Who should invest in Silver ETFs?
For investors looking for diversification or exposure to precious metals, Silver ETFs can be a good fit. They also offer reduced risk as they are backed by physical silver at 99.99% purity. Physical silver needs secure storage, which can increase holding costs. With Silver ETFs, there are no associated storage costs for individual investors. Silver ETFs are more tax-efficient than physical silver and can also be tracked in real-time.
Should you invest in Silver or Silver ETFs?
Silver ETFs can be a cost-effective and hassle-free way to gain access to the silver market. However, they can be a risky proposition as the price of the underlying asset can be affected by multiple factors. If you purchase physical silver, the transportation and secure storage of the commodity becomes your responsibility.
What returns can I get with Silver ETFs?
While the expense ratio of ETFs is usually low, certain costs can apply. The usual costs of trading such as brokerage commissions, the ask-bid spread, and more can eat into your returns.
How are Silver ETFs taxed?
In Canada, Silver ETFs are treated like any other ETFs or conventional mutual funds for tax purposes. This means that you have to pay taxes on any income and capital gains generated from the sale.