Silver Doesn't Have The Same Mojo As Gold Because Central Banks Don't Hoard It, Nassim Nicholas Taleb Says

Nassim Nicholas Taleb took to X to highlight a key distinction between silver and gold: central banks don’t hoard silver.

While both metals have been rallying this year, gold’s status as a central bank reserve asset gives it a unique position in the financial landscape. However, “it is a good idea to be long silver,” said Taleb.

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Central Banks’ Preference for Gold

Central banks have historically favored gold over silver due to its established role as a reserve asset. Gold’s liquidity, durability and universal recognition make it a preferred choice for large-scale reserve diversification.

Silver, in contrast, is more of an industrial metal than a monetary one, which limits its appeal for central banks despite its impressive price gains — the iShares Silver Trust (NYSE:SLV) has surged roughly 74% year-to-date compared with SPDR Gold Trust (NYSE:GLD) climbing about 55% over the same period.

Read Also: Goldman Sees Silver Rally Extending, Warns Of Heightened Volatility

Silver’s Volatility and Investment Considerations

While silver has outpaced gold in recent returns, it carries a significantly higher risk profile. Silver's Beta relative to the S&P 500 sits around 1.4, compared with gold's 0.46, illustrating that silver's price swings are far more dramatic.

Its standard deviation of returns over the past year also underscores this volatility, nearly doubling that of gold. Investors need to keep these dynamics in mind, as silver's industrial demand fluctuations and market liquidity can lead to sudden price shifts.

ETFs: A Gateway To Silver Investment

For those seeking exposure to silver without holding physical metal, ETFs like SLV offer a convenient option. As of mid-October 2025, SLV is trading above $46, reflecting both its recent strong performance and the broader market enthusiasm for silver. But unlike gold, silver's volatility and lack of central bank backing mean it's a higher-risk play — one that could reward, but also swing hard against investors.

Silver may offer short-term upside, but its elevated volatility and absence from central bank reserves differentiate it sharply from gold. Taleb's point is clear: the market treats gold and silver very differently, and investors should consider both performance and risk when allocating to precious metals.

Read Next:

• Silver Is Still Dirt Cheap Compared Gold — History Says That Won’t Last

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