Texas-based precious metals dealer GoldSilver.org has issued an advisory to clients regarding variables in performance among different gold and silver investments including exchange-traded funds (ETFs).
The warning comes following a 1 July report that gold and silver ETF holdings have fallen dramatically in recent months.
Company spokesperson Maria Martin says many investors may be unaware that all gold and silver-based products do not trade equally.
“We specialise in physical gold and silver investments, such as coins and bars,” says Martin. “But investments like mining stocks, ETFs and futures contracts work differently. Investors have pulled USD562 million from precious metal ETFs this year. Despite the massive sell-offs the physical gold and silver spot prices have risen almost 10 per cent since December.
“People are buying gold and silver for safety right now, and that usually means holding hard assets as opposed to paper.”
“Gold and silver prices are down almost 30 per cent since 2011, but fears of hyperinflation and dollar devaluation have kept business brisk for gold and silver dealers like GoldSilver.org.
“Savvy investors have lost confidence in paper money, and we feel like the not-too-distant future holds a return to gold and silver as currency,” Martin says.