Safe haven from Tariffs war - Gold vs Silver

It's perhaps not the hottest topic right now, however I had wanted to write ✍️ this topic for some time. I just couldn't find an appropriate time to illustrate my point, until now...

Precious metals group: gold, silver comes immediately to mind. Of course, there are also platinum and palladium, rhodium, iridium, etc. Among these, gold, silver, platinum and palladium are readily tradable, with gold and silver being the most popular.

Many people lump gold and silver together. However in reality, they can't be more different.

Let me explain.

Firstly, I will not visit them based on their chemical or physical properties.

Both gold and silver are used as an inflation hedge and a store of value. They are the old time favourite of retailers and institutional buyers alike since they do not spoil or degrade over time. This is where their similarity ends.

Gold, as they are worth a lot more than silver (30 to 100x historically), is the preferred store of value by central banks. Otherwise, central banks would need a lot more storage space to hold gold equivalent amount of silver. 

Silver, besides being a store of value, like copper, is considered also as an industrial metal. Silver is obviously used in a lot of green related industries and that complicates matter for silver as solely a store of value. You might ask, isn't it even better? I would have thought so... 🤔 Apparently NOT!

As explained above, silver is considered as both an industrial metal and a store of value. While the value of silver might be preserved during uncertainty (like time of the tariff war), its role as an industrial metal acts against it. The concern of low industrial activity in an economy downturn comes back to haunt silver. 

Just look at what happens to both the prices of gold and silver during the onset of the tariff shock. 

Gold price remains stable (slightly lowered as traders liquidated some to cover their losses elsewhere).

Silver, on the other hand, crashed like no tomorrow! The "ugly" side of industrial application rear its head 🗣️!

Do we then abandon silver and focus solely on the pot of gold? Of course not! Silver has an important role to play in every portfolio. More so than gold if you ask me. Often, people forget that when silver is being used, there would be less silver for investors or traders to buy. Furthermore, there's a projection of silver shortage in the horizon given increased silver applications, recession or otherwise. The shortage will hit, the timeframe is the only moveable part.

I continue to load up more gold and silver (especially silver) related counters during this period. $ProShares Ultra Silver(AGQ)$  $Sun Silver Ltd(SS1.AU)$ They have done my portfolio a lot of good during this uncertainty time. Take the uncertainty in your stride... With gold and silver by your side           

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