How to Invest in Silver & Silver vs Gold Comparison

Advantages of Investing in Silver

1. Broad Industrial Demand

Silver has a wide range of industrial applications. While it’s best known for jewelry and coins, it’s also used in luxury kitchenware, medals, and numerous electronic components and vehicles which are sectors tracked by The Silver Institute.

2. Potential Hedge Against Inflation

Like gold, silver is considered a precious metal that retains value over time.
This makes it a potential hedge against inflation or economic crises.
However, silver is often referred to as the “little brother of gold” , and gold remains the preferred safe haven.

3. Greater Portfolio Diversification

Diversification is the only “free lunch” in investing.
Adding silver to your portfolio increases asset diversification, potentially reducing risk exposure.

Disadvantages of Investing in Silver

1. Greater Supply Compared to Gold

Approximately 1.75 million tons of silver have been mined globally, compared to just 208,000 tons of gold. This means gold is significantly rarer and tends to have a more rigid supply.

2. Higher Volatility

Silver is more volatile than gold due to its smaller market capitalization, about $2.6 trillion vs $26 trillion for gold. Industrial demand also plays a major role, fluctuating with economic cycles.

Example of Historical Volatility:

Where to Buy Silver ETFs

You can invest in silver ETFs through recognized international brokers like Interactive Brokers, Fusion Markets or IC Markets.

Popular U.S. Silver ETFs:

• iShares Silver Trust (SLV) – Management fee: 0.50%, AUM ≈ $19B
• abrdn Physical Silver Shares ETF (SIVR) – Management fee: 0.30%, AUM ≈ $2.5B

European (Irish) Silver ETFs:

• iShares Physical Silver ETC (ISLN / SSLN) – Fee: 0.20%
• Invesco Physical Silver ETC (SSLV / SLVP / 8PSB) – Fee: 0.19%

Silver Miners ETFs:

• Global X Silver Miners ETF (SIL) – 0.65% fee
• Amplify Junior Silver Miners ETF (SILJ) – 0.69% fee

Silver vs Gold: Which is Better?

1. Historical Performance

Over the last 50 years, gold outperformed silver in overall returns and with lower drawdowns.
Silver had brief outperforming periods but generally lagged in the long run.

2. Supply Differences

Gold remains rarer and less flexible in supply, which supports its store-of-value appeal.

3. Inflation Hedge & Diversification

Both metals offer inflation protection and diversification benefits, often performing well during crises.

4. Volatility

Silver’s volatility can bring faster gains in rallies but deeper losses during downturns.
Historically, its drawdowns have been far steeper than gold’s.

Shaun David, Senior CleaRank market analyst, sums it perfectly, “Silver is the “little brother” of gold, capable of sharper moves both up and down. For long-term stability, gold is generally preferable, while silver suits investors seeking higher short-term potential or tactical opportunities.”

Gold-to-Silver Ratio Explained

This ratio shows how many ounces of silver are needed to buy one ounce of gold.

Example:

If gold = $4,000 and silver = $40 → the ratio = 100.
A ratio of 100 means 100 ounces of silver equal one ounce of gold.

Historical Range:

Interpretation:

For instance, in March 2020, the ratio peaked at 126 during the COVID crisis, followed by a strong silver rally. In May 2025, it reached 105, then dropped to 83 by October 2025 as silver surged again.

How to Buy Silver ETFs – Step by Step

Other Ways to Invest in Silver

The above does not constitute a recommendation for any action and/or a substitute for any investment advice/marketing.

FAQ

Disclosure:
This analysis is provided for informational purposes only. All prices, data, and forecasts reflect market conditions at the time of writing and the latest fact-check (as of the date specified above). Investors should consult with a qualified financial advisor before making investment decisions.