Britain’s blue chip index attained its highest level in the decade as the prices of silver and gold lose their bearings. The FTSE 100 index of London’s largest blue chip index rallied to a decade high earlier this week, underscoring a revival of confidence for city bankers and stock pickers.

Bullish investors pushed their indexes near the 6,755.63 points, its highest closing stats for nearly 10 years. The closely monitored share index which reflects how sought after the stocks are is now poised to beat the December 1999 record of 6,930 points as investors rally their nod from good company balance sheets to stack into shares.

This week’s rise was led by a 4.5 % surge by the Royal Bank of Scotland taxpayer shares followed by an improvement from a leading market analyst. Britain’s surge is attributed from a much broader global equity market rally that has added an estimated £2.3 trillion to the total market cap of market companies around the world in the last month.

The index of the largest 600 companies in Europe (Stoxx Europe 600) made additional gains putting it at the top of the list since June 2008. Similar indices also broke its 2007 record such as Germany’s blue chip Dax index.

The bullish stock response led to other assets like gold and silver off the pace as investors switch into stocks. Earlier this week, precious metals which already fell 17 % and 25 % respectively this year slid to a new low before reversing at the midpoint to close slightly higher.

Increasing market liquidity spearheaded by central banks’ colossal money printing operations has aided to cut the magnetism of both bond yields and gold forcing investors to rotate to a much higher yielding equities.

Along with a sturdy dividend yield paid out by vigilant management teams – the FTSE will hopefully make a comeback with 54.32 % to investors since the past decade peak if dividends are included and that market watchers can correctly predict that the bull run will continue to extend.

However there are many skeptics are unsure of an extension at this time since the market has further upside. Although some measures of investor sentiment now show that it has risen but is not unduly concerned about it.

On the other hand, a macro research outfit sounded a warning speculating that a 10 % fall in the US and UK equity and a 15 % dip in European and Japanese equity will mostly likely happen in the coming weeks.

The US and S&P 500 which gained 17 % since the beginning of the year closed its session down 0.07 % at 1,666.29. The index repetitively broke records over the past few weeks hitting record highs in 10 of the last 12 days of trading.