Hot Commodity Silver Outpaces Gold as Buying Gains Momentum

Gold’s record-setting rally may have captured the headlines this year, but it’s silver that’s running harder and faster as the less glamorous metal benefits from robust financial and industrial demand.

Silver has soared by more than a quarter this year, outpacing gold and making it one of the year’s best-performing major commodities. Yet in relative terms, silver is still cheap. It currently takes about 80 ounces of silver to buy 1 ounce of gold, compared with the 20-year average of 68.

Spot silver rose as much as 3.3% to $30.55 an ounce as of 9:21 a.m. New York time on Friday, its highest since February 2013. Gold prices were up as much as 1.2% to $2,405.18.

The two metals move largely in tandem as both offer similar macro- and currency-hedging properties. With gold hitting a record on central-bank buying, retail interest in China, and a resurgence in bets lower US interest rates are on the way, silver’s gone along for the ride. Although there’s been scant interest from investors in silver-backed exchange-traded funds, physical sales have picked up, including at Singapore-based dealer Silver Bullion Pte.