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Haramve:  CNBC: Gold just hit a fresh record high — but some say silver is set to overtake


Silver is set to outshine gold, even as prices of both precious metals soar in the midst of a faltering global economy and a weakening U.S. dollar.

This year, gold prices have shot to record highs not seen since September 2011. Investors have been fleeing to “safe haven” assets as the pandemic shows no signs of abating.

Gold prices hit a new record close of $2,021 per ounce overnight — settling above $2,000 for the first time. It was last trading at $2,020.30. Geopolitical unrest overnight likely added to the spike. The blasts in Beirut, which killed dozens and wounded thousands, “probably (added) to the shine of Gold above $2020,” said a note from Mizuho Bank.

Spot gold prices have spiked more than 32% so far this year and are on track for the best year since 1979. Meanwhile, silver priceshave also followed suit, shooting up more than 30% year to date.

Michael Hsueh, a commodities and foreign exchange strategist at Deutsche Bank, told CNBC he expects silver to outperform gold.

Analysts pointed out that the the world economy is set to bounce back, and that will drive up industrial consumption. That’s set to increase the demand for silver, which has many industrial uses.

“Silver … has a much higher industrial component to it. So, much higher component of silver supply demand in industrial consumption. And in an environment where we see the global economy recovering, that’s another reason to buy silver,” Hsueh told CNBC on Tuesday.

Analysts at Citi also said in a note last month that the rebound in manufacturing activity is pushing silver prices higher compared to gold.