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Stay informed about everything you need to know about investing
This information is for general information only and does not constitute investment advice.
Anyone who decides to invest in precious metals quickly comes up against a classic question: should I gold whether buy silver? Both metals have a long history of protecting against inflation and economic uncertainty, but they usually play different roles within a portfolio.
Gold is considered the ultimate safe haven and is also described as the money of kings. Silver, on the other hand, moves more closely with the economic cycle and therefore has greater price fluctuations. On this page, we clearly list the most important differences, discuss which situations gold or silver is a better fit for, and explain why a combination of both is a logical choice for many investors.
Starting with an overview of the main differences between gold and silver.
In short, gold is more stable and defensive, while silver is a more daring investment that moves more closely with the development of the economy.
Gold has been used for thousands of years to protect capital against inflation. It's no coincidence that central banks hold it as a strategic reserve, and investors around the world are turning to gold in times of financial stress.
Historically, gold has maintained its purchasing power remarkably well. In periods of high inflation, geopolitical tensions and financial crises, the precious metal often outperformed stocks and bonds. We saw this in the 1970s, during the 2008 credit crisis, and today, at a time when investors are increasingly questioning the sustainability of the US dollar as a global reserve currency.
Gold’s returns are not only impressive on their own, but have also compared favourably with the S&P 500, the best-known stock market index in the United States. In the table below, we compare the average annual returns of gold and the S&P 500, measured in U.S. dollars. This provides a clearer view of what you can historically expect from the gold price.
If you are going to invest in gold, it is important to pay attention to a few things before you just park money somewhere:
Silver combines a monetary role with a strong industrial function. The metal is used in electronics, medical applications and solar panels, among others. At the moment, for example, silver is playing a major role in the AI revolution. As a result, the demand for investing in silver more strongly linked to economic growth and technological developments.
Historically, silver often moves more strongly than gold. In bull markets, silver can outperform gold by a large margin, but it often falls harder in economic downturns. This makes silver attractive for investors with a higher risk appetite. Although expectations for silver prices tend to be more volatile, they may also imply higher return potential.
When playing silver, a few extra points of attention:
For many investors, the choice is not either/or, but yes-and. Gold and silver complement each other well. Gold vapors portfolio volatility, while silver can add additional upside potential.
In macroeconomic terms, gold often acts as insurance against systemic risk, while silver offers more exposure to growth, industry and technological trends. Combining both creates a more robust precious metal allocation.
The right ratio between gold and silver depends on your personal goals, investment horizon, and risk appetite. Below you can see some illustrative examples of what a portfolio can look like:
E.g. 80% gold/ 20% silver
E.g. 70% gold/ 30% silver
E.g. 60% gold/ 40% silver
These examples are for illustrative purposes only and do not constitute investment advice. Your ideal distribution depends on your personal situation.
Are you unsure between gold and silver? Then it is important to take your personal situation and preferences as a starting point. Gold is often associated with stability, while silver is usually more sensitive to price fluctuations and can therefore react differently to economic developments.
For many investors, a combination of the two precious metals can diversify a portfolio. It is also possible to gradually build up a position, for example by periodically investing smaller amounts.
An important point of attention when buying physical silver in the Netherlands is VAT. Silver bars are usually subject to 21% VAT, which can affect the return.
GoldRepublic offers an alternative structure for this. By storing silver in a customs warehouse, for example in Zurich or Frankfurt, it can be held VAT-free under certain conditions. You are the legal owner of the silver, while no VAT is due as long as the silver remains in the warehouse.
This can mean a difference compared to silver that you physically hold yourself, such as coins that you keep at home.
Buying gold or silver doesn’t have to be an either-or decision. Both precious metals can play a role in a well-balanced portfolio. Gold is often associated with stability and protection, while silver can offer more dynamism and growth potential.
Would you like to explore which allocation may suit your situation? Discover the possibilities at GoldRepublic and easily build your own gold and silver portfolio.
This information is for general information only and does not constitute investment advice.
Are you unsure whether to buy gold or silver? Discover the main differences, risks and benefits, and which combination best suits your portfolio.
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