This Friday, the 26th, silver surpassed the symbolic mark of 75 dollars per ounce for the first time, in a context in which precious and industrial metals reach unprecedented levels at the end of the year, driven by economic and geopolitical uncertainty.
Silver today peaked at $75.1515 per ounce (31.1 g). Gold also peaked at $4531.04 per ounce.
Since January, gold has risen nearly 70% and silver more than 150%, annual performances unprecedented since 1979.
These metals are considered safe haven assets, that is, long-term safe assets, purchased mainly by central banks or individuals to guarantee positions in periods of uncertainty.
Gold and silver are taking advantage of the geopolitical risk between the United States and Venezuela, highlighted by Washington’s decision to mobilize an important military device in the Caribbean in recent weeks, implementing a naval blockade against Caracas, which it accuses of financing “narco-terrorism”.
The dollar and US Treasury bonds, normally competing safe haven values with precious metals, have, on the other hand, lost their attractiveness this year.
The uncertainty related to Donald Trump’s Presidency contributed largely to this weakening, recently reinforced by the prospect of further cuts in interest rates by the American Federal Reserve (Fed, central bank), which make the dollar less interesting.
Investors are still concerned about the public debt of large countries and a possible bubble in the artificial intelligence sector.
All these uncertainties are driving up the price of gold and silver, but also of other metals, such as platinum, and many consider it wise to diversify their portfolios, notes John Plassard, analyst at Cité Gestion Private Bank, cited by AFP. “The metal returns to being insurance, rather than a simple speculative asset,” he added.