Investor Beware - Gold ETFs - Silver ETFs - Expensive & Risky

GoldSilver.com
MAY 24, 2011


 

Gold Exchange Traded Funds ( ETFs ) are expensive!

Gold ETF fees vs. Master / Sub-Account Segregated Vault Storage costs

Example: $500,000 or 333 oz gold bullion with $ 1500.00 gold spot.

 

Gold ETF Vehicle Minimum Annual Fee Minimum Annual Cost
GLD 0.40% $ 2000.00
IAU 0.25% $ 1250.00
SGOL 0.39% $ 1950.00
AGOL 0.39% $ 1950.00
ZKB 0.40% $ 2000.00

 

Vault / Despository Annual Fee Annual Cost
Salt Lake City $1.44 oz $ 479.52
Hong Kong $1.44 oz $ 479.52

 

Silver Exchange Traded Funds ( ETFs ) are expensive!

Silver ETF fees vs. Via Mat Fully Private Segregated Vault Storage costs

Example: $500,000 or 13,698 oz silver bullion with current $ 36.50 silver spot.

Silver ETF Vehicle Minimum Annual Fee Minimum Annual Cost
SLV 0.50% $ 2500.00
SIVR* 0.45% $ 2250.00
HUZ 0.65% $ 3250.00
ZKB 0.60% $ 3000.00
* Minimum fee after 12 months    

 

Vault / Depository Annual Fee Annual Cost
Via Mat Miami 0.25% $ 1260.00

 

Investors must search long and hard to uncover the total annual expenses associated with gold ETF and silver ETF vehicles. Gold and silver exchange traded funds, or ETFs, are designed to deduct fees and expenses from investor shares, thus they reduce one’s paper holdings over time.

Investors who hold physical bullion in third party segregated vault storage services we offer never have their physical gold or silver holdings reduced due to storage nor management fees.  Customers are simply charged their respective vault storage fees in fiat dollars, this helps them maintain their safe haven money which we believe matters most over the long haul.

With GoldSilver.com you can always find the current segregated vault storage costs per depository by simply visiting our dedicated vault storage webpage ---> http://goldsilver.com/storage/

       

 

Gold ETFs & Silver ETFs are not Safe Haven Investments! 

 

 

At GoldSilver.com we believe serious gold and silver investors should not own ETFs.   

It is critical to understand that bullion in hand coupled or held within accounts in fully insured segregated vault storage depositories are the keen one two punch for investing in silver and gold. 

As you have seen in the tables posted above, ETFs are almost always more expensive than what the industry regards as the safest method of storing gold and silver, that being private fully insured segregated vault storage.  See said segregated vault storage insurance below:

Gold ETFs and silver ETFs do not offer investors the benefits or protections of physical silver and gold bullion ownership.  ETFs offer very little protection for investors seeking financial safety. 

Almost all gold or silver ETFs do not allow redemptions or physical delivery of gold and or silver holdings.  The ETF prospectuses which do allow possible physical redemptions, allowing fund share for physical bullion swaps, typically have requirements which are next to impossible to meet for most main street investors.

With segregated vault storage holdings with the world famous armored car vault in Salt Lake City, Hong Kong, or with Via Mat Miami, the average gold and silver investor can take physical delivery of their gold and silver holdings both domestically or internationally to the more than 40 countries GoldSilver.com currently delivers to.

Exchange Traded Funds, or ETFs, do not offer returns over the future’s spot price of gold and or silver; they attempt to track the spot price and they can potentially fail to track it all together. In contrast, physical owners of silver and gold bullion can reap large sellback premiums with current and future physical silver shortages and lacking gold bullion market supplies.

One of the main reasons for physical gold and silver ownership is to have safe haven tangible assets outside of the financial institutions, holdings with minimal counter-party risk.  Silver ETFs and Gold ETFs are beholden to bank trustees, brokerage accounts, banking laws, and financial market regulations; they are not undisclosed private segregated vault storage accounts like the ones we offer our customers.  Vault storage accounts also remain open regardless of bank holidays or financial failures.

Silver and gold bullion provides 24-hour liquidity while a silver or gold ETFs can only be exchanged during market trading hours. 

In summary, intelligent investors know that physical silver and gold ownership is not beholden to fiat currency failures. Bullion assets stand apart from the fractional reserve banking model which currently stands at a cross roads of another crisis.

For us, paper silver and gold ETF future spot price tracking promises can never stack up against real physical silver and gold bullion that one can own outright in hand or hold in a private third party segregated vault storage account.  There is no comparison in terms of risk, cost, or liquidity.


The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
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