This Other Precious Metal Is Beating Gold This Year. Should You Invest?

Core Insights - Gold prices have increased by 65% from the beginning of the year through October 20, marking the strongest performance since 1979, while silver has outperformed with a 78% increase, reaching an all-time high [1][2] Group 1: Market Dynamics - Central banks have been major buyers of gold, purchasing over 1,000 tons annually for the past three years, driven by geopolitical tensions and a shift away from the dollar [3][4] - A survey by the World Gold Council indicates that 43% of central banks plan to increase their gold reserves, with 95% expecting overall gold reserves to rise in the next year [4] Group 2: Silver Demand Drivers - Silver's price surge is attributed to its critical role in various industries, including electronics, renewable energy, and medical devices, with demand expected to rise as the global economy grows [6][8] - There is consistent global demand for silver in jewelry, particularly in China and India, and mints regularly purchase silver for coin production [7][8] - The current market is experiencing a "silver squeeze," where demand is outpacing supply, suggesting that fundamental drivers for silver demand will persist despite recent price pullbacks [8]