In uncertain times, silver is considered a safe investment, a hedge against inflation and stocks. The use of silver as an industrial metal in many areas is also having an impact on price developments and prospects. Silver is cheaper than gold but is traded thinner, making it more volatile and illiquid. Silver may be volatile, but the precious metal, like its sister metal gold, is also seen as a safe haven.
Safe haven investments can protect investors during uncertain times, and given the high tensions, they could be a good choice for those who want to preserve their wealth during difficult times. Industrial demand for silver is higher compared to its largest competitor gold. Increased demand could classify silver as a risky investment due to potential economic downturns. Both silver and gold can serve as safe investments, but gold tends to have a better track record over long periods of time.
When considering silver versus gold as an investment strategy, it’s important to note that silver tends to fluctuate more in price than gold. The demand for gold and silver comes from various sources, with gold primarily being a fixed asset and silver being an industrial asset.
