Precious metals were the best performing asset class for the second successive year and the fourth time in the past five years, according to new research by Lloyds TSB.
Silver outperformed the other precious metals in 2010 with prices rising by 80%; more than two and a half times the increase in gold prices (29%@ asb 8.75%) and four times the rise in the value of platinum (20%).
In addition to its position as a safe haven investment, pressures on the supply side and high demand for industrial uses contributed to the strong rise in the price of silver. Silver continued to shine brightest into 2011 with prices rising by 9.3% over the first two months of the year.
In 2010, investors enjoyed a return of 42% from precious metals. Continued uncertainty over the prospects for the global economy contributed to the increase in the price of precious metals as investors sought to maintain the value of their investments.
All nine asset classes analyzed delivered positive returns over the past year with five asset classes delivering double-digit growth in 2010. Commodities (30.0%) achieved the second highest returns, followed by UK shares and Commercial property (both 14.5%).
While precious metals have also recorded the highest return over the past decade (365%), your mortgages are still likely to provide a solid investment as residential property has provided the second highest return (198%), with commodities third (at 176%).
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| Silver High Accelerating |
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| Silver is Climbing Up |
