Gold tends to dominate the conversation during periods of financial uncertainty.

Central banks buy it…

governments monitor it…

and investors like Jim Rickards preach how gold continues to play an important role during periods of rising debt, monetary instability, and declining confidence in fiat currencies.

But silver occupies a different place in the precious-metals landscape…

and, if understood, it may prove a powerful asset in an investor’s arsenal:

“As you know, I write and speak frequently on the role of gold in the monetary system. Yet, I rarely discuss silver,” Rickards writes. “Some assume I dislike silver as a hard asset for your portfolio. That’s not true.”

Unlike gold, silver sits at the intersection of two very different forces…

1. Monetary: Historically, it’s functioned as money for centuries.
2. Commodity: It also plays a major role in the modern global economy through its many uses in electronics, manufacturing, and solar energy infrastructure.

That dual identity helps explain why silver often behaves differently than gold.

It also helps explain why silver ownership has developed such a passionate following among investors…

Some view it as a more accessible entry point into precious-metals ownership (silver trades at far lower dollar amounts than gold).

“Silver is the precious metal for everyday people,” as Adam Sharp, contrarian editor of The Daily Reckoning, who specializes in non-traditional assets, aptly puts it.

Others see the growing industrial demand for silver as an increasingly important part of the story…

For instance, Sharp explains that with oil and gas prices up sharply, the world’s facing additional energy inflation… leading to a surge in demand for solar panels:

“Around 19% of total silver demand comes from solar panels. Silver is the best conductor of electricity, and resists corrosion much better than copper. So the tiny electrical connections on solar panels use silver.”

As shown here:

Jim Rickards also describes silver’s dual importance.

Of its monetary role, he writes:

“In an extreme crisis, silver may be more practical than gold as a medium of exchange. A gold coin is too valuable to exchange for a basket of groceries, but a silver coin or two is just about right.”

And here’s Rickards on silver’s role as a commodity:

“Silver is more difficult to analyze than gold because gold has almost no uses except as money. (Gold is widely used in jewelry, but I consider gold jewelry a hard asset, what I call ‘wearable wealth.’). Silver, on the other hand, has many industrial applications. Silver is both a true commodity and a form of money.”

So how do professional investors think about balancing gold and silver exposure inside a real-world portfolio?

WorthNet Partner Adviser Rob Villaflor’s been in the trenches on trading desks and run broker-dealer operations. Now a Managing Partner at Sprott Wealth Management, Villaflor helps investors think through how assets like gold and commodities may fit within a broader portfolio. WorthNet has partnered with Sprott Wealth Management as part of its adviser network and receives compensation for introductions to prospective clients, creating a material conflict of interest:

“I think of gold like the reliable beta in a precious-metals allocation,” he notes. “Silver, on the other hand, is more like alpha to me – the potentially higher-octane version of gold.”

Part of the reason is that silver’s market is dramatically smaller than gold’s. And it’s now experienced six consecutive years of structural supply deficits.

That smaller market can potentially create larger price swings… and, in strong precious-metals bull markets, silver has historically shown the ability to outperform gold during certain periods.

Still, Villaflor cautions that the tradeoff is higher volatility.

“We don’t have a one-size-fits-all recommendation,” he says. “Conservative investors or those with lower risk tolerance might look to gold. For aggressive portfolios seeking real alpha, they may want to look at adding silver while fully acknowledging the higher volatility.”

Like Rickards and Sharp, Villaflor notes that silver’s industrial role has become increasingly important in recent years.

About half of global silver production is now tied to industrial applications, including electronics, manufacturing, solar infrastructure, and emerging technologies tied to AI and data centers.

And while individual solar panels now use less silver than they once did, overall demand has continued to rise sharply due to the sheer growth in global installations – particularly in China.

“Silver is the most conductive metal available in volume on the open market,” Villaflor explains. “So it is hard to imagine a drastic drop in demand from substitution.”

That said, he stresses silver’s industrial exposure can also create periods of weakness during economic slowdowns or deflationary environments.

In other words:

Silver’s dual role can potentially amplify both upside and volatility.

From a portfolio-construction standpoint, Villaflor says investors generally approach silver exposure through one of three avenues:

1. Physical bullion…
2. Exchange-traded trusts and funds…
3. Or silver-mining equities.

Physical silver appeals to investors who want tangible assets outside the traditional financial system and prefer eliminating counterparty risk altogether.

Meanwhile, vehicles like the Sprott Physical Silver Trust (PSLV) provide exposure to physical silver without requiring investors to personally store and secure bullion themselves. (Of course, investments in trusts like PSLV are subject to market risk, including fluctuations in silver prices, and units may trade at a premium or discount to net asset value (NAV), which can affect investment returns. Additional risks and tax considerations apply. Please review the trust’s prospectus and consult your financial, legal, and tax advisers before investing.)

And for investors seeking greater upside potential, shares in silver miners can potentially provide additional leverage to rising silver prices – though Villaflor cautions they also carry substantially higher risk.

“Miners may deliver the highest torque but therefore carry the highest risk/reward proposition,” he says.

More broadly, Villaflor believes many investors misunderstand the role precious metals can potentially play inside a diversified portfolio:

“To us, a common misconception is that monetary metals are speculative instruments,” he explains. “Instead, we think of them, ideally, as a potential safe haven.”

Villaflor says Sprott generally believes a 5–10% allocation to physical precious metals could make sense within a long-term, diversified portfolio strategy.

Whether investors ultimately prefer gold, silver, or a combination of both often comes down to individual goals…

risk tolerance…

and broader portfolio construction.

But silver’s unusual mix of monetary history, industrial demand, and smaller market dynamics may help explain why it continues to attract such passionate interest among investors today.

P.S. Gold and silver move back into focus during periods of inflation and volatility.

At WorthNet, we regularly share insights from advisers and market specialists on bullion ownership, precious-metals strategy, and how investors think about positioning gold and silver within a long-term portfolio.

You can explore more of those conversations here.

And if you’d like, you can also click the button below to complete WorthNet’s brief 90-second questionnaire to see whether a conversation with an independent adviser from our network may make sense for your goals and interests.

Note, WorthNet itself doesn’t provide advisory services and is not a client of Sprott Wealth Management or the other advisers; rather, we are compensated for promoting certain advisers in our network and we have a financial incentive to recommend these advisers, which creates a material conflict of interest. [More Information]

Robert V. Villaflor

CEO of Sprott Wealth Management

Natural Resource Investment Strategist

Robert V. Villaflor is the CEO of Sprott Wealth Management, where he leads a team of advisors who work with investors seeking exposure to alternative investments and real assets as part of a diversified portfolio approach. Sprott Wealth Management (CRD #139022) is a proud member of the WorthNet partner adviser network.

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Last Revised: July 20, 2026