5 Precious Metals That Hold Steady Value in the Market

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Precious metals are a distinct asset class that many investors use to hedge other investments they may hold, such as stocks and bonds. This is because precious metals are often considered “safe harbor” assets to which investors flock when uncertain times afflict other markets.

As a stand-alone investment, precious metals can be a bit volatile for the average investor. This is because unlike stocks, which rise and fall based on earnings and future projections, precious metals typically fall based on harder-to-predict factors such as inflation, market sentiment and speculation.

5 Best Precious Metals ETFs

Exchange-traded funds are often a good place to start for the average investor looking to own some precious metals. While no single precious metals ETF is “the best,” on the whole they offer a wide variety of ways to access the asset class.

Here’s a look at some that you may wish to discuss with your financial advisor about adding to your portfolio.

1. SPDR Gold Shares (GLD) 

• Assets: $56 billion 
• Expense ratio: 0.4%
• Year to date returns: 29.81%

GLD hit the stock market in 2004. It was the first U.S.-listed and traded gold ETF, and is backed by physical bullion. Having more than $50 billion in assets makes it a great addition to your portfolio. GLD also has a low 30-day median bid-ask spread of 0.01%.

2. iShares Silver Trust (SLV)

• Assets: $10 billion 
• Expense ratio: 0.50%
• Year to date returns: 22.16%

Like GLD, SLV has been around for a while, which makes it appealing to investors. It was first traded in 2006, and is the largest trust on the market. 

3. Abrdn Physical Platinum Shares ETF (PPLT)

• Assets: $997 million
• Expense ratio: 0.60%
• Year to date returns: 0.25%

If you’re looking to get into the precious metals game for a little bit less cash, platinum — or PPLT — is a great option. Abrdn specifically is a U.K.-based asset management firm said to have very high commodities expertise. 

4. iShares Gold Trust (IAU)

• Assets: $29,398,500
• Expense ratio: 0.25%
• Year to date returns: 21.73%

Another solid way to invest in gold is the iShares Gold Trust. It’s also much cheaper than GLD. Right now, GLD is selling for $231.60 a share, versus IAU for $47.35 a share.

5. SPDR Gold MiniShares Trust (GLDM)

• Assets: $8,636,650
• Expense ratio: 0.10%
• Year to date returns: 21.80%

GLDM is another way to get in on gold without spending too much. At $49.65 a share as of writing this, it’s an economical way to invest in a precious metal. It also has a really low expense ratio, which is more good news for investors. 

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The Bottom Line

Investing in precious metals can be volatile, and it’s not for everyone. Using an ETF allows investors to focus on the specific areas of the precious metals market in which they’re interested without having to deal with storing their own gold bullion or selecting a specific foreign miner, for example. But you’ll have to do some homework, because not every well-known mutual fund company offers a precious metals ETF.

Before you invest in any of the ETFs listed above, be sure to speak with a financial advisor regarding your investment objectives and risk tolerance.

John Csiszar contributed to the reporting for this article.

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