NEW YORK (

TheStreet

) -- Silver and gold have become safe havens in this uncertain market but investors should keep in mind the important differences in how the two commodities trade.

When uncertainty loomed over Wall Street at the beginning of the economic downturn, many investors fled to gold as a safe haven and a way to hedge against a weakening stock market and to protect against inflation.

According to the World Gold Council, the demand for gold is still prevalent and remained strong in the second quarter. In fact, the investment demand for gold metal rose by 46% from earlier in the year.

However, it is down 9% year-over-year. What's more, the

SPDR Gold Shares

(GLD) - Get Report

is up 16% from a January low of $79.79 after it closed at $92.34 on Monday.

Although gold has remained healthy and in an uptrend, many experts believe that with an improving global economy, a stronger U.S. dollar and weaker fears of inflation, the demand for gold will soften and will remain range-bound in the near term.

Silver has many of the same roles as gold: It can be used as a safe haven and for hedging purposes. What makes this metal so much more different than gold is its importance in industrials.

Silver is often used in electronics and batteries and is directly influenced by base metals. In addition, most silver is mined as a by-product of other metals such as lead, zinc and copper. The supply-and-demand influences on these metals indirectly influence silver.

Many expect silver's future will remain bright as the risk-appetite theme continues to grow with a recovering global economy and production cutbacks in base metals output will put supply pressures on the precious metal. The

iShares Silver Trust

(SLV) - Get Report

is up 33% from a January low of $10.45. It closed at $13.90 on Monday.

When investing in these precious metals, one must be mindful of the inherent risks involved. To help minimize these risks an exit strategy with specific price levels is important.

According to the latest data from www.SmartStops.net, an upward trend in the previously mentioned ETFs could come to an end at the following price levels: GLD at $89.86 and SLV at $13.43. These price levels change on a daily basis and updated data can be found at www.SmartStops.net.

-- Written by Kevin Grewal in Laguna Niguel, Calif.

Kevin Grewal is an editorial director and analyst at SmartStops.net where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, he was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.