We discuss the benefits of owning the physical precious metals, versus all of the various derivatives that exist. We cover the following topics:

  • Gold and silver vs. the SPDR Gold Trust ETF (GLD) and iShares Silver Trust ETF (SLV), the stock indices, and the leveraged spot price indices.
  • We cover an earlier discussion as to why owning GLD and SLV in your portfolio is fraught with risks.
  • We discuss why it would be better, if you want to own precious metals stocks, to do the work yourself on finding solid companies versus spreading exposure to multiple stocks through the ETFs.
  • The three key factors to valuing companies are: management, project feasibility, and jurisdiction (location of the project and the company office).
  • Some silver companies we discuss are Fresnillo (OTCPK:FNLPF), MAG Silver Corp. (MAG), SilverCrest Metals (SILV), Pan American Silver Corp. (PAAS), First Majestic Silver Corp. (AG), and IMPACT Silver (OTCPK:ISVLF).
  • Why the junior resources miners have not been getting money since 2011 high in gold price, and what needs to change to make those junior miners attractive as a whole.
  • When picking a secure vault provider for physical precious metals, what are the five main components you need to check first before storing your metals through them.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I own physical precious metals.

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