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18 September 2012 | Adam Leach
The price of silver has increased more than any other commodity over the past decade, with traders using it as a safe investment and manufacturers buying it up to use in their products.
Silver service for global investors, published by Lloyds TSB Private Banking, analysed the performance of 20 commodities over the past 10 years. It found the price of silver had increased from 457 cents/troy ounce in 2002 to 3,066 cents/troy ounce in 2012.
The metal has a variety of industrial applications, such as in the production of alloys and in control rods in nuclear reactors.
The study also discovered the majority of commodities examined have at least doubled their price over the last 10 years, if not multiple times. Gold, an even more popular investment for traders during times of economic uncertainty than silver, increased by 428 per cent, tin rose by 414 per cent and copper by 406 per cent. The only commodity that has dropped in value over the period is natural gas.
“Commodity prices have risen significantly over the past decade, partly reflecting strong demand from emerging markets over the period. Precious metals were the best performing commodity, with their perceived position as a safe haven investment reinforced over recent years with market turmoil,” said Ashish Misra, head of investment at Lloyds TSB Private Banking.
But while commodities have increased in price significantly over the past decade, in the past year price pressures have eased, falling by 13 per cent.