Investing in Gold vs. Silver: 3 Key Differences to Know

Gold last traded at $1,941 an ounce. Silver at $26.75 an ounce.

NEWS SUMMARY: Precious metal prices rose on safe-haven buying and a weaker dollar. U.S. stocks traded mixed in another volatile session as tech once again attempted to rebound from its recent slump.

Hartill/Motley Fool---"When the economy is tanking and inflation is high, investors often rush to gold. Silver is also viewed as a safe-haven investment, though it gets a lot less hype. Both precious metals have been sought after throughout history, so they're appealing when stocks and currencies are losing value....While gold and silver have similar boom-and-bust cycles, there are a few key differences to consider when you're deciding whether investing in gold vs. investing in silver is a better move. 1. Gold is more expensive due to its smaller supply....Gold is more expensive because it's by far the rarer metal. Worldwide, just 3,300 tons of gold were mined in 2019, compared to 27,000 tons of silver, according to the U.S. Geological Survey....2. Silver's industrial uses make gold the hedge of choice. Gold and silver prices tend to move in the same direction, but gold is a better recession hedge. More than half of the demand for silver is driven by its countless industrial uses. It's widely used in electronics, automobiles, solar panels, medicine and manufacturing, to name a few....3. Silver is more volatile than gold. While short-term fluctuations in gold prices get a lot of attention, gold is relatively stable as a long-term investment. The silver market's small size relative to the gold market makes it susceptible to wild price swings....Because of silver's volatility, it may be more appealing than gold if you're seeking to speculate on short-term fluctuations. But as a long-term hedge, gold is clearly more attractive."