While gold prices continue capturing headlines with record-breaking runs past $2,800 per ounce, a growing chorus of market analysts and precious metals experts are quietly making the case for silver as the superior investment choice in today’s volatile economic landscape.

The shift in sentiment comes as three critical vulnerabilities in gold’s traditional safe-haven narrative emerge: potential central bank liquidations during economic crises, over-dependence on retail demand from price-sensitive markets, and research questioning its effectiveness as an inflation hedge.

Central Banks: From Buyers to Potential Sellers

The conventional wisdom that central banks are perpetual gold buyers faces a harsh reality check from Venezuela’s ongoing economic crisis. The South American nation has been forced to liquidate gold reserves at an alarming pace, selling 8 tonnes in the first half of 2025 alone, despite having only 61 tonnes remaining in total reserves.

The implications extend beyond Latin America. Italy holds 2,451.9 tonnes of gold reserves worth over $200 billion at current prices, while Spain and Portugal maintain significant reserves relative to their economic output. During the previous European debt crisis, financial analysts noted that Italy’s gold reserves alone could cover 24% of the country’s estimated borrowing needs over two years.

“If we see renewed fiscal stress in Europe, the temptation to monetize gold holdings could create unprecedented supply pressures,” warns London-based precious metals strategist James Mitchell. “Germany and Italy have already begun repatriating gold........

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