Silver & Gold: A Mostly Harmless Investment Guide

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Silver and Gold Comparison

The universe, as we suspect, is a profoundly improbable place. And within that improbable expanse, people are still attempting to predict the price of shiny metals. Specifically, we’re looking at the iShares Silver Trust (SLV +2.94%) and the Sprott Gold Miners ETF (SGDM +6.53%). One, as the name suggests, is a direct play on the price of silver – a substance with surprisingly few practical applications these days, unless you happen to be a werewolf with a particularly discerning aesthetic. The other invests in companies that dig gold out of the ground, a process that, when you think about it, is rather like the Earth attempting to cough up a particularly stubborn hairball.

A Snapshot (of Cost & Size, Relatively Speaking)

Metric SLV SGDM
Issuer iShares Sprott
Expense ratio 0.50% 0.50%
1-yr return (as of Feb. 14, 2026) 137.63% 149.88%
Beta 0.41 0.53
AUM $44.77 billion $823.11 million

Both ETFs nibble at your returns with a 0.50% annual fee – a small price to pay for the privilege of participating in a market driven by irrational exuberance and occasional panic. The ‘Beta’ figure, which measures volatility relative to the S&P 500, is a bit like trying to measure the speed of a thought – interesting in theory, but ultimately unhelpful. (It’s calculated from five-year weekly returns, which, given the inherent chaos of the universe, is roughly equivalent to predicting the weather on Jupiter.) SLV, with its considerably larger ‘AUM’ (Assets Under Management), has been around longer. Which, in market terms, is like saying it’s had more time to accumulate dust…and investors.

Performance & Risk: A Matter of Perspective

Metric SLV SGDM
Max drawdown (5 y) (37.65%) (45.05%)
Growth of $1,000 over 5 years $2,764 $2,667

The ‘Max Drawdown’ – the biggest dip in value over five years – is a sobering reminder that even shiny metals aren’t immune to gravity. (Or, more accurately, market corrections.) Over five years, a grand invested would have yielded approximately $2,764 with SLV and $2,667 with SGDM. Which, depending on your perspective, is either a modest profit or a tragic waste of perfectly good currency. (It really depends on whether you were hoping to buy a small planet with the proceeds.)

What’s Inside the Vault (and the Mines)

SGDM, launched 11 years ago, invests in 43 companies engaged in the global gold mining industry. Key holdings include Agnico Eagle Mines Ltd. (TSX:AEM.TO), Newmont Corp. (NEM +6.55%), and Wheaton Precious Metals Corp. (TSX:WPM.TO). It’s a diversified approach, which is a bit like saying you’ve spread your bets across multiple improbable outcomes. (Which, let’s face it, is pretty much what investing is.)

SLV, meanwhile, has been offering investors exposure to silver for nearly 20 years. Its holdings consist entirely of physical silver bullion, stored in London. Which raises the question: what exactly is London doing with all that silver? (Probably polishing it. Or building a giant, reflective fortress. One can only speculate.)

For more guidance on ETF investing, check out the full guide at this link.

What This Means for Investors (or, Why You Should Probably Have a Sense of Humor)

Precious metal ETFs, as you might expect, can be a bit volatile. Silver, in particular, tends to swing around more than gold, likely because fewer people actually need silver for anything. (Except werewolves, of course.) Over the long term, however, silver and other lesser-traded metals tend to follow gold’s lead, much like smaller cryptocurrencies shadow Bitcoin (BTC +1.10%). So, in terms of general direction, both ETFs have behaved remarkably similarly in recent years.

Now is a particularly interesting time for precious metals. Gold and silver tend to perform well during periods of economic uncertainty. Tariffs, global tensions, and the general sense that everything is slightly off-kilter have all contributed to a surge in demand. (Which just proves that people will always seek refuge in shiny objects when the world starts to crumble.)

Both SLV and SGDM could be valuable additions to a diversified portfolio. The choice between the two ultimately comes down to whether you prefer silver or gold, and whether you’d rather invest in physical metals or the companies that dig them out of the ground. (It’s a bit like choosing between a hammer and the person who makes the hammers. Both are useful, but one involves more digging.)

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2026-02-15 05:13