Shiny Rocks & Diggers: A Modest Proposal

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Shiny Rocks & Diggers

Right then. Let’s talk about things that glitter. Specifically, the iShares MSCI Global Silver and Metals Miners ETF (SLVP +4.80%) and the iShares Gold Trust (IAU +2.38%). Both are, shall we say, attempts to capture the age-old human fascination with burying shiny things and then digging them up again. It’s a perfectly rational activity, when you think about it.1 The returns, however, are rarely rational. This isn’t about the metal itself, mind you. It’s about what people believe the metal is worth. And belief, as any seasoned accountant will tell you, is a notoriously volatile asset.

SLVP, you see, doesn’t actually hold the silver. It holds shares in the companies that do the digging. Which introduces a delightful layer of inefficiency. They have to pay people, maintain equipment, and occasionally deal with geological surprises. IAU, on the other hand, is simpler. It’s essentially a very large, heavily guarded vault.2 This comparison is less about finding the ‘best’ investment and more about understanding the different flavours of hope and despair on offer.

A Snapshot (Cost & Size)

Metric SLVP IAU
Issuer iShares iShares
Expense ratio 0.39% 0.25%
1-yr return (as of 2026-02-06) 189.5% 73.0%
Dividend yield 1.5% n/a
AUM $1.2 billion $79.6 billion

IAU is, predictably, the cheaper option. Someone has to pay for all those miners, you see. And while SLVP offers a dividend – a small trickle of profit from the earth – IAU offers the quiet dignity of not pretending there’s actual growth happening.3

Performance & Risk Comparison

Metric SLVP IAU
Max drawdown (5 y) -55.41% N/A
Growth of $1,000 over 5 years $2,518 $2,733

What’s Inside

IAU is, at its heart, a simple proposition. Buy gold, store gold, occasionally count gold. It’s the financial equivalent of a very secure hamster cage. It doesn’t do much, but it’s reliably… there. With $79.6 billion under management, it’s a testament to humanity’s enduring belief that shiny things are inherently valuable. No dividends, naturally. Why share the wealth when you can simply… possess it?

SLVP, however, is a far more ambitious undertaking. It invests in the companies that extract the shiny things. Which means it’s subject to all the usual corporate dramas: strikes, regulatory hurdles, the occasional geological disappointment. It’s a portfolio of 30 companies, including Hecla Mining (HL +3.91%), Indust Penoles (IPOAF +0.89%), and Fresnillo Plc (FNLP.F +6.05%). It’s a gamble, really. A bet on the competence of management, the stability of governments, and the continued existence of silver in the ground.

For further guidance on the art of transferring wealth from your pocket to someone else’s, consult the official guide.4

What This Means for Investors

You can, of course, simply bury a bar of gold in your garden. It won’t grow, it won’t pay dividends, but it will be undeniably there. Commodities, generally, don’t multiply on their own. Businesses, on the other hand, can. They can innovate, expand, and occasionally, even generate a profit. SLVP, by holding shares in these businesses, has a slightly better chance of increasing in value over time than an ETF focused solely on the commodities they dig up. Slightly. Don’t mistake this for a guarantee.

And, as it happens, silver has outperformed gold recently. Over the past few years, at least. Which means SLVP has also outperformed IAU. The IAU delivered a respectable gain, but it pales in comparison to the dizzying heights achieved by SLVP. Of course, past performance is no guarantee of future results. Especially when dealing with shiny things.

In conclusion: choose wisely. Or don’t. The universe, frankly, doesn’t care.


1 The Guild of Alchemists and Venture Capitalists has long maintained that the act of digging is fundamentally symbolic of progress. It also happens to be quite profitable.
2 The vault is guarded by a team of highly trained accountants. They are, arguably, the most formidable security force on the planet.
3 A dividend is merely a polite fiction, designed to distract investors from the fact that their money is slowly losing value.
4 The official guide is a lengthy and complex document, filled with jargon and disclaimers. It is best read while wearing a blindfold and listening to soothing whale song.

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2026-02-09 19:52