Gold vs Silver
Two precious metals with very different uses. Gold is held above all as a store of value; roughly half of all silver is consumed by industry. That is why silver follows gold through the broad trends, but with far more violent swings.
Over the period both series share, Gold (Ounce) comes out ahead at +10.8% a year.
| Asset | Total return | Annualised | Volatility | Largest drawdown |
|---|---|---|---|---|
| Gold (Ounce) | ×14.6 | +10.8% a year | 15.2% | −40.7% (December 2015) |
| Silver | ×10.9 | +9.6% a year | 32.4% | −70.0% (January 2016) |
Figures calculated on 26/10/2026 from monthly closing prices. Past performance is no guide to future performance.
A monetary metal and an industrial one
Demand for gold comes mainly from jewellery, investment and central banks, which hold very large reserves. Industrial use exists but stays marginal: gold once mined is almost never destroyed, and the world stock only grows.
Silver is both a precious metal and an industrial raw material: electronics, solar panels, brazing, medical applications. A significant share of the silver consumed is never recovered. Its demand therefore depends on the economic cycle far more than gold’s does.
Why silver amplifies the moves
The silver market is much narrower than the gold market. For a comparable flow of buying, prices move further in both directions: silver tends to overshoot when precious metals rally, and to fall harder when they fall out of favour.
The ratio between the two prices — how many ounces of silver buy one ounce of gold — is watched closely across the industry. It has varied enormously over the decades, which is enough to show the two metals are not interchangeable.
Frequently asked questions
Are these the prices of physical metal?
They are the prices of the benchmark futures contracts, which set the world price. Buying physical metal departs from them through the product premium, storage and insurance.
Does gold pay an income?
No, and that is its main difference from a share or a bond: its return comes entirely from the movement of its price.