For decades, gold has been the unquestioned symbol of financial protection. When markets wobble, investors instinctively run to gold. And while gold still plays an important defensive role, something important is happening beneath the surface:
Gold’s momentum is fading — and silver is taking the lead.
At Affiliated Advisors, we think of precious metals as wealth insurance: assets designed to protect purchasing power while positioning investors for what comes next. Right now, the story of wealth insurance is shifting.
Gold: Still Defensive, But Losing Its Edge
Gold remains a stabilizer. It’s the asset investors turn to when confidence erodes. But stability alone doesn’t always equal performance.
Recently, gold has shown weakening price momentum, struggling to push meaningfully higher while inflation, debt, and geopolitical risks persist. In real terms, gold’s purchasing power has come under pressure, and relative to other hard assets, its performance has lagged.
This doesn’t mean gold has lost its role — it means its role is changing.
Gold today looks more like insurance against collapse, not necessarily a driver of growth. For investors focused on precious metals portfolio strategy, that distinction matters.
Silver: The Metal Doing the Heavy Lifting
While gold has stalled, silver surged — up 168% in 2025.
That kind of divergence doesn’t happen by accident.
According to recent analysis from Bank of America, including commentary from commodities strategist Michael Widmer, silver appears to be entering a pivotal phase. Gold continues to function as a hedge, but silver is showing signs of a historic breakout, with projections that suggest meaningful upside potential.
In other words:
Gold is protecting. Silver is performing.
This shift is why many investors are reevaluating gold vs silver investment strategy.
Why Gold Is Falling Behind Silver
Gold’s value is driven primarily by sentiment, interest rates, and currency confidence. Silver, on the other hand, has something gold doesn’t:
Industrial necessity.
Silver is indispensable to the modern economy. It’s critical for:
• Renewable and solar energy
• Electric vehicles and battery technology
• Artificial intelligence hardware and data centers
• Power grids, semiconductors, and clean-water systems
• Medical and defense applications
Unlike gold, silver is consumed. Once used in industrial processes, it’s rarely recycled. That means global supply is quietly shrinking at the same time demand is accelerating.
Gold can sit in vaults forever.
Silver gets used — and disappears.
This supply-demand imbalance is a major reason silver is increasingly viewed as a long-term investment opportunity.
Institutions Are Adjusting — Quietly
Another signal worth paying attention to: Morgan Stanley has increased its recommended allocation to gold and silver combined — up to 20% of client assets in certain portfolio strategies.
That allocation isn’t about fear. It’s about resilience and growth in a world where traditional asset correlations are breaking down.
When large institutions reduce their reliance on gold alone and increase exposure to silver, it’s a signal that the metals landscape is evolving.
The American Silver Blind Spot
Despite silver’s performance and strategic importance, the average American owns almost none of it.
Less than 1% of U.S. wealth is allocated to precious metals of any kind.
At the same time, countries like China, Russia, and India are aggressively accumulating silver — not as speculation, but as a strategic resource.
That contrast raises an uncomfortable but important question:
What do they know that most Americans don’t?
For a report on the China, Russia, and Iran silver connection, email [email protected] and type in the subject line: Silver Report Please.
Wealth Insurance Means Adapting
Wealth insurance isn’t static. It evolves with markets, technology, and global power shifts.
Gold still matters — but relying on gold alone may no longer be enough. Silver’s combination of industrial demand, monetary potential, and shrinking supply is reshaping how forward-thinking investors approach gold and silver diversification.
At Affiliated Advisors, we help clients think beyond old narratives and position precious metals strategically, not emotionally. We help clients add a portion of silver and gold coins that are easily convertible to cash — rather than bars or certificates.
Final Thought
Gold is slipping from the spotlight.
Silver is stepping into it.
If wealth insurance is about preparing — not reacting — now may be the right time to take a closer look at what silver is telling us about the future.
