Gold and silver: different brothers in the markets

They often move together, but with completely different intensity. Gold and silver are the two precious metals par excellence, yet behind their similar graphs lie opposite worlds.

Whenever markets experience turbulence, both are sought as a safe haven. But while gold tends to move gracefully, silver prefers to run—and often overdoes it. To understand why, we need to look not only at the financial markets, but also at the real economy.

Gold: a “pure” refuge

In the case of gold, the logic is simple: it is almost useless, which is precisely why it is worth so much . Only a small portion of global demand—about 7–10% —comes from industrial uses (electronics, dentistry, precision components). The rest is pure investment and beauty: 45–50% of demand comes from jewelry , and another 35–40% from bars, coins, and ETFs .

In practice, over three-quarters of the gold purchased worldwide serves as a store of value or a symbol of status, not as a raw material for production. This makes gold one of the few assets capable of withstanding inflation, interest rates, wars, and recessions. Its price primarily reflects expectations about real interest rates and the strength of the dollar .

Silver: Industrial Refuge

Silver, on the other hand, is a different story. It's "half safe haven, half raw material." About 50–55% of global demand comes from industrial uses : solar panels, electronics, batteries, medical devices, and electric cars. Only 20–25% is investment demand, and the rest (about 25% ) comes from jewelry and silverware.

This dual nature explains why silver is much more volatile . When the economic cycle accelerates, industrial demand grows and silver soars (a drop of 10% in a few weeks is not uncommon). But if there are signs of a slowdown or rising rates, the same mechanism amplifies the decline (–15% in a month is equally common).

Volatility and market size

Market size also matters: silver has a market capitalization less than a tenth of gold's. This means fewer orders are needed to move the price, making swings more abrupt. Historically, silver's volatility is about double that of gold—a characteristic that attracts traders but scares more conservative investors.

Two metals, two psychologies

Ultimately, gold and silver represent two different ways of dealing with uncertainty. Gold is the symbol of stability : it is bought to sleep soundly. Silver is the symbol of hope : it grows with production, energy, and technology.

When the world slows down, gold strengthens. When the world restarts, silver explodes. And in between, between crisis and recovery, the two continue to dance together—like different, yet inseparable brothers.