There are also two other fine companies that I want to diversify into as well. SGOL is the Swiss version of SLV except they really do own the gold and silver, unlike SLV and GLD which leases the gold. Central Fund of Canada (CEF), which holds both gold and silver in the Canadian mint, is also audited on a regular basis. While I own more than my fair share of physical, I like the ease of paper trades and I feel with these four holdings I get the safety of knowing that my gold and silver are not only real but that they are also liquid. To me it’s the best of both worlds.

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The chart below shows that PSLV actually outperformed SLV in the run-up last April. I can only conclude that people, while they want gold and silver as a hedge against the debasement of currencies, they also want the safety of knowing their holding is backed by the underlying asset.

click to enlarge

*http://investingadvicebygeorge.blogspot.com/2011/08/rearranging-gold-and-silver-etfs.html

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Editor’s Note:

• The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
• Permission to reprint in whole or in part is gladly granted, provided full credit is given as per paragraph 2 above