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I have always been leery of the two big exchange traded funds, SLV and GLD, 
because they lease the gold and silver that they sell you. I much prefer the ETFs SGOL, CEF, PSVL and PHYS which actually own the gold and silver they sell you and store it for you segregated vaults.
The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article by George Maniere (investingadvicebygeorge.blogspot.com)
I recommend that you move away from GLD and SLV and move instead into the physical funds such as the silver Sprott fund (PSLV) and the gold Sprott fund (PHYS). These funds are not true ETFs. They are closed ended funds which means you are not buying shares, but rather units. (The knock on the Sprott funds is that they carry a hefty premium, but that is only the case if you are going to take possession of the gold or silver.) The physical gold and silver is audited every year and you know that you will not wake up one morning to find that the gold and silver “leased” to GLD and SLV are now not worth the digital bytes they are printed on…
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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