Wednesday , 23 August 2017


5 Must-have Gold and Silver ETFs

If you think gold prices will keep rising, these are the must-buy gold and silver ETFs to help you track precious metals’ prices and/or miners and royalty companies that benefit from them. Words: 424

In further edited excerpts from the original article* at www.TheStreet.com, Don Dion goes on to say:

1. The SPDR Gold Shares (GLD) is the largest physically backed gold ETF.

Owning this fund is like having fractional ownership in a stockpile of physical gold making it easier than buying gold bars and putting them in a safe at your house. The only downside is that this ETF is taxed higher than most ETFs – it is taxed as a “collectible” (like stamps, gold coins, baseball cards) – which can be as high as 26 per cent.

2. Market Vectors Gold Miners (GDX) is a basket of large cap miners.

This fund tracks large cap firms that are involved in the mining and production of gold giving you exposure to gold prices, but since miners have things like fixed costs, it won’t track the price of gold directly. This is a large liquid fund that offers exposure to both gold and silver miners.

3. Market Vector Juniors (GDXJ) is a basket of small cap miners.

Picking individual small cap gold firms for your portfolio is a risky proposition and owning GDXJ is a way to manage this kind of risk. Rather than tying the success of your gold holdings to one particular firm, owners of GDXJ get exposure to a basket of junior gold miners. This way, you can get involved in firms that have an even greater upside potential than their large cap peers, without risking it all on one firm.

4. iShares Silver Trust (SLV) is the largest physically backed silver ETF.

Like GLD, SLV offers fractional ownership in a physically-backed silver trust. Silver is another good metal to diversify your portfolio with, and it is different than gold in that it has industrial applications…. I like silver because it’s not at an all time high so it still has plenty of room to run.

5. ETFs Physical Silver Shares (SIVR) is a newer physically backed silver ETF.

SIVR is the same as SLV, in that it tracks a physical stockpile of silver but, in order to offer investors something different, the expense ratio is just 0.30 per cent, compared with SLV’s 0.50 per cent.

*http://m.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/five-silver-and-gold-bull-etfs/article1403681/?service=mobile

Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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