{"id":914,"date":"2010-01-21T16:21:49","date_gmt":"2010-01-21T20:21:49","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=108"},"modified":"2018-06-10T10:58:23","modified_gmt":"2018-06-10T10:58:23","slug":"why-physical-silver-investors-love-etfs-but-not-owning-them","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/why-physical-silver-investors-love-etfs-but-not-owning-them\/","title":{"rendered":"Why Physical Silver Investors Love ETFs \u2013 But Not Owning Them"},"content":{"rendered":"

Why Physical Silver Investors Love ETFs \u2013 But Not Owning Them
\nby Jeffery Lewis<\/strong>
\nDespite the various reasons silver investors should not buy exchange-traded funds and instead opt for physical metals, there are also many reasons why investors should love them.
\nETFs Increase Precious Awareness<\/strong>
\nBefore silver and gold were spotlighted for their extreme gains, only a small percentage of investors even had proper allocations of physical metals in their portfolios.\u00a0 In what was a huge oversight for the average investor, silver and gold began their run upwards in price as stocks fell.\u00a0
\nSeveral years after the rise in metals pricing jumpstarted, exchange-traded fund sponsors begin to release slews of funds that were designed to track the changes in the price of precious metals.\u00a0 Today, ordinary investors can’t open the Wall Street Journal or turn on the news without hearing about precious metals investing and popular ETF choices.\u00a0 If you’re looking into investing in silver today, you most likely first heard about them via the popular derivative products on Wall Street.
\n\u00a0<\/strong>
\nETFs Drive up Prices<\/strong>
\n\u00a0<\/strong>
\nFew can deny the impact large exchange-traded funds have on the commodities markets, especially those that claim to be \u201cphysically backed\u201d by holdings in bank vaults.\u00a0 These funds have to invest every dime they receive into precious metals holdings and ultimately drive demand, as well as prices.\u00a0 One otherwise unrelated ETF, the United Natural Gas Fund, at one time held as much as 60% of the front-month futures contracts for natural gas.\u00a0 As you can see, these market behemoths have a dramatic impact on prices.\u00a0 However, they aren’t driving prices down; they’re driving them up!
\nETFs Open to a Trillion Dollar Market<\/strong>
\nRetirement accounts are one place you’re unlikely to see a commodity investment category, and you will certainly never see one for precious metals \u2013 until now.\u00a0 A variety of exchange-traded fund sponsors are lining up to encourage corporations, as well as investment companies, to list their ETFs among 401k plans and other products.\u00a0 Retirement planning is a trillion dollar business which controls immense amounts of investors\u2019 monies.\u00a0 Should ETFs break into the mainstream 401k account, it\u2019s likely that precious metals will be even more in demand and rise equally in price.
\nOne Reason to Hate ETFs<\/strong>
\nOf course, exchange-traded funds are not all bright and shiny. \u00a0One of the many reasons investors should buy physical metals rather than paper metals is due to high annual fees that most exchange-traded funds charge.\u00a0 There is simply no reason to give away some of your well earned returns just for the convenience of getting a paper statement as to how well your holdings are performing.\u00a0
\nFor example, the iShares Silver Trust ETF (SLV) charges a whopping .5% annual fee, negating the returns you make on your silver.\u00a0 If you invested $10,000 into SLV, a 10% annual return is worth $61,416 in 20 years.\u00a0 On the flipside, investors who buy $10,000 in physical metals will have $67,274 in 20 years, which is a difference of $5,850.\u00a0 Why give away those extra thousands of dollars, not to mention endure the risk of \u201cpaper\u201d metals?\u00a0\u00a0\u00a0
\nWhile we can love exchange-traded funds for bringing thousands of investors into the world of precious metals ownership, as investors, it makes little sense to own them ourselves, especially at a cost of $5,850 on a relatively small $10,000 investment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Why Physical Silver Investors Love ETFs \u2013 But Not Owning Them by Jeffery Lewis Despite the various reasons silver investors should not buy exchange-traded funds and instead opt for physical metals, there are also many reasons why investors should love them. ETFs Increase Precious Awareness Before silver and gold were spotlighted for their extreme gains,More<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[77,103,82,104,87],"yoast_head":"\nWhy Physical Silver Investors Love ETFs \u2013 But Not Owning Them<\/title>\n<meta name=\"description\" content=\"Why Physical Silver Investors Love ETFs \u2013 But Not Owning Them\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/why-physical-silver-investors-love-etfs-but-not-owning-them\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Physical Silver Investors Love ETFs \u2013 But Not 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