You'd have to be hiding in a pretty dark cave not to know about the long series of record moves that goldhas made in recent weeks. What might surprise you, though, is that gold's performance over the past year, although definitely respectable, doesn't come close to what you could have earned from a host of lesser-followed commodities -- some of which seem unlikely suspects to have returns that dwarf those of precious metals.

Searching for confirmation
The reason that so many analysts are focused on commodities prices right now is that there are differing opinions about the significance of gold's rise. Some point to gold's historical status as money, arguing that it's in a unique position to benefit from the lack of confidence in fiat currenciesgenerally and the U.S. dollar in particular. With the Federal Reserve having increased its balance sheet by massive proportions, the federal government running unprecedented annual budget deficits, and indications that the rest of the world wants to move away from the dollar as a global reserve currency, these proponents argue that gold's rise stands on its own as just another indication that the dollar is ultimately doomed.

Others, however, look at gold's rise in a broader context of potential inflation. If the prices of allcommodities are on the rise, then it may be an indication that inflation is approaching. If gold is rising while other commodities are falling in value, however, gold's rise looks much more speculative and less founded in inflationary causes.

Reverse alchemy
As it happens, gold's rise of about 32% year-to-date doesn't come close to the best performance out there. Although medieval alchemists were always trying to change lead to gold, investors have found better opportunities from the duller metals so far this year:

Commodity

Year-to-Date Change

Lead

123.5%

Copper

122%

Zinc

80.6%

Unleaded Gasoline

75.9%

Silver

62.4%

Sugar

56.5%

Corn

(9.5%)

Wheat Continued...