Gold versus silver – What should investors choose?

Gold performed brilliantly in 2025. In fact, analysts said that the best portfolio strategy of 2025 was 40% gold and 60% US equities. This contrasts sharply with 2020 and 2015, when bonds performed best.

However, we should not forget that gold and silver prices tend to move in the same direction. Both metals hedge investors against inflation.

They both hedge against inflation and currency devaluation. While there is some correlation in the performance of these two metals, silver is much more volatile than gold. The grey, shiny metal can surge very fast, but its value can drop faster than gold’s when precious metals depreciate. This can be seen from the diagram and the table below.

Gold versus Silver returns

Particularly remarkable were the following years: 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2014, 2020 and 2025, of course. If you look at the table above, you will see that these years have been marked with substantial price surges or price drops. But in each of these years, silver was much more volatile than gold. In other words, the grey shiny metal depreciated dramatically compared to gold. At the same time, silver surged higher when the demand for precious metals increased.

As you can see from the graph below, the 100-year gold price rise was quite steady.

Gold prices

However, there are still peaks on the historical graph above. The most obvious one was in the 1970s when US President Nixon cancelled the gold standard and therefore gold’s backing of the US dollar. This made the US dollar depreciate, while gold prices surged in dollar terms.

Interestingly, if you adjust gold’s historical prices for inflation, you will see that they have hit their all-time highs, also adjusted for inflation.

Gold prices – Adjusted for inflation

Silver prices also rise in the long run. But their growth is much less stable than gold’s.

Silver prices

Also, if you look at the silver price graph below, you will see that the grey shiny metal’s prices have not reached their inflation-adjusted all-time highs. In today’s money, silver cost $150 in 1980. On 29 January 2026, silver reached a price of $121.67 per ounce, but this price record was lower compared to the one reached in 1980 in real terms.

Inflation-adjusted silver prices

So, from that perspective, silver seems to be cheaper than gold. However, before making their choice, investors should remember that silver is much more volatile than gold but offers better returns than gold.