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Silver outshines other investments in 2010

Silver outshines other investments in 2010

Category: Investments

Updated: 09/03/2011
First Published: 08/03/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Investors who placed their faith in silver during 2010 will have enjoyed gold-plated returns, the latest research has revealed.

Delivering a return of 42%, precious metals were the best performing asset class for the second successive year in 2010, according to Lloyds TSB.

Faced with continued uncertainty in the global economy, investors turned to the perceived investment safe havens of precious metals in an attempt to maintain the value of their investments.

However, it was silver which outperformed all other precious metals with its price rising by 80%, more than two and a half times the rise in the price of gold (29%) and four times the rise in the value of platinum (20%).

Silver's success has also carried forward into 2011, with prices rising by 9.3% in the first two months of the year.

Precious metals have recorded the highest return over the past decade (365%), followed by residential property (198%) and commodities (176%).

Suren Thiru, economist at Lloyds TSB, said it is unsurprising that precious metals were the top performing asset class in 2010.

"Investors looked to protect the value of their investments amid the renewed uncertainty over the global economic outlook including the debt concerns in the Eurozone and rising inflation.

"Silver continues to outshine gold and platinum with the relatively low value of silver providing greater scope for larger gains as well as offering investors similar benefits to those of gold."

"Going forward, the level of demand from emerging economies, particularly from China and India, is likely to remain an important determinant of many assets prices as well as the pace at which the global economic recovery continues."

Commodities have been the top performing asset class over the first two months of 2011, providing a return of 7.5%.

Within commodities, cotton has recorded the largest price gain since the start of the year with a rise of 38%.

A combination of increasing demand from Asia and greater supply side pressures after flooding affected some of the major cotton producing countries helped push the value of cotton higher.

If you're looking for exposure to gold, silver, commodities or any other type of investment, an equity ISA could be the ideal place to start.

A product such as the Baillie Gifford Investment Trust ISA should be able to provide you with access to all these investments and more.

If you're a little uncertain as to where to invest, Skipton Financial Services will be able to help.

They can compare over 1,100 ISAs and funds from over 60 providers – if you need help in choosing the right investment, call Skipton Financial Services free on 0800 731 5342

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.