Precious Metals Still Shine Brtightest

Source:

"PMs offered significantly higher returns for investors; cash sits at bank-rate lows."

Banking Times, Gill Montia

Precious metals continue to shine brightest among investors amid renewed uncertainty over the outlook for the global economy.

According to new research by Lloyds TSB, precious metals were the best-performing asset class over the first half of 2011, providing investors with a return of 4.9%.

Silver was the top performer with prices increasing by 14% (gold +6.6%) as demand for industrial uses heightened.

Commercial property recorded the second-highest return (3.7%) albeit from a low base, followed by international equities (3.2%).

With the official bank rate still at a record low, holding cash delivered the lowest return in the first six months of the year, at 0.3%.

Lloyds TSB economist, Suren Thiru, comments: "Precious metals continue to provide the best returns for investors against a backdrop of continued anxiety over the prospects for global economic growth and concerns over Eurozone sovereign debt risk and high inflation."

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