Gold & Silver ETFs: A Nervous Investor’s Log

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Right. So, I’ve been looking at these…things. ETFs. Exchange Traded Funds. Sounds terribly sophisticated, doesn’t it? Like something a grown-up would do. Anyway, it’s all about gold and silver. Apparently, everyone’s convinced they’re the answer. The answer to what, exactly, is still unclear. But I’m supposed to pick one. SGDM or SIL. Honestly, the pressure.

The idea is to invest in the companies that dig the stuff up. Not literally, of course. Though I did briefly consider a career in artisanal mining. It felt…grounding. But then I remembered I have a crippling fear of dirt. So, ETFs it is. The Sprott Gold Miners ETF (SGDM) and the Global X Silver Miners ETF (SIL). It’s like choosing between slightly different shades of…well, precious metal.

Let’s break it down. Because lists are calming. And frankly, my brain is already starting to fizz.

  • SGDM (Gold): Feels…sensible. Like a beige cardigan. Safe. Apparently, it focuses on the bigger gold companies. The ones that don’t take too many risks. Which, let’s face it, is a good thing. I’m all about minimising risk. My risk tolerance is roughly equivalent to a startled kitten.
  • SIL (Silver): A bit more…exciting. Like a silver jumpsuit. Potentially disastrous. It goes for the broader silver mining companies. Which means more volatility. More chance of things going horribly wrong. Still, silver is shiny.

The numbers, of course. One can’t ignore the numbers. (Though I often try.) SGDM has a slightly lower expense ratio (0.50% vs. 0.65% for SIL). Which means less money disappearing into the ether. Good. I’m watching my spending. Mostly. The 1-year returns were impressive – SIL led the way at 198.5% but honestly, past performance is no guarantee of future results. A disclaimer I’ve read approximately 7,000 times.

Then there’s the AUM – Assets Under Management. SIL has a whopping $6.7 billion. SGDM? A mere $829.2 million. Which means SIL is more popular. Which means more people could be trying to get out at the same time. A terrifying thought. I’ve seen crowds. I do not like crowds.

The composition is interesting. Both are 100% basic materials, which is reassuringly…basic. But SGDM is all about North American gold producers – Agnico Eagle Mines, Newmont, Wheaton Precious Metals. Very solid. Very…establishment. SIL is more global, with Pan American Silver and Coeur Mining in the mix. It feels a bit…adventurous. Like going to a foreign country without learning the language.

The max drawdown (how much the fund could lose in a 5-year period) was -56.79% for SIL and -49.68% for SGDM. Which means both could lose a significant chunk of my money. I’m starting to sweat. Perhaps I should just stick to savings accounts. They’re terribly boring, but at least they’re…predictable.

So, what does it all mean? Honestly? I have no idea. SGDM feels safer, more…responsible. But SIL has that alluring glint of potential. It’s a classic dilemma. Head vs. heart. Logic vs. impulse. And frankly, my impulse control is currently hovering somewhere around zero.

I suspect the “right” answer is to diversify. Spread the risk. But that requires…effort. And a spreadsheet. And I’m already feeling overwhelmed. Perhaps I’ll just flip a coin. Or ask my cat. He seems to have a good grasp of financial matters. (Mostly involving tuna.)

Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24. Will become disciplined long-term investor: Unlikely.

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2026-02-23 16:55