Silver in Largest One-day Increase Since 1979

With equities taking a beating, and investors concerned about the safety of banks and financial institutions, they are abandoning stocks, and in some cases even money-market funds, for commodities.

Silver rose by $1.158 for December delivery today, the largest one-day increase since December 31, 1979. It reached $11.675 an ounce. Spot silver grew by 15 percent to end at $12.

To add to the jitters of the equity market, the oldest money-market fund in the U.S. - Reserve Primary Fund - has exposed investors to potential losses for the first time in 14 years. Much of that was the result of having to write off losses of $785 million in debt they had issued to Lehman.

The three-month rate for U.S. Treasury bills also dropped to the lowest level in 54 years, plunging as low as 0.0304 percent. That's the worst since 1954.