Many investors view precious metals as an appealing option when the economy is floundering and inflation is rising. While gold usually gets all the love, silver can also be considered as a safe haven investment in turbulent times. In fact, investors rushed into both gold and silver in August due to concerns about the pandemic and weakening U.S. dollar. Gold prices leapt above $2,000 an ounce for the first time ever and Silver surged to $28 an ounce, 140 percent above its 2020 bottom.

If you’re interested in investing in either gold or silver – or both – there are a few key differences between the two precious metals to keep in mind. Gold tends to be more expensive and more valued than silver because it is more scarce. Also, the demand for silver tends to be more stable than demand for gold since silver has many industrial uses, such as in electronics, solar panels and cars. That means gold is a better bet than silver when it comes to hedging against inflation. Finally, the price of silver tends to be more volatile than that of gold for several reasons, including the small size of the trading market.

Some investors prefer investing in mining stocks rather than direct investment in silver and gold. That’s an option if you’d like to add a commodity to your portfolio. Before you make any decisions, consult with a fiduciary financial advisor who can see how gold or silver fits in with your overall financial or retirement income plan.

Investing in Gold vs. Silver: 3 Key Differences to Know | The Motley Fool