Why are gold and silver considered "safe haven" assets?

Gold and silver are considered "safe haven" assets because they tend to maintain or increase their value during times of market turbulence and economic uncertainty. Unlike paper currencies, which can be devalued by inflation or government policies, precious metals have inherent value and limited supply. Throughout history, investors have turned to gold and silver when stock markets decline, inflation rises, or geopolitical tensions increase, making them a popular hedge in investment portfolios.

What's the difference between investing in physical gold/silver and mining stocks?

When you invest in physical gold or silver, you're buying the actual metal which you need to store and secure. Mining stocks, on the other hand, represent ownership in companies that extract these metals. Mining stocks can offer additional growth potential through production increases, new discoveries, and dividends. However, they also come with company-specific risks like management decisions, production costs, and operational challenges that don't affect physical metals. Mining stocks often provide leverage to metal prices—meaning they might rise or fall more dramatically than the metals themselves.

How does silver differ from gold as an investment?

While both are precious metals, silver has significantly more industrial applications than gold, with roughly 50% of silver demand coming from sectors like electronics, solar panels, and medical equipment. This gives silver a dual nature as both a precious metal and an industrial commodity. Gold, meanwhile, is primarily used for investment and jewelry. Silver is also more volatile than gold, often experiencing larger percentage price swings. It's generally more affordable for small investors, but requires more storage space due to its lower value-to-weight ratio compared to gold.

What is market capitalization and why does it matter for mining stocks?

Market capitalization (or "market cap") is the total value of a company's outstanding shares, calculated by multiplying the current share price by the number of shares. For mining companies, market cap indicates the company's size and often correlates with factors like production volume, reserves, and financial stability. Larger-cap miners (like Newmont or Barrick Gold) typically offer more stability but potentially slower growth, while smaller-cap companies might provide higher growth potential but with increased risk. Market cap helps investors understand a company's relative position in the industry and can be useful for comparing similar companies.

11 handpicked stocks

Gold & Silver

Will investing in these metal mining stocks make your portfolio sparkle? These carefully selected precious metal companies were chosen by our professional analysts for their potential to serve as a hedge against economic uncertainty. Discover how gold and silver miners could add stability and growth to your investments.

Han Tan | Market Analyst

Updated 2 days ago | Published at mai 4