Gold vs Silver Miners ETF (SIL) (SIL)
Gold vs Silver Miners ETF (SIL) (SIL): annual returns, regime-dependent correlation, drawdowns, and how each fits a diversified portfolio. LBMA + public market data, updated 2026-06-01.
- Updated
- Real-time LBMA & ECN data
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As of October 26, 2023, Gold (XAU) offers a stable store of value, while the Silver Miners ETF (SIL) (SIL) provides leveraged exposure to silver prices, driven by mining company performance. LBMA data shows gold's consistent demand. SIL's volatility requires careful risk assessment against gold's traditional hedging capabilities.
SILKey Facts
- Gold ticker
- XAU/USD (LBMA spot)
- Silver Miners ETF (SIL) ticker
- SIL
- Asset class
- Equity Index
- Comparison basis
- Total return, USD-denominated
- Data source
- LBMA + public market feeds
- Last refresh
- 2026-06-01
What this means
Historically, Gold (XAU) and silver miners (SIL) exhibit a positive correlation, but SIL's equity nature introduces higher beta. This means SIL tends to amplify silver's price movements, both up and down, making it more volatile than gold itself. Understanding this dynamic is crucial for portfolio construction.
For diversification, Gold (XAU) acts as a primary diversifier against equity risk due to its low correlation with broader stock markets. SIL, while linked to a precious metal, behaves more like an equity sector ETF, offering diversification benefits but with a different risk profile than pure gold.
In the current macro context, rising inflation and geopolitical uncertainty typically favor Gold (XAU) as a safe-haven asset. However, strong industrial demand for silver, which influences SIL, can create opportunities. Investors must weigh the inflation hedge of gold against the growth-sensitive potential of silver miners.
Correlation Dynamics. While both Gold (XAU) and silver miners (SIL) are influenced by precious metal prices, their correlations are not perfect. SIL's performance is tied to the operational success and leverage of silver mining companies, which can lead to deviations from pure silver price action and, by extension, gold.
Risk and Return Profile. Gold (XAU) generally offers lower volatility and acts as a capital preservation asset. The Silver Miners ETF (SIL) (SIL) presents a higher potential return profile due to operational leverage and the speculative nature of mining equities, but this comes with significantly elevated risk and drawdowns.
Portfolio Allocation Strategy. Investors seeking a stable store of value and inflation hedge often allocate to Gold (XAU). Those willing to accept higher volatility for potentially greater gains, and who believe in silver's industrial and monetary demand outlook, might prefer SIL, understanding its equity-like risk.
Frequently Asked Questions
How does Gold (XAU) compare to Silver Miners ETF (SIL) for portfolio stability?
Gold (XAU) is generally more stable, acting as a primary safe-haven asset. The Silver Miners ETF (SIL) (SIL) is more volatile due to its equity nature, offering higher potential returns but with increased risk.What is the historical correlation between Gold (XAU) and Silver Miners ETF (SIL)?
While both are linked to precious metals, Gold (XAU) and Silver Miners ETF (SIL) (SIL) show a positive but imperfect correlation. SIL's performance is influenced by mining company specifics, leading to higher volatility than gold.When should an investor prefer Gold (XAU) over Silver Miners ETF (SIL)?
Prefer Gold (XAU) for its role as a stable store of value, inflation hedge, and primary diversifier during times of economic uncertainty or market stress. SIL is better suited for those seeking leveraged precious metal exposure with higher risk tolerance.What are the key risk differences between Gold (XAU) and Silver Miners ETF (SIL)?
Gold (XAU) carries market risk and sovereign risk. Silver Miners ETF (SIL) (SIL) adds operational risk, management risk, exploration risk, and significant equity market correlation risk on top of silver price volatility.