Investors Play Precious Metals as Market Insurance Policy
April 20, 2011 at 06:00 AM EDT
Investors have been flocking to precious metals to protect from looming inflation and a weak outlook for the U.S. dollar. The trend has turned investments related to gold, silver and other precious metals into some of the hottest plays of the past year. The demand for "safe-haven" metals investments continues pushing prices to new highs: Gold is up 7.5% so far this year after a 30% rise in 2010, and hit a record high of $1,476.21 an ounce Monday. Silver has climbed about 40% this year, after an 83% surge in 2010, and hit a 31-year high this week. And Platinum is up 1.4% this year following a 20% jump last year. While gold was the popular topic of 2010, silver has been the star this year, getting more investor interest as a cheaper alternative to the yellow metal.