The price of gold has been remarkably hot so far this year. And though prices have pulled back in recent sessions, I still think the shiny yellow metal ought to be viewed as a staple in any diversified portfolio aiming to hedge against various risks and black swans over the long run. Nonetheless, some very smart money managers, including the great Warren Buffett himself, aren't huge fans of the asset.

Most notably, Buffett notes that gold, while pretty and shiny, is not a productive (income-producing) asset. Undoubtedly, gold just sits there, perhaps costing investors money for secure storage.

Of course, you could own some gold notes or stash gold bullion underneath the mattress, but doing so probably isn't advisable! In any case, gold has its drawbacks. And worse, it is pretty much impossible to value. It's only worth as much as the next person will pay. But despite its speculative nature, I do view gold as one of the best stores of wealth over extended periods.

The case for checking out gold and silver miners today

As we've found out over the past couple of years, inflation can take a big bite out of the value of a dollar. And if you're overweight cash, you'll probably feel the full pains of elevated inflation. If inflation is what you foresee, gold may very well be the safe haven asset to stash a portion (let's say around 5% or less) of your portfolio into.

Though I do view the recent 3% slip in gold as buyable, I do view silver as the potentially more profitable precious metal as we head into year's end. Indeed, silver isn't just a poor man's gold. In fact, amid the precious metals rally, silver prices have outdone gold.

Gold prices are up 16% year to date â a pretty impressive run that could have legs as the Federal Reserve approaches its first interest rate cut. Meanwhile, silver has been up more than 23% year-to-date.

Indeed, silver has been the shinier of the two metals so far this year. But can silver's outperformance continue into the second half?

Only time will tell. Regardless, I do view silver as having more upside from current levels. At this juncture, the shares of silver miners look most intriguing and ready to gain in the back half.

A cheap silver stock for the second half

At the time of writing, shares of First Majestic Silver (TSX:AG), which recently changed its ticker to a more appropriate "AG" (the elemental symbol for silver), look pretty cheap, while it's down over 63% from its early-2021 high.

At $8 and change, AG stock seems like more of a value trap or falling knife right here. That said, if you're bullish on silver, First Majestic is the way to play it. The company saw production slip in the first quarter but seems positioned for a bounce back at some point down the road. Despite the first-quarter fumble, the company is still en route to hitting its targets for the year.

At 3.3 times price-to-sales (P/S), I view the silver mining stock as nothing short of a bargain. But do be ready for excessive choppiness given the higher beta (1.4), which entails more market risk than most other TSX names.

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