If we reverse the logic and look at silver’s weaker side, these are the key points:
Silver suffers when economic growth slows. Because it is heavily used in industry, weaker manufacturing, construction, or tech demand can drag prices down even if gold holds up.
It is not a pure safe haven like gold. In sharp risk-off events, investors often sell silver first to raise cash, which can cause faster and deeper drops.
Silver is also more volatile and speculative. Smaller market size means prices move sharply on sentiment, positioning, and fund flows, both up and down.
On the supply side, silver is often produced as a by-product of other metals like copper and zinc. This makes supply less responsive to price signals and can cap upside during weak cycles.
Finally, silver tends to lag during tightening cycles. When interest rates rise and the US dollar strengthens, silver usually underperforms gold.
In short, silver offers higher upside, but the trade-off is higher downside risk and bigger swings along the way.
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