Gold and silver prices surged to new records Tuesday as the dollar weakened against major currencies, continuing a trend that has left Americans scrambling for alternatives to traditional investments such as stocks and money market accounts.
Silver touched $22 an ounce Tuesday, the highest since 1980. Silver has surged 36 percent this year from less than $9 when the financial crisis began in 2008. Gold, which has increased 19 percent in 2010, jumped to $1,313 an ounce, the highest ever recorded.
With stocks in the dumps and government deficits spiraling, Americans are increasingly turning their attention to silver and other precious metals.
The high price of gold, which has also more than doubled in price in the past two years, has prompted investors to load up on cheaper silver. Silver has gained 21 percent in price versus gold this year.
"Some people are worried about the currency debasement and have done some research about the fundamentals of silver and fundamentals of gold and silver looks like a better deal," said David Morgan of the Morgan Report.
Silver's rise can also be traced to its industrial uses in products such as jewelry, mobile phone components and batteries.
