Gold or Silver? My Top 3 Reasons For Which Precious Metal I Prefer These Days

Hello sound money followers!

Well it seems that Canadians have re-elected a Liberal government. What will it mean for us economically? As part of its election platform, Carney has announced close to half of a trillion dollars in spending. This just means more wasteful use of our tax dollars that it doesn't even which means more money printing and borrowing = devaluing the CAD dollar, increasing inflation and reducing our purchasing power. What were ~40% of voters thinking??? Well, I digress...back to the subkect of this article.

Gold is getting all the attention in 2025—and for good reason. It has broken out to new all-time highs, is flying off the shelves at Costco, and is getting more financial headlines than it has in years as a safe haven during all of this political, economic and market uncertainty - and certainty.

Gold has done its job exceptionally well. It remains one of the best assets for preserving wealth in uncertain times. But for everyday people like you and I looking for growth potential rather than just preservation, silver may be the better move right now.

Here are my three reasons why.

1. Gold Is Surging —Silver Is Still Lagging

Gold has had an impressive run over the past few years. Over the past year alone, it has surged more than 28% in CAD terms, outperforming even the TSX and S&P 500 in 2024. As of early 2025, gold is trading around $4,480 CAD per ounce, shattering its previous highs and confirming a long-awaited breakout from its decade-long trend.

Meanwhile, silver has lagged—still trading well below its all-time high of around $60 CAD per ounce in 1980 - it's been awhile. Historically, silver tends to follow gold’s lead with a delayed but often more explosive upside. Today, the gold-to-silver ratio (GSR) is hovering around 100 (meaning 1oz of gold buys 100 ozs of silver). Traditionally, it has been closer to 20:1 so silver looks historically cheap by comparison. Now that gold has already broken out and likely to continue higher still, silver may be next in line.

Over the past few years, as inflation in the global economy surged, silver—just like gold—has appreciated in value, providing protection against the erosion of currency. Still, its lower price point compared to gold makes it more accessible to more people as an inflation hedge.

2. Silver Demand Is Exploding—Thanks to the Green and Tech Revolutions

Silver isn’t just a precious metal—it’s also a critical industrial material, and its demand is skyrocketing due to new technologies:

• Solar panels: Silver is essential for photovoltaic cells.

• Electric vehicles (EVs): Silver is used in electrical systems, batteries, and sensors.

• Artificial intelligence, medical devices, photography, jewellry, coins: All require silver’s unmatched conductivity, antimicrobial properties and value.

In 2025, global industrial demand for silver is expected to exceed 700 million ounces. Yet mine production remains relatively flat, creating a persistent supply-demand imbalance that supports higher prices over the long term.

3. Silver Supply Is Tight—While Gold Is Already in the Limelight

While gold is now being sold at Costco and even WalMart and getting headlines in mainstream news channels, silver remains under the radar—yet its fundamentals are arguably stronger. Silver has been in a multi-year global supply deficit, with over 200 million ounces of unmet demand in 2024 alone. This tight supply is being quietly absorbed by industrial users, investors, and government mints.

And here’s the kicker: silver is still affordable. While gold is nearly $4,500 CAD per ounce, silver hovers under $50 CAD per ounce, making it more accessible for the average Canadian.

Bottom Line: Gold for Wealth, Silver for Growth

In my opinion, if you're looking to preserve your wealth, gold continues to prove its value. But if you’re aiming for significant upside and a hedge against inflation, silver offers a compelling mix of:

✅ Growing industrial demand

✅ Tight supply

✅ Affordable entry price

✅ Historical undervaluation vs. gold

✅ Strong performance during inflationary times

As more savvy people turn to precious metals, silver could be the breakout star.

Which precious metal do you prefer these days?

• 0%Gold
• 0%Silver
• 0%Platinum

Disclaimer: This podcast and article and their contents are only for education and entertainment purposes only. They reflect my views and opinions and are never to be considered as financial advice. As always, you should consult a certified professional so you can determine what's right for your circumstances.