Silver is considered a safe investment in times of uncertainty, a hedge against inflation and stocks. The use of silver as an industrial metal in many fields also affects the evolution of its prices and its prospects. Silver is cheaper than gold, but it is less traded, making it more volatile and illiquid. While silver can be volatile, the precious metal is also considered a safe asset, similar to gold, its sister metal.
Safe assets can protect investors in times of uncertainty and, as tensions rise, they could be a good option for those seeking to preserve their wealth during difficult times. There is greater industrial demand for silver compared to its biggest competitor, gold. The increase in demand may classify silver as a risky investment due to possible economic slowdowns. If you compare silver to gold as an investment strategy, it's important to note that the price of silver tends to fluctuate more than gold.
Demand for gold and silver comes from different sources, with gold being primarily an investment asset and silver an industrial asset. Both silver and gold can function as safe haven assets, but gold tends to have a better track record over longer periods of time.