According to the bank, precious metals - gold, platinum and silver - were the best performing asset class over the first half of 2011, providing a return of 4.9 per cent.
Silver was the precious metal that fared the best, significantly outperforming the other precious metals over the first half of 2011 with prices rising by 14 per cent – this is more than double the increase in gold prices (6.6 per cent).
In addition to its position as a safe haven investment, high demand for industrial uses has contributed to the strong rise in the price of silver.
In contrast, the price of platinum dropped 1.9 per cent in the last six months – but despite this, precious metals still beat other assets.
Despite the impressive rise in the price of silver, it has dipped drastically since its peak performance in April 2011, where it reached $49 per troy ounce – a rise of 59 per cent since the start of the year.
At the end of June, it was 28 per cent lower at $35 per troy ounce, amid a period of increased market volatility. But silver prices at the end of June are still 87 per cent higher than at the same point in 2010.
Looking over a ten year period, the price of silver has gone up a whopping 708%, gold 457% and platinum 209%.
In April 2011, gold prices smashed through to record highs of $1,532.91 an ounce and since then, gold prices have continued to climb and are now reaching even higher heights – it hit a new record high of $1,591 on Wednesday.
Gold vs shares vs property
The report also found that precious metals delivered the highest returns over the past ten years (36 per cent), closely followed by commodities (34 per cent) and UK shares (26 per cent).
Looking at the past ten years, precious metals have also provided the highest returns over a ten year period (416 per cent) with the fall in interest rates increasingly the opportunity cost of holding this asset.
Commodities (208 per cent) recorded the second biggest increase over the ten years to 2011, followed by residential property.
Suren Thiru, economist at Lloyds TSB, said: ‘Precious metals continue to provide the best returns for investors against a backdrop of continued anxiety over the prospects for global economic growth and convers over Eurozone sovereign debt risk and high inflation.
‘Precious metals have benefited from lower interest rates over recent years as well as their position as a hedge against inflation and financial market uncertainty.’
With bank rates still at record lows, holding cash delivered the lowest returns (0.3 per cent) over the first six months of the year.
Looking at commodities, coffee was the top performer over the first half of the year, with a price rise of 15 per cent. In contrast, hard wheat was the worst performing commodity, recording a price decline of - 18 per cent. For the latest updates PRESS CTR + D or visit Stock Market news Today
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