Precious metals show best returns

Precious metals were the best performing asset class in the first half of 2011, according to a report out today, but average investment returns tumbled.

Commercial property was a close second, the latest biannual Assetwatch study by Lloyds TSB Scotland found, although all nine asset classes covered produced gains for investors. Precious metals were up 4.9 per cent in the six months to the end of June, with commercial property up 3.7 per cent and international equities ranked third, returning 3.2 per cent.

But the 2.3 per cent average return from the nine categories, which also include UK and international shares and bonds, compared with 13 per cent in the same period last year as global markets faltered.