In uncertain times, people look for something solid—literally. Gold and silver have been the go-to safety net for centuries. And right now, with inflation creeping up, currencies wobbling, and global headlines feeling a bit apocalyptic, they’re back in the spotlight.
In a world where markets swing, headlines panic, and trends come and go, precious metals offer something simple: stability. They don’t promise wild returns—but they do show up when other assets stumble.
So if you’re wondering whether gold or silver still deserve a seat at the table—spoiler: they do—let’s dig into why they’ve stood the test of time, how they behave when things get rough, and how to fit them into a smart, modern portfolio without overthinking it.
Why Precious Metals Still Deserve a Seat at the Table
Gold and silver aren’t flashy growth assets. They’re not trying to be. What they are is reliable—and that’s exactly what makes them valuable.
Here’s what keeps investors coming back to them:
- Long-Term Value
Gold, in particular, holds its purchasing power even when currencies lose theirs. It’s basically the original inflation hedge. - Built-In Diversification
When stock markets go south, precious metals often go north. That’s the kind of balance every portfolio needs. - Crisis Insurance
War, pandemics, financial meltdowns—when fear sets in, demand for metals usually spikes. - Easy to Buy and Sell
Gold and silver are some of the most liquid assets in the world. You can sell them almost anywhere, anytime.
Gold vs Silver: Similar, But Not the Same
Gold and silver might both fall under the “precious metals” label, but they don’t move the same way—or serve the same purpose—when markets get shaken up.
Gold is the go-to in times of trouble.
Think of it as the world’s financial fire blanket. When things like inflation rise, currencies wobble, or central banks start pumping money into the system, investors usually run to gold. Not because it grows fast, but because it holds steady when everything else feels uncertain.
Just look at how gold performed during major global events:
- In 2008, during the financial meltdown, gold jumped 25%.
- In 2011, as Europe faced a debt crisis, it climbed 30%.
- And in 2020, during the peak of COVID uncertainty, it rose 28%.
It’s not about quick wins—it’s about having something solid when the world gets shaky.
⚪ Silver: The Double Threat
Silver pulls double duty. It’s part precious metal, part industrial workhorse. That makes it more volatile—but also more opportunistic.
It reacts to fear like gold and to economic growth (since it’s used in electronics, solar panels, EVs, etc.).
Silver Price Surges: More Volatility, More Upside
| Year | What Moved the Market | Silver Price Change |
| 2009 | Rebound from crisis | +27% |
| 2011 | Investor mania + economic fears | +80% |
| 2020–2021 | Pandemic + industrial boom | +47% |
👉 Silver tends to be more erratic—but that’s also where the opportunity lies, if you know what you’re doing.
Invest Smart in Volatile Times
Markets are jumpy, currencies are shaky. So how do you make gold and silver work for you, not against you?
Here’s what seasoned investors tend to focus on:
1. Follow the Big Picture
Gold and silver prices move with macro trends—things like inflation, interest rates, and geopolitics. For example:
- Rising inflation = good for gold
- Tech innovation = good for silver (think EVs, green energy)
2. Diversify Within the Metals
You don’t have to choose one or the other. Many investors hold both—plus maybe a little platinum or palladium if they’re feeling spicy.
3. Manage Risk Like a Pro
Even safe-haven assets can dip. Always use stop-losses, keep position sizes reasonable, and don’t bet the farm on one move.
4. Watch the Rand
If you’re based in South Africa, the USD/ZAR exchange rate matters. A weaker rand boosts your returns on dollar-denominated metals. A stronger rand? Not so much.
How Much Precious Metal Should You Actually Hold?
There’s no magic number, but here’s a rough idea based on how cautious or aggressive you want to be:
| Investor Type | Suggested Allocation to Gold/Silver |
| Conservative | 5–10% |
| Balanced | 10–15% |
| Aggressive | Up to 20% (or more if you’re macro-minded) |
💬 The goal isn’t to go all-in on metals—it’s to give your portfolio a cushion when everything else gets shaky.
Thinking About Gold or Silver? Here’s What’s Worth a Look
If you’re curious about dipping your toes into precious metals, there are a few good routes you can take—each with its own flavor.
- Krugerrands
These are the OG of gold investing in South Africa. They’re trusted, recognizable worldwide, and easy to sell if you ever need to cash out. - NewGold ETF (via Absa)
Not a fan of keeping physical gold in your safe? This ETF lets you invest in gold through the JSE. No gold bars under the bed—just a smart, low-hassle way to track the price. - Mining Stocks
Companies like Sibanye-Stillwater and Harmony Gold give you exposure to gold prices, but remember—you’re investing in a business, not the metal itself. That means things like leadership, labor issues, and operational costs all come into play. - Precious Metal Funds
Offered by banks and online platforms, these funds bundle a bunch of metal-related investments into one. Great if you want to keep it simple and let someone else do the heavy lifting.
Let’s Clear Up a Few Misunderstandings About Gold and Silver
“Gold doesn’t earn anything, so what’s the point?”
Totally fair question. No, it doesn’t pay interest or dividends—but that’s not the job it’s here to do. Gold is about stability. Think of it like a fire extinguisher: you don’t need it every day, but when you do, you’re glad you have it.
“Silver’s just gold’s little brother.”
Not even close. Silver is a workhorse in the industrial world—used in everything from electronics to solar panels. It’s got a personality of its own and plays a completely different role in the economy.
“Metals are too risky to bother with.”
Sure, they can swing in price. But when other markets go sideways, metals tend to hold their ground. They’re not magic, but they can be a steady hand when the rest of your portfolio is having a rough ride.
