Exchange-traded funds (ETFs) for both Gold and Silver are considered to act as a safeguard against rising inflation and market downturns.
Exchange-traded funds (ETFs) for both Gold and Silver are considered to act as a safeguard against rising inflation and market downturns. In a nutshell, Gold ETFs are securities that track the price of domestic physical gold and are units representing actual gold that may be in paper or dematerialized form. It is possible to buy and sell gold ETFs much like stocks, which is often more advantageous if you want to invest in physical gold. One gramme of gold is equal to one unit in the gold ETF, and this unit is guaranteed by 99.5% pure physical gold. Whereas, Silver ETF is an exchange-traded fund that invests its underlying assets up to 95% of its corpus in physical silver that tracks the price of silver in the stock exchanges. Silver is in high demand throughout industry, investments, and jewellery; as a result, its price is more sensitive to economic swings than gold's, making silver a more powerful hedge against inflation when economies are on the rise. However, because of its lower demand than silver, gold is less impacted by economic downturns. Both ETF categories help investors diversify their portfolios and lower storage costs. However, some funds, including Edelweiss Gold & Silver ETF and Motilal Oswal Gold & Silver ETFs FoF, invest in both asset classes. So let's find out where investors should invest if they want to sparkle their personal finance during Diwali by investing in a Gold or Silver ETF.