Silver tends to be more stable, partly because it tends to rise with economic growth and, at the same time, it is a safe haven asset in more difficult times, Agrawal says. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions achieve financial freedom through our website, podcasts, books, newspaper columns, radio programs and premium investment services. Silver is technically more affordable than gold. For that reason, gold has more value as a reserve asset and is often the subject of Gold IRA investment reviews. The government and banks also store gold, but silver is rarely stored.
The idea is that both gold and silver can be good portfolio diversifiers, especially if they are considered natural complements to each other, which basically means that the resilience of gold can help balance the increasing volatility of silver. Regardless of the performance of silver in the coming months, the metal remains a strategic asset for many investors seeking to minimize risk, diversify their portfolio and safeguard their assets in times of increased volatility. Once again, silver surpassed gold by a significant margin during the Great Financial Crisis, with the wave of metal purchases in China and the EU debt crisis. While gold will most likely continue to account for most of the press releases, silver is still a reliable precious metal that is much more affordable for investors.
Gold is used in the conductive, electronic and thermal industries, while silver is used in the electronics, medicines, thermal technology and manufacturing sectors. Because of the volatility of silver, it may be more attractive than gold if you want to speculate on short-term fluctuations. While short-term fluctuations in gold prices receive much attention, gold is relatively stable as a long-term investment. The historical chart below shows that silver price volatility can sometimes be two or even three times greater than that of gold on any given day.
For the past 10 years, the price of silver has been much more volatile than that of gold both upwards and downwards. While many investors are looking for gold and silver in physical form, such as ingots or coins, investing in mining stocks is usually a better option. When the economy is down and inflation is high, investors tend to rush to look for safe assets such as gold and silver. Gold may be more attractive to those seeking a more stable and secure investment that is less exposed to market crashes, is a reliable long-term hedge against inflation and economic turmoil, and is easier to store.
Although I agree with most of what you said, you are wrong about 1 comment, the comment that says that silver is the most conductive of all the elements is false, it is second only to gold, gold is the most conductive element on Earth, but silver is definitely the second, I just wanted to let you know, great article. Even in good times, many investors keep a small percentage of their assets invested in gold or silver as a portfolio diversification strategy. The general consensus among market observers, researchers and experts in precious metals is that the long-term forecast for silver is positive.