Not exactly. Silver is a highly cyclical product and is more volatile than gold. Silver performs well in selective pockets and is an inconsistent performer. Thus, catching the right entry and exit price is very important. Rushabh Desai, founder, Rupee With Rushabh Investment Services says that silver has a high correlation with gold and low correlation with equities. So, he opines, one can expect silver prices to move more or less in the same direction as gold, But when compared with gold, “silver has been more correlated to equities than gold.”
“Industrial demand for silver is huge and around 50% of silver mined globally is used in industrial applications and products. Thus, unlike gold which is considered as a pure hedge product, the prices of silver can get affected during economic crises, slowdowns and market falls especially when the industrial demand for silver is low or muted,” adds Desai.