Silver vs Gold: Which Precious Metal Offers Better Returns?

Choosing between silver vs gold for your portfolio has always been a tough call for investors. Both are considered precious metals and hedges against inflation, but have distinct characteristics that cater to different investor profiles and goals. In 2025, the debate is more relevant than ever as both have touched record highs. So, should you invest in gold or silver? Let’s see which suits you best and how to invest wisely in each.

Gold vs Silver: Which One Is Better for Your Portfolio?

Investors shouldn’t rely solely on past returns. Consider these points before you invest in silver ETF.

• Volatility
  Silver moves faster than gold, reacting quickly to industrial demand and market changes. It can rise or fall sharply while gold stays steadier and more reliable in uncertain times.
• Liquidity
  Both metals are easy to sell but gold has the advantage in liquidity. Its high value in a compact form makes it quicker to trade or encash during market swings. Silver, being bulkier & lower in value per unit, needs more space and effort to store or transport.
• Demand Drivers
  Gold’s demand comes mainly from jewellery, central banks and investors, making it a stable store of value. Silver’s demand is mostly industrial in solar panels, EVs and electronics, so its price moves more with economic growth.
• Inflation Hedge
  Gold has long been go-to hedge against inflation. When prices rise or currencies fall, investors turn to it for safety. Silver also gains in such times but its performance depends more on industrial demand.
• Portfolio Fit
  If you prefer safety, stability and long-term wealth preservation, gold should dominate your portfolio. But if you’re comfortable taking a bit more risk for higher potential returns, silver deserves a share. A balanced mix 70% gold and 30% silver works well for most investors.

Silver vs Gold: Historical Returns Comparison

Here’s a quick comparison of silver and gold returns.

Why Silver Is Rising in 2025

We’ve all seen headlines about investment in silver,let’s find out why it’s rising consistently.

• Industrial Demand Boom
  Biggest reason silver is shining this year is its use in modern industries like electric vehicles, batteries, electronics and especially solar panels.
• Supply Shortage
  Unlike gold, about 70–75%, of silver comes as a by-product of mining other metals. This year, demand surged while supply lagged, driving prices up. Silver market has now run a deficit for the fifth consecutive year.
• Cheaper Than Gold
  In 2025, gold-silver ratio stands near 84:1, meaning one ounce of gold costs roughly 84 ounces of silver. This suggests silver is still undervalued in comparison to gold. Many investors view this as a long term opportunity to buy silver before it catches up.​
• Global Moves and Policy Shifts
  In 2025, major economies & financial institutions began showing interest in silver. Countries like Russia and Saudi Arabia reportedly increased their silver holdings. Saudi Central Bank also made fresh allocations to global silver funds such as the iShares Silver Trust (SLV) and Global X Silver Miners ETF (SIL), both among the largest in the world. Even United States added silver to its critical minerals list.

Why Gold Still Holds Its Shine

Here are a few reasons why gold is the most trusted and safe investment.

• Trusted Safe Haven
  Gold continues to be the world’s go to metal when uncertainty hits. Central banks from China, U.S and India have been buying gold in 2025 to secure reserves.
• Low Volatility, Steady Returns
  Unlike silver, gold isn’t easily shaken by short term trends. Prices move slowly, making it ideal for people who want long term safety rather than quick profits.
• Excellent Inflation Hedge
  Whenever inflation rises and currencies weaken, gold holds its value. That’s why gold remains a important part of every investor’s long-term portfolio.

FAQs

• Is silver more profitable than gold?  
  In short term yes. Silver can give higher short-term returns, but it’s also more volatile. Gold performs better for consistent, long-term gains.
• How to invest in gold?  
  You can invest through Gold ETFs, mutual funds, or even start small SIPs in gold schemes. Each offers different levels of safety, liquidity, and tax benefits.
• Can I hold both gold and silver in my portfolio?  
  Absolutely. A balanced approach like 70% gold, 30% silver can helps you enjoy both stability and growth.