Clash of the Titans: Weighing Gold and Silver

January 10, 2025 TruthUSA

Gold and silver have long been sought after as sources of value and luxury. And as investments, both have stood tall against high inflation and other periods of economic uncertainty.

However, there are some aspects of both precious metals that investors need to take into consideration before deciding on either one.

Economic Uncertainty

When it comes to weathering financial storms, gold has shined in the darkest markets.

During the recession of 1980–82, the S&P 500 Index plunged 27 percent while gold increased by 46 percent, according to futures brokerage RJOFutures. Fast forward to the dot.com crash of 2000–02, and gold rose 12 percent while the S&P 500 dipped 49 percent.

While silver has also seen monumental highs during tough times, it may not perform as consistently as gold.

During the 1980 recession, the price of silver reached a record high of around $49.45 per ounce. But during the Great Recession, silver prices swung from a high of around $16 per ounce in 2007 to a low of about $8 per ounce in 2008.

So that’s some historical perspective, but what about more recent times?

Gold and Silver Today

Even though the Federal Reserve’s hint of slowing down interest-rate cuts could move investor interest away from gold and into interest-yielding assets, the price of gold has remained strong.

The spot gold price has dropped to around $2,630 from its record high of about $2,790 per troy ounce in October 2024. But analysts at Goldman Sachs still expect gold to close out around $3,000 per ounce by mid-2026 amid larger purchases from central banks and geopolitical tension.

Silver put up a fight in 2024 as well. The spot price of silver gained 21.46 percent, reaching $28.90 per ounce from $23.65.

And while gold is recognized as a luxury and store of value, silver crosses these boxes and also has immense industrial applications. It’s a main component in electronics, solar panels, and electric vehicles.

In fact, industrial applications account for about 55 percent of global silver demand, according to research by Sprott, a global asset manager focusing on precious metals.

And ongoing geopolitical tension across the globe is also driving many investors to silver.

But there’s no rule suggesting gold and silver can’t both be part of your portfolio.

How to Invest in Gold and Silver

As they are both precious metals, you can invest in gold and silver in similar ways. For starters, there are gold and silver stocks. These are stock shares of companies involved in the mining and use of these precious metals.

Here are some of the top gold and silver stocks:

Iamgold Corp.
Endeavour Silver Corp.
Coeur Mining Inc.
New Gold Inc.
Kinross Gold Corp.

However, you can also invest in exchange-traded funds (ETFs) that track the prices of gold and silver. These ETFs invest in a variety of stocks and are professionally managed. This could make it a more tangible way for beginners to invest in these precious metals without having to do the heavy leg work of researching individual companies and the broader markets.

Here are some examples of ETFs that offer exposure to gold, silver, or both:

SPDR Gold Shares
iShares Gold Trust
iShares Silver Trust
SPDR Gold MiniShares Trust
abrdn Physical Precious Metals Basket Shares ETF

In addition, you can buy physical gold or silver. In this case, you would need to store and protect these precious metals on your own.

The Bottom Line

Gold and silver have both stood the test of time as valuable assets. And both have served as good hedges against many recessions. But gold has recently seen stronger numbers. Still, both precious metals can find a valuable place in a well-diversified portfolio. But how much should you invest in gold, silver, or both? Many financial advisers recommend you devote no more than 10 percent to 15 percent of your portfolio to alternative investments such as gold and silver.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.

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