A sustained climb in the spot price of precious metals has reached an all-time record for gold while silver has pushed to a seven-year high.

The previous record price for an ounce of gold, established at $1,921.17 in 2011, was eclipsed July 27 when the price topped at $1,946.90. The metal pushed through the $1,950 mark the following day, continuing the upward trend.

Silver prices closed on July 27 at $24.48 (still far from its all-time record around $50).

Global factors that serve as economic indicators continue to concern investors, who seek safe harbor by shifting money to gold and other precious metal investments.

Factors of concern to investors include speculation about the ongoing COVID-19 pandemic and its effects on economic recovery. As cases increase in the U.S., leaders contemplate aid packages, and economic recovery seems more tenuous. A weak dollar, continued lower interest rates and a perceived strain in U.S.-China relations are further concerns. These factors carry a great level of uncertainty, which is usually an indication that metal prices will continue to climb.

“With the current interest rates and negative yielding bonds, the upcoming election, our relationship with China and COVID-19, I do not see gold’s momentum slowing down. How far can it go? That’s difficult to say — but it will definitely continue. Needless to say, it’s a great time to own the yellow metal and silver,” said Terry Hanlon, president of Dillon Gage Metals.

Gold prices’ low point for the calendar year, $1,476 on March 19, coincided with the start of pandemic-related measures being employed in many countries. From there, the price has realized a steady climb, topping the $1,800 mark three weeks before establishing the new record.

Investment firms are also noting increased activity at precious metals depository vaults. “All three depositories in Texas, Delaware and Canada have experienced a dramatic increase in storage accounts,” Hanlon continued. “Vault storage is used by individual investors, institutional investors, IRA custodians and the like. When depository vaults are full, you can almost bet that the yellow metals supply is limited indicating a bullish market.”

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