Gold ETFs vs Silver ETFs - Best Investments for 2019? | Summary and Q&A

TL;DR

Investing in gold and silver ETFs can provide a hedge against economic downturns, but there are advantages and disadvantages to consider. Gold ETFs like BAR and GLD offer similar functionality, but BAR has lower fees. Silver ETFs like SIVR may be more tied to the business cycle and have lower fees compared to SLV.

Key Insights

• 💨 Investing in gold and silver ETFs provides a convenient way to gain exposure to the price movements of these commodities without the costs and storage requirements of physical ownership.
• 💐 Choosing ETFs with lower fees, such as BAR and SIVR, can be beneficial as it reduces the impact of expenses on investment returns.
• 😒 Silver is more tied to the business cycle and has more industrial uses, making it potentially more volatile than gold during economic downturns.
• 🏅 The value of gold is inversely correlated with the US dollar, with a weaker dollar generally leading to higher gold prices.
• 🦔 Adding gold as a hedge to investment portfolios can help mitigate the impact of economic downturns and inflation.
• 🤱 Watching fees is crucial when investing in ETFs, as lower fees can have a significant impact on investment returns.

Transcript

hey YouTube I'm Jimmy in this video I'm going to go through the advantages and disadvantages of investing in gold and silver the best way to invest in them and which is better gold or silver from an investment standpoint so in a recent video I published a question came up about investing in gold and silver ETFs and although I know a decent amount a... Read More

Questions & Answers

Q: What is the advantage of investing in gold or silver ETFs instead of buying the physical commodities?

Investing in gold or silver ETFs eliminates the need for storage and allows investors to easily trade shares. Additionally, ETFs provide exposure to the price movements of the commodities without the markup or discount associated with buying and selling physical gold or silver.

Q: Why is BAR preferred over GLD for investing in gold?

BAR is preferred over GLD due to its lower fees (17.5 basis points compared to GLD's 40 basis points). Both ETFs offer the same functionality of tracking the price of gold, so choosing the one with lower expenses can provide a cost advantage to investors.

Q: How does silver differ from gold as an investment?

Silver has more industrial uses than gold, making it more tied to the business cycle. This can make silver more volatile than gold in times of economic downturns. However, silver ETFs like SIVR may not perform as well during a recession due to a potential slowdown in industrial demand.

Q: Why does the value of gold fluctuate with the US dollar?

Gold and the US dollar have an inverse relationship. When the dollar weakens, the price of gold tends to rise, and vice versa. The strength of the dollar is influenced by various factors, including interest rates. Rising interest rates tend to drive the dollar higher, which leads to lower gold prices.

Summary & Key Takeaways

• The best way to invest in gold and silver is through ETFs, as buying the physical commodities can be costly and require storage.

• Gold ETFs like BAR and GLD offer the same functionality of tracking the price of gold, but BAR has lower fees (17.5 basis points) compared to GLD (40 basis points).

• Silver ETFs like SIVR and SLV also track the price of silver, with SIVR having lower fees (30 basis points) compared to SLV (50 basis points).