GLD vs SLV: Gold Stability Versus Silver Momentum
Silver delivered 65.5% returns in one year but with triple gold's drawdown risk. Which bullion fund suits your portfolio?
Overview
Investors choosing between SPDR Gold Shares (NYSEMKT:GLD) and iShares Silver Trust (NYSEMKT:SLV) must weigh the lower costs and relative stability of gold against the higher volatility and recent momentum of silver.
Precious metals often serve as a hedge against inflation, currency devaluation, or geopolitical uncertainty. While both funds bypass the logistical hurdles of physical storage by holding bullion in secure vaults, they track different commodities with distinct industrial and monetary drivers. This analysis compares how their costs, historical volatility, and assets under management differ for investors.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
Source
Originally published at www.fool.com.