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Silver prices outshine gold to hit seven-year high

July 23, 2020. Summarized by summa-bot.

A set of ABC Bullion one-kilogram silver bars are displayed at the ABC Refinery smelter in Sydney, New South Wales, Australia, on Thursday, July 2, 2020. Western investors piling into gold in the pandemic are more than making up for a collapse in demand for physical metal from traditional retail buyers in China and India, helping push prices to an eight-year high. Photographer: David Gray/Bloomberg

Silver hits a seven-year high as jittery investors flock to precious metals

London (CNN Business)Silver prices have rocketed to their highest level in seven years this week as a falling US dollar and record low interest rates send investors rushing for other safe havens.

It's up 28% this year.

It was last trading at $1,882. 34, a 24% rise year-to-date.

A weaker dollar is also making it cheaper for foreign investors to buy gold and silver, while rock bottom interest rates make other typical safe haven investments, such as US Treasuries, look less attractive.

Silver is a key component in electric vehicles and increased demand for renewable energy solutions is likely contributing to its price rise, too.

Half of all demand for silver comes from industrial buyers.

Often dubbed the poor man's precious metal, is it now silver's time in the limelight?

Mining stocks that give exposure to silver, such as London-listed Fresnillo (FNLPF), have given investors bumper returns so far this year.

New York-listed Endeavor Silver (EXK), Great Panther (GPL) and Fortuna Silver Mines (FSM) have also seen big gains this year.

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