This year, both gold and silver have reached impressive new highs.
With rising worries about soaring stock market valuations, many investors have been on the lookout for secure investment options. Typically, a rise in gold prices reflects a growing caution among investors.
However, silver has recently taken center stage. Exchange-traded funds (ETFs) that include both gold and silver have shown strong performances. For instance, last year, SPDR Gold Stock experienced a 64% hike, while iShares Silver Trust surged an astounding 145%.
Now, the question is: which ETF should one consider investing in this year? Let’s explore.
Gold and Silver Look Poised to Reach New Milestones This Year
Both metals have already hit new highs in 2026. As of January 19, silver was priced at approximately $94 per ounce, while gold edged close to $4,700 per ounce. Silver is just a 6% increase away from $100, and gold needs a similar push to touch $5,000.
Amid ongoing market unease and economic unpredictability, it seems likely that investors will continue favoring these metals as the year advances. However, considering how much they have already appreciated, there’s also a chance for some profit-taking soon, especially if these milestones are reached.
What the Gold-Silver Ratio Suggests
Both gold and silver generally trend together due to their status as safe assets. Yet, the gold-to-silver ratio is a crucial metric to keep an eye on when evaluating these investments. This ratio helps investors determine the relative price of gold compared to silver.
Historically, this ratio has hovered around 70:1 or more. The last time it dipped below 70 was back in the summer of 2021, a period marked by rampant inflation and concerns about stock valuations. Notably, that following year, the S&P 500 saw a decline of over 19%, while iShares Silver Trust saw only a modest 2% increase, and SPDR Gold Shares fell slightly.
Currently, the gold-silver ratio sits closer to 50:1, which is a significant shift and the lowest it has been since 2011. This could hint that gold may be comparatively undervalued versus silver and might, therefore, perform better as the year unfolds.
Should You Invest in Gold and Silver This Year?
Although gold and silver are regarded as safe assets, they can still experience dips. If given the choice, I would lean towards gold for investment today.
With silver’s sharp price increases as of late, it could be due for a correction, making it a riskier investment choice going forward. On the other hand, the SPDR Gold Stock ETF seems appealing given gold’s relative undervaluation compared to silver and its typical role as a safe haven during tough times.
Nonetheless, it’s wise to refrain from dedicating a large chunk of your portfolio to either ETF. While gold and silver have gained popularity recently, they haven’t historically been recognized as stable options. Rapid price surges can often lead to subsequent volatility and losses.
If market uncertainty is a concern for you, consider diversifying your portfolio with dividend stocks, index funds, and value stocks. Gold and silver might add some diversification, but the recent price hikes should not be seen as definitive indicators of future performance.
