Gold prices climbed above $3,500 per ounce for the first time on Tuesday, while silver rose past $40, marking its highest level since 2011.
The surge reflects a year of strong gains for both metals. Gold has advanced about 33% since January, when it traded near $2,640, and silver has gained roughly 38%.
Gold and silver’s rise stands in contrast to more modest returns in stocks and bonds this year.
Strategic Wealth Preservation, a Cayman Islands-based precious metals dealer, points to several factors behind the rally, including heightened demand for safe-haven assets amid global political and economic uncertainty, expectations that the U.S. Federal Reserve could begin cutting interest rates this month, and steady central bank purchases by countries such as China, India, Turkey and Poland. Industrial demand has also supported silver, which is used in solar panels, electric vehicles and electronics.
“Gold and silver continue to prove why they remain a cornerstone of global finance,” said John Le Cuirot, head of sales at Strategic Wealth Preservation. He noted that silver may hold more relative upside, given the wide gap between its price and gold’s. The gold-to-silver ratio now stands near 88 to 1, above its long-term historical range.
While past performance is no guarantee of future results, the firm said precious metals remain an attractive option for investors seeking diversification in uncertain times.
