Silver (and Gold) ETFs

DingoEgret

Good evening everybody. This is my first post on this forum so please be  forgiving. I would like to invest in silver and know that one of methods is joining (?) ETFs. I do not know though how it works. Do I need to have an account with my chosen ETF, do I pay commission, will they verify me, can I sold my precious metals at any time, what ETFs are trustworthy?

I would be really grateful for any suggestions because as I mentioned above this completely new territory for me and I feel lost and confused. Thank you in advance.

EdGasketTheSecond

For ETFs you need to open a sharedealing account or S&S ISA and then you buy the ETF shares as you would any other share. The best Silver ETfs for UK investors are WisdomTree PHSP and iShares SSLN. These choices are based on the most actively traded and lowest spreads. If you can invest in USD then the Sprott funds look good being backed by physical held at the Canadian Mint.

Have you considered buying physical silver and gold through coins or bars and have you considered BullionVault as an alternative to ETFs?

DingoEgret

That's very interesting what you are saying. Maybe ETFs are too complicated for me as a beginner.

Buying phyical silver or gold is quite silver or gold can be risky. I mean I would have to keep it somewhere and my house is not the best option. Besides I am not sure where I can buy it from, how it is delivered, how I can sell it later.

BullionVault is most likely my favourite option. I just need to read a little bit more about them and their rules. It looks easy to invest and sell gold and/or silver in case I want to. Have you got any experience with BullionVault EdGasketThe Second?

tacpot12

I would make sure you understand what happens to your silver if BullionVault go bust or decide to stop trading. 
I had a look at the movement of the price of silver in March of this year when the pandemic hit; silver lost 30% of its value, whereas shares only lost about 20% of their value. And the price of silver today is up 50% on the price the at the start of the year, but it is still a good deal lower than it was in 2011. Silver doesn't look like a good hedge against bad times, or a good investment over the long-term so why do you want to invest in it? 

EdGasketTheSecond

DingoEgret said:

That's very interesting what you are saying. Maybe ETFs are too complicated for me as a beginner.

Buying phyical silver or gold is quite silver or gold can be risky. I mean I would have to keep it somewhere and my house is not the best option. Besides I am not sure where I can buy it from, how it is delivered, how I can sell it later.

BullionVault is most likely my favourite option. I just need to read a little bit more about them and their rules. It looks easy to invest and sell gold and/or silver in case I want to. Have you got any experience with BullionVault EdGasketThe Second?

Buying physical would be from a dealer or Mint e.g. Royal Mint, Atkinsons. It comes by post but is insured. Selling can be done similarly but then you'd have to insure it which could get expensive. Otherwise you'd have to go to a bullion dealer in person.

BullionVault are not FSCS protected so you have to do your own due diligence and decide if they are for you. When I looked into BullionVault, I discovered the following, mostly from their website but some from elsewhere:

They have been going for approx. 18 years.

From BullionVault website:

1) Their insurance is with Marsh:

Marsh | Global Leader in Insurance Broking and Risk Management

Marsh | Global Leader in Insurance Broking and Risk Management Marsh is a global leader in insurance broking and risk management, bringing global, national, and industry- spec...

Complete Policy can be viewed when signed-in to BullionVault.

2) History: incorporated in 2003.

2 Queen's awards for Enterprise (2009 ansd 2013)

Member of London Bullion Market Association since 2008 (represents the largest of the world's physical bullion market)

3) 38 tons of gold held and 500 tons silver - larger reserves than most central banks they claim.

Well there is a whole load on safety, vaults, and ownership on their website you can read.

e.g.

"While it is in a BullionVault client account at the bank your money - like all money held in bank accounts - is subjected to a risk of the bank's own insolvency - but not BullionVault's.

But BullionVault gold, silver and platinum is yours outright, so there is no credit exposure either to the bank, or to the vault operators, or to BullionVault. All three could fail, and all your bullion would still be yours and would be returned to you in full by a liquidator. This is the essence of direct physical ownership of bullion held through BullionVault's custody arrangement."

Independently of their website I have checked the Galmarley accounts at Companies House. I have confirmed the insurer exists and is legit.

BullionVault is 'The world’s largest online investment gold service'.

So although not FSCS protected they look 'safe' but make your own mind up.

DingoEgret

Thank you very much guys for your word. It's much clearer for me now. I will be watching and learning this market.

coachman12

Good luck with your research, Dingo. I think you have got the best info available from EdGasket.
I would most definitely go for buying bullion and/or coins. Much depends on how much you have available to spend. And, unsurprisingly to many regular posters on this site, I strongly recommend gold by many many miles compared to silver. My gold bullion ( bars and wafers)  and Krugerrands and other coins rose from $1,000 per ounce over the past 4 years up to this year, when gold  reached the $2,000 per ounce mark ;and is forecast to rise to $3,000 by the end of 2021. In the longer term, say 10-15 years, the expert estimates indicate exponential rises to over $12,000 per ounce. All the very best.

todaytom578

The problem is with paper or digital promises of silver is that the paper price can go down when the price of real silver goes up

Type_45

So physical gold ETFs are pretty much not desirable then? I've seldom heard anyone speak glowingly about them. 

bostonerimus

If EFTs are too complicated then I suggest that you avoid buying commodities like silver and gold for now as they can be very volatile and tricky. Educate yourself before you do anything, there is no hurry. Stick to savings, your pension (which you should make sure you understand) and paying down debt.

Type_45

bostonerimus said:

If EFTs are too complicated then I suggest that you avoid buying commodities like silver and gold for now as they can be very volatile and tricky. Educate yourself before you do anything, there is no hurry. Stick to savings, your pension (which you should make sure you understand) and paying down debt.

My question is more about gold ETFs v buying gold sovereigns.

If gold ETFs are a good idea, then which is better out of Wisdom Tree and Invesco?