Should you switch from gold to silver or hold both in your portfolio?

Silver ETFs have jumped 12.06% over the past month, beating gold ETFs which gained 5.59%. This has brought the gold-to-silver ratio down from 105 in April to 93 now, signaling silver’s recent strength. Some investors may be tempted to shift from gold to silver entirely. But that may not be the best move. Gold still plays an important role as a hedge in uncertain times, especially during geopolitical tensions or economic stress. Silver may be approaching a breakout, but gold stability gives it lasting relevance. So, complete switching is not recommended. Instead, staying invested in both can help balance safety and growth. 

Each metal serves a different purpose. Silver has more industrial use, particularly in electric vehicles and solar panels, which gives it a strong cyclical upside. On the other hand, gold is a reliable safe-haven and has historically preserved value over time. Holding both allows investors to capture silver’s economic potential while maintaining protection through gold. A 65% gold and 35% silver allocation are a good starting point for many portfolios. This keeps the core stable while giving room for tactical plays in silver. The exact proportion can vary based on risk appetite, but the idea is to avoid overexposure to either side. 

Silver is more suitable for aggressive investors looking to benefit from short-term movements or industrial demand cycles. Gold, due to its lower volatility and consistent performance, fits better with conservative investors or those with a long-term view. Investors should use silver tactically and gold strategically, adjusting silver positions based on economic cycles while maintaining gold as a permanent portfolio component. Together, they complement each other and reduce the need to time the market. This balanced approach helps investors stay prepared for both calm and stormy weather.