Gold hits new all-time high at $1,569, silver closes at $48 an ounce

It was another record breaking week for precious metals. Gold closed at a fresh all-time high of $1,569 on Friday, catching up a little with silver’s spectacular bound above $50 on Monday.

Silver suffered an immediate beating but bounced back by the end of the week to flirt again with its all-time high level of $50 an ounce. Traders reported violent swings in the silver price but this is typical as a commodity approaches its all-time high.

$50 no ceiling

Given the weakness of the US dollar and the Fed commitment to lower interest rates it can only be a matter of time before silver breaks above this level, ArabianMoney editor Peter Cooper told the Dubai Eye radio station on Thursday night.

He said silver is far from peaking at $50 as no other commodity is trading at anything like the price it sold for 31 years ago. Silver is so cheap it is a farce for a commodity used in so many industrial processes and now increasingly as a currency again.

Media silence

Silver is also still hardly mentioned in the media. Gold still gets the headlines, just look above this article. And yet silver prices have outperformed gold by a wide margin this year. Perhaps silver has gotten a bit ahead of the game and gold will now catch up.

The next issue of the ArabianMoney will feature an article explaining why silver is only in phase two of the investment cycle, and not yet in the exponential growth phase (click here to sign-up). Investors still have their greatest gains to come during this stage.