Silver prices have touched their highest level in six years, encouraged by low interest rates on other long-term assets as well as hopes that the industrial metal will be a winner in the “green recovery” promised by politicians.

The price of the metal rose as much as 6 per cent to $21.17 an ounce on Tuesday afternoon — the highest in intraday trading since July 2014 — before falling back slightly. The price is now more than 70 per cent above its March low, outpacing gold, which is up about 24 per cent to a nine-year high above $1,800 an ounce.

Silver, which has a lively following among retail investors, can enjoy explosive spurts when conditions are right. Catalysts typically include a pick-up in manufacturing demand and loose monetary policy, which increases its relative attraction as a store of value.