Silver is hitting its sweet spot.
While viewed as a haven from market turmoil — just like pricier sister gold — silver also has wide industrial uses in products like solar panels and electronics. That means the metal’s drawing both investors worried about rising virus cases and those focused on rosier indicators, from optimism over China’s recovery and promising vaccine news, to the landmark stimulus package clinched by Europe’s leaders.
Read more about what’s moving global markets today
Spot silver powered through $20 an ounce Tuesday and is trading near a four-year high. The cheaper metal has outpaced gold’s own gains this month, and holdings in silver-backed exchange-traded funds have increased for 12 straight weeks to a record.
“Silver is now leading the charge,” said Stephen Innes, chief market strategist at AxiCorp Ltd. The metal is following the same trajectory as during the global financial crisis, he said. Back then, prices dropped during the worst of the crisis before rallying to fresh records near $50 by 2011.