Weekly Buzz: Gold or silver? You might want to own both ✨

5 minute read

Investors spooked by the latest presidential tariff threats have sent gold soaring to a record-breaking USD 3,000/oz – it’s now up 15% since the start of the year. While gold is stealing the spotlight, its often overlooked cousin has been staging its own impressive rally. Silver seems like it's always stuck in second place – but maybe that's just because of the Olympics.

The silver lining in gold’s record run

Gold and silver may share a display case at the jewelry store, but they play distinctly different roles as investments. Both serve as safe-haven assets when markets get shaky, but silver does double duty. Beyond its status as a store of value, it's essential for everything from solar panels and electric vehicles to medical devices and electronics

There's reason to believe its performance isn't just a flash in the pan – silver's industrial applications give it a unique edge, and the global transition to clean energy is only accelerating demand for the metal. However, this also means its prices are tied closer to the ups and downs of the global economy.

What’s the takeaway here?

If you want more stability: stick with gold, it's less volatile, more liquid, and widely accepted as the premier safe-haven asset. If you're after more growth with your glitter: consider silver, its hybrid nature as both precious and industrial metal gives it added potential, but it also comes with higher volatility.

For most investors, though, this isn't an either/or decision. Both metals can serve complementarily in a well-constructed portfolio. And there’s no need for a visit to the goldsmith either: you can adjust your allocations to gold and silver both with our Flexible Portfolios.

This article was written in collaboration with Finimize.

💡 Investors’ Corner: Economic anxiety versus economic activity

US shoppers are reining in spending, manufacturing is slowing down, and business confidence is slipping. In fact, Americans are the most worried they've been about missing debt payments since 2020. So, what does this mean for your investments?

First, keep in mind that there are two types of economic data. The "soft" data, surveys and indices of how people feel about the economy, fall on the weaker side. But the "hard" data, measures of actual economic activity, is holding up. The latest US jobs report showed continued employment gains, while the Weekly Economic Index – which tracks higher-frequency, real activity like retail sales and electricity usage – shows that the US economy is still growing at a healthy 2.5% over the past quarter.

Of course, perception can eventually shape reality. If enough businesses hold back investments because they're spooked, or if enough households tighten their belts "just in case," those fears could become self-fulfilling. And looming over everything is Trump's economic agenda – a topic we unpack in our latest CIO Insights: No Pain, No Gain.

The smarter move is to ensure you’re diversified across different markets and asset types. Investing strategically across different global markets means you're not betting everything on a single economic story – and adding assets like gold or silver to the mix gives you an added buffer. What’s important is finding opportunities wherever they emerge – something our General Investing portfolios are built for.

📖 A Little Context: The gold-silver ratio

Investors compare gold and silver prices, using the gold-silver ratio – or how many ounces of silver it takes to buy one ounce of gold. The number fluctuates with market forces, averaging around 60:1 in modern times but swinging as wide as 120:1 during crises. When the ratio is historically high, some investors see it as a signal that silver might be undervalued relative to its golden cousin.