Gold had a stellar performance in 2025, with analysts highlighting that a portfolio strategy of 40% gold and 60% US equities was the most effective approach for the year. This marked a significant shift from 2020 and 2015, when bonds were the top performers. Despite this, both gold and silver are known for their ability to hedge against inflation and currency devaluation, often moving in the same direction.
However, silver is far more volatile than gold. While silver can experience rapid surges, it can also drop in value more quickly than gold during market downturns. This volatility was particularly evident in years like 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2014, 2020, and 2025, where silver's price movements were more dramatic compared to gold's.
Historically, gold prices have shown a steady rise over the past century, with notable peaks such as the 1970s when US President Nixon ended the gold standard, leading to a surge in gold prices. When adjusted for inflation, gold's prices have reached all-time highs. In contrast, silver's long-term growth has been less stable, and its inflation-adjusted prices have not surpassed the highs seen in 1980.
On 29 January 2026, silver reached a price of $121.67 per ounce, which, while a record, was still lower than the inflation-adjusted high of $150 per ounce in 1980. Despite this, silver's higher volatility offers the potential for better returns, making it an attractive but riskier investment compared to gold.