Gold and silver can both offer big benefits to your portfolio, but one could make more sense than the other right now.
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Precious metals like gold and silver have long played a role in portfolios during periods of economic stress, inflation concerns and shifting monetary policy. And, as widespread global uncertainty continues to reshape markets in 2026, investors are once again reassessing where traditional stores of value fit, and whether diversification beyond stocks and bonds makes sense right now.
That reassessment has coincided with some extraordinary price moves. Gold's multiyear climb has carried it well past earlier records, with the price of gold currently sitting at a record high of over $4,600 per ounce, while silver has emerged as a standout in its own right, with the price of silver currently hovering above $85 per ounce. What began as a rebound in both metals has evolved into a broader precious-metals surge, driven by everything from central bank demand and supply constraints to changing expectations around inflation and interest rates.
With both gold and silver posting historic gains, the question many investors now face isn't whether precious metals matter — it's how to choose between them. To help clarify the trade-offs, we spoke with experts about how gold and silver tend to perform under different economic conditions, and what those differences could mean for investors deciding whether to own gold, silver or a mix of both.
Find out more about the benefits of gold investing here.
Gold vs. silver: Which is better for your portfolio?
Experts agree that gold and silver have unique strengths in portfolios.
"Gold is the clear leader when it comes to stability. It offers a proven track record of maintaining value, especially in times of economic uncertainty," says Alex Ebkarian, COO and co-founder of precious metals dealer Allegiance Gold.
Silver, while more volatile, brings its advantages.
"It's a more affordable commodity … [and is classified as] a precious and industrial metal," explains Brandon Thor, CEO of Thor Metals Group.
The dual nature can lead to price swings based on industrial demand, offering the potential for higher returns but with increased risk. This volatility can be a boon for investors who can tolerate more risk in exchange for potentially higher rewards.
Before incorporating these metals into your investment strategy, it helps to understand how they perform during recessions, high inflation and economic growth periods.
Add gold to your investment portfolio today.
In a recession
In a rough economy, gold often takes the lead, living up to its reputation as a safe haven. Ebkarian cites the 2008 financial crisis as a prime example.
"Gold surged over 130%, from about $800 per ounce to $1,900 per ounce by 2011," Ebkarian says.
Investors flocked to it for stability during uncertain times.
Silver also performs well in recessions, but it's a wilder ride. He notes that silver jumped from around $10 per ounce to nearly $50 per ounce in the same period, a whopping 400% increase.
But these sharp movements come with a catch.
"In a pronounced economic slump, silver's exposure to potentially worsening industrial output could limit its upside," warns Thor. This is because silver has industrial uses that gold doesn't, making its price more sensitive to overall economic health.
During periods of high inflation
When prices across the economy start climbing, gold and silver often become go-to alternative assets for investors.
Gold, in particular, has been an effective inflation hedge. To illustrate this, Ebkarian points to gold's performance during the 2020 pandemic.
"As inflation fears ramped up due to monetary stimulus, gold hit an all-time high above $2,000 per ounce, up 25% that year," Ebkarian says.
This underscores gold's role as a safeguard against currency devaluation.
Silver also steps up during inflationary periods but with more dramatic swings. He notes that silver surged from $18 per ounce in early 2020 to over $28 per ounce, a 55% increase. Silver investors might see higher potential gains in high inflation times, but should be prepared for a bumpier ride.
Amid economic growth
During periods of economic expansion, silver often takes the spotlight.
"[This is because of] its industrial applications in electronics, solar panels and other growth sectors," says Ebkarian. The increased industrial demand can lead to sharp gains for silver as the economy recovers and grows.
Gold, on the other hand, "may underperform as investor attention shifts toward higher-yielding assets [such as] stocks," he notes.
Which precious metal should you invest in?
"Which one [you should invest in] depends on [your] goals," says Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX). "Silver is a higher beta investment than gold but carries with it higher annual returns historically. Gold is often a superior inflation hedge."
Ebkarian recommends investing in both (regardless of market conditions) for a diversified approach. Gold is a wise primary choice if you're looking to grow and preserve your wealth. But "silver can be a smart addition if you want to complement that security with the potential for industrial-driven growth," he says.
The bottom line
Both silver and gold can be valuable in your investment strategy. But if you've never invested in precious metals, consider speaking with a financial advisor to determine the right mix for your portfolio. Start small — perhaps allocating a modest percentage of your investments to gold and silver — and build over time.
Edited by Angelica Leicht
