Gold prices hit a new record Wednesday and silver prices surged as investors bought up the precious metal to hedge against inflation.
Gold for December delivery rose $7.40 to settle at $1,347.7 an ounce Wednesday, breaking the record it hit the day before when it settled at $1,340.30. Silver prices also surged, with December silver rising 30.6 cents to settle at $23.043 an ounce.
Silver’s surge reflected that metal’s increasing popularity as a reserve investment, said Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments, LP.
Silver used to be valued more for industrial uses, being a chief ingredient for electronic devices like iPods and computers. But nervous investors are pulling out of currency and buying up silver because of its status as a precious metal.