What is the Best Silver and Gold ETF?
Silver ETFs provide an efficient way of accessing this precious metal without all the complexity associated with physical ownership. Tracking its price fluctuations, these ETFs can be traded throughout the day on stock exchanges.
Bullion-backed ETFs, however, are susceptible to numerous risks that could compromise your investment during an emergency – from banking system disruptions to obsolete tax laws that treat gold as collectible.
1. iShares Silver Trust
SLV provides an easy, cost-effective way of investing in silver without the complexity of owning physical metal. Physical silver can be difficult and cumbersome to store, trading at a premium to spot prices.
Sponsor of SLV allows authorized participants to make risk-free arbitrage profits by purchasing silver bullion on the open market and then trading it in for shares from SLV trust, helping keep its trading above or below its underlying bullion value. This mechanism prevents SLV from trading too far above or below its true bullion value.
SLV stands out from the pack by not holding futures contracts that expose investors to contango and backwardation risks, thus giving this fund an improved category risk rating than many commodity ETFs.
2. Global X Silver Miners ETF
Silver Exchange-Traded Funds provide investors with an efficient and low-cost way of accessing price exposure without incurring the extra hassles associated with physical silver ownership. These funds are managed by experienced fund managers with expertise in investing and navigating commodity markets.
Silver’s high demand in industrial applications makes it highly susceptible to market changes. Meanwhile, gold provides less volatile market fluctuations and acts as a powerful diversifier to your portfolio.
SIL is designed to track the Solactive Global Silver Miners Index and offers investors over 30 mining companies that could enable them to profit from rising silver prices. Notable holdings include Pan American Silver and Mexico’s Industrias Penoles; however, this ETF also holds gold-focused miners; it does not provide full silver mining exposure as such, although its expenses are 26 basis points lower than its competitor ETF and could make for an excellent choice.
3. Market Vectors Gold Miners ETF
As inflation accelerates, more investors are turning to precious metals as a hedge against depreciating fiat currencies. Due to physical silver and gold being costly assets, exchange-traded funds (ETFs) offer an ideal way for small investors to access precious metal investments.
This ETF tracks silver prices based on London Bullion Market Association daily spot-fixing prices, providing greater liquidity compared with its physically-backed counterparts due to being traded throughout the day on stock markets.
This ETF invests in top gold mining companies worldwide, offering you indirect exposure without incurring storage costs or having its prices fluctuate directly. Returns tend to track movements in gold prices but have less volatility – making this ETF an excellent addition to your portfolio.
4. Market Vectors Silver Miners ETF
The rally in precious metals this year has led to an explosion of interest for silver miner-related ETFs, like PureFunds ISE Junior Silver ETF (NYSEArca: SILJ), which is up 118.5% year-to-date and follows the ISE Junior Silver Miners Index; with Canadian companies accounting for 88% of assets, as well as significant exposure in both the U.S. and U.K. Top holdings include First Majestic Silver, Pan American Silver and Mag Silver as top holdings!
Investing in commodities such as gold and silver involves risk, including the possible loss of principal. Metals ETFs’ performance depends heavily on both price of physical commodity underlying ETFs as well as mining company profitability; as such they should be used by traders who view metals as hedge against inflation or potential financial crises.
5. Market Vectors Gold Miners ETF
Silver and gold exchange-traded funds (ETFs) offer an effective way to diversify your portfolio. Managed by veteran fund managers with extensive expertise navigating commodity markets, these ETFs strive to deliver strong performance while mitigating risk from value depreciation.
Silver differs from gold by having more industrial applications. Thus, its demand often increases in times of economic expansion.
iShares Silver Trust (SLV), the market-leading silver ETF, currently manages $11 billion of assets under management and boasts superior liquidity compared to smaller rival SIVR which launched three years after SLV. Its early mover advantage and impressive returns have cemented SLV’s place as the market leader.