Top Stories This Week: Gold Hits New Price Record, Silver Catching Up at 12 Year High

It was another record-setting week for gold, which neared the US$2,700 per ounce mark on Thursday (September 26). The new milestone came only six days after the metal closed above US$2,600 for the first time.

Gold is now up about 30 percent since January after starting the year at the US$2,040 level, putting it ahead of the S&P 500 (INDEXSP:.INX) and the Nasdaq Composite (INDEXNASDAQ:.IXIC).

Market participants have also been keeping a close eye on silver, which tends to lag behind gold and then outperform. While the white metal remains far from its all-time peak, this week it passed US$32.60 per ounce, marking a 12 year high.

Silver has risen approximately 37 percent in 2024, beating gold's increase.

Analysts have pointed to China's recent economic stimulus efforts as a catalyst for the metal. Announced on Tuesday (September 24), the package is the country's largest since the COVID-19 pandemic, and includes measures such as a cut to a key short-term interest rate and a reduction in the amount of money banks have to hold in reserve.

Although silver is a precious metal, it has important industrial uses as well, including in solar panels.

In a recent conversation, Brien Lundin of Gold Newsletter reminded investors that the silver price can be highly volatile. However, that can also be an opportunity — right now he thinks silver juniors offer the most torque on gold's historic price move. In his view, these companies are primed to take off like they did during the spring of 2020.

"The place to be right now I think for the most torque on this move in gold is really the silver junior mining stocks — the ones that have silver resources" — Brien Lundin, Gold Newsletter

Copper, which is known as a barometer for global economic health, was also on the rise this week after China's news. On Wednesday (September 25), it broke through US$10,000 per metric ton, a price not seen since May of this year.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

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