Silver hits its highest mark since 1981

Silver stole the spotlight from gold Tuesday in the latest chapter of the global surge in precious metal prices.

Silver futures rose 4% and topped the $15-an-ounce level for the first time since 1981.

November futures in New York soared 59.5 cents to close at $15.33 an ounce.

Gold, by contrast, gained $12.70, or 1.6%, to close at $820.80 an ounce, its highest since 1980.

“Gold is consolidating above $800, and that’s driving silver higher,” said Alexander Zumpfe, a trader at Heraeus Metallhandels in Germany.

Precious metals have been on a tear the last two months. Demand has gotten a boost in part from the sinking U.S. dollar, which is driving investors and traders to look to other investments as a way to preserve wealth.

Gold and silver also are benefiting from inflation fears as oil prices continue to surge. The metals historically have played a role as a hedge against inflation.

Silver also is getting a boost from a miners’ strike in Peru, the world’s biggest producer of the metal. Some miners on Monday began their second national strike in six months after the government failed to meet demands on pensions, profit-sharing and rights for subcontracted workers.

Dow Jones Newswires reported the protest had drawn only 6% of unionized workers, but supply concerns persisted in the silver market given Peru’s importance as a producer.

Strikes at copper and zinc mines in Mexico owned by Grupo Mexico also continue to drag on, as a walkout by union workers enters its fourth month.

Gold and silver tend to move in the same direction. But silver has posted a bigger gain than gold since the end of 2005. Silver is up 72% since then, whereas gold is up 58%.