Silver surges to best performing commodity

20-Apr (FT) — An explosive two-week rally has made silver the best performing commodity this year, fuelled by a surge in interest from hedge funds and Chinese traders after it fell to an uncommonly large discount to gold.

Silver has now outpaced gold in terms of gains as the metal has rallied 14 per cent in 11 days to $17.05 a troy ounce.

This year it is up 23 per cent compared with 2.3 per cent for the FTSE All-World index of global shares.

A wave of concentrated catch-up buying saw silver jump more than 4 per cent on Tuesday after it lagged behind gold’s upward move this year. Silver is often traded along with gold and the ratio between the two is a closely watched metric.

Before the recent rally, the gold-silver ratio hit its highest level in more than seven years in late February. It is now back down close to its historical level of 70.

Gold prices have risen 18 per cent this year on delayed expectation for a Fed rate rise.


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