- PPF Points
- 2,039
If we talk about volatility, silver is certainly more volatile than gold. Although both precious metals are impacted by the state of the market and the sentiments of investors, silver is the one that tends to swing in price more dramatically which is a sign of it being the most uncertain of the two. However, it does not necessarily mean that the situation is bad - it shows that silver is more sensitive to various transitions in the economy, to the demand factor, and to some extent even to the news. A major contributing factor to that is the small size of the silver market in comparison to gold, i.e. it requires smaller trade volume to push the silver price up or down. Moreover, silver has an extensive industrial application in electronics, solar panels, and medical technology, meaning that its price-sensitivity to growth and decline of the economy is greater than in the case of gold. We... even though it also acts as a hedge against inflation and hence, also a safe investment asset. The former one is, Hope, used the most when crises take place or inflation appears, and it is steady as always despite the situation of the economy, for central banks and big institutions trust gold. In contrast, the silver fills the title of one of the forms of saving despite not having the same level of support from institutional representatives. Then, in all probability, if you are in search of something stable and with a lower degree of risk, gold would be more suitable for you. However, if you can deal with big changes and are waiting for the potential rising as a percentage, the volatility of silver might be just the thing for you. The only thing you should take into account is that silver can be very volatile- but sometimes such a situation could lead to bigger profits.