AAAU vs SIL: A Precious Metals…Mess

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Okay, so you’re looking at these ETFs, AAAU and SIL. Precious metals, right? Supposedly a safe haven. Except…it’s never that simple, is it? AAAU, they just…buy gold. Actual gold. Like, they’re hoarding bars. It’s…direct. Which, frankly, seems almost…aggressive. SIL, on the other hand, buys companies that dig up the stuff. Silver mining companies. Which, logically, introduces…layers. Layers of potential mismanagement, fluctuating ore grades, and Canadian tax shelters. It’s a whole thing.

Let’s look at the numbers, because that’s what we’re supposed to do, isn’t it? The expense ratio on AAAU is…reasonable. 0.18%. Fine. SIL? 0.65%. More than three times as much! What are they doing with that extra money? Paying for better shovels? I suspect it’s going toward executive bonuses. Always the bonuses.

And the returns? SIL had this huge spike, 173.52% in a year. Looks good on paper. But it’s…suspiciously high. Like someone’s been playing fast and loose with the accounting. AAAU? A perfectly respectable 73.1%. Boring, maybe, but at least you know where you stand. It’s the predictability I appreciate. And the beta? SIL is practically bouncing off the walls. 0.78! AAAU? A sedated 0.13. I mean, come on. It’s practically comatose. I prefer that in an investment.

Here’s the kicker. They tell you about “max drawdown.” SIL lost 55.63% at one point. 55%! That’s…a lot of losing. AAAU? A manageable 20.94%. See? Predictable. And over five years, if you put a thousand dollars into SIL, you’d have…two thousand one hundred and sixty-nine. AAAU? Two thousand six hundred and eighty-one. A little bit more. It’s not about getting rich quick, it’s about avoiding catastrophe.

Now, let’s talk about what’s inside these things. AAAU is just gold. Physical gold. They hold it in the U.K. Why the U.K.? Is it safer there? Are the vaults better? I need answers. SIL, on the other hand, is a portfolio of 42 silver mining companies. 42! That’s a lot of companies to keep track of. And the top holding, Wheaton Precious Metals, accounts for over 20% of the fund. 20%! That’s…concentration risk. It’s like putting all your eggs in one…silver-lined basket.

Apparently, in 2025, everyone went crazy for precious metals. Gold went up, silver went up, the whole thing was a mess. And now, they’re saying it’s a hedge against the dollar. A hedge! Like we need another complicated financial instrument to protect us from…other complicated financial instruments. It’s circular. It’s infuriating.

And the volatility! They warn you about it. Precious metals are volatile. Prices go up, prices go down. It’s like a rollercoaster. I don’t want a rollercoaster. I want stability. SIL has the added complication of silver being a byproduct of other mining operations. So, if they can’t find enough silver, they’ll just dig up something else. It’s…opportunistic. And what happens when they decide to dig up something I don’t approve of?

Look, both these ETFs are benefiting from this whole precious metals craze. But I’m just saying, there’s a level of…complexity with SIL that I find deeply unsettling. Too many moving parts. Too much reliance on the whims of Canadian mining executives. I’ll take the boring, predictable gold bars, thank you very much. At least I know where I stand. And frankly, I’m tired of surprises.

For more ETF guidance, they have a link. I haven’t clicked it. I don’t trust links.

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2026-02-15 03:52