, its highest level since the global recession, prompting some commentators to contend that a new crisis might be imminent.
"[But] the rally in the silver price over the past week has prompted the gold/silver ratio to fall back to around 74x ($1,250 vs $17.0). This rally was largely a catch-up with where silver 'should' have been given the previous recovery in the gold price.
"Admittedly, the surge in the silver price has also been flattered by the recent weakness in the US dollar, which may not be sustained if the Fed hikes interest rates sooner rather than later."