Gold/Silver Stocks, ETFs or Physical Gold And Silver?

woman thinking of investing in gold and silver

“With so many options to invest in with precious metals, how do you decide whether to invest in gold and silver stocks, ETFs, or physical gold & silver?”

Gold/Silver Stocks

Investing in gold and silver stocks usually consists of purchasing shares in companies that may produce, explore, or even refine gold and silver. These gold and silver stocks have greatly benefited from the rise in the price of gold and silver during the last 25 years. It’s true that some stocks have made decent returns for investors. But the fact that you don’t own a physical product will never change.

Should you decide to invest in a precious metals stock, you are relying on that specific company to be able to make profits regardless of the price of gold or silver. If the price of gold or silver rises, but the cost associated with managing the company also rises, then the mining company’s stock can lose value. The most important thing to remember about gold/silver stocks is that these stocks do not always reflect the actual price of gold or silver. In fact, the value of some of the stocks may very well be disconnected from the real gold or silver market.


An exchange-traded fund (ETF) is the same as a mutual fund. The ETF tracks an asset or an index of assets. A silver ETF may consist of various silver assets, including mining companies and other companies associated with gold/silver production or refinement. ETFs have become very popular in the last 25 years as money has continued to pour into these funds. Investing in ETFs may seem like an attractive path, but ETFs lack some fundamental qualities that only come with owning physical gold and silver. Specifically, physical ownership is not possible with ETFs.

ETFs consist of derivatives and contracts. They are redeemable for cash – only. At no time do you own any physical gold or silver products? Also, ETFs never actually possess the quantities of physical gold or silver they need in order to back their contracts entirely. Also, because you are paying a financial institution to manage your ETFs, the value of your ETF may not follow the price of the bullion you are trying to invest in. Those management fees can have a substantial and negative impact on the value of your investment. You also don’t have any insulation from the inherent risks of the financial system.

physical gold and silver bullion

Paper Gold/Silver vs. Real Gold/Silver

If part of the reason you’re interested in investing in precious metals is as a hedge against an economic downturn or black-swan events, there is no substitute for owning physical gold and silver.

Investment in ‘paper gold’ may seem like an effective way to gain exposure to gold and silver. However, paper gold will never replicate the control and assurances that come from physical ownership.

In the event of a significant crisis or systemic failure, when the dust settles, paper gold will be little more than a piece of paper. A bar of gold will always be a bar of gold.

Physical Gold & Silver are the Answer

Physical gold and silver are a simple solution to precious metals ownership. Physical metals carry no third-party risk; they cannot be printed at will by a bank and are real tangible property that cannot be diluted. Physical precious metals are proven assets that have withstood the test of time over thousands of years.

Gold and silver have maintained their value through times of market volatility, inflation, political turmoil, terrorism, war, global pandemics, and currency devaluation. Meanwhile, as inflation and the continued devaluation of paper currency continue to erode our purchasing power, precious metals continue to be a reliable source of protection that continues to shield investors from potentially destructive forces.

At the Oxford Gold Group, we offer services to go above and beyond any other precious metals firm. We respect all of our clients’ individual needs and have focused our efforts to provide all of our clients with the tools necessary to make sound financial decisions that will benefit their families for generations. Our focus is to give every investor the opportunity to invest in a tangible asset for the portfolios.

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