Gold and silver ETFs

Physically backed ETFs such as ETPMAG are designed to hold real silver bars in secure vaults (in this case with J.P. Morgan in London), with the metal allocated to the fund and typically audited and listed on a bar register. This structure is different from futures markets like COMEX, where large volumes of “paper” contracts trade relative to the amount of physical metal and most positions are settled financially rather than through delivery.

However, while these ETFs are generally considered reliable for gaining price exposure to precious metals, they still rely on financial infrastructure such as custodians, auditors and market liquidity. For this reason, many investors view them primarily as liquid trading or investment vehicles, whereas holding physical bullion directly is often seen as a better hedge against extreme systemic or financial crises.

• Ultimately, we believe physically backed ETFs like ETPMAG are generally safe, but physical bullion is the ultimate protection against extreme systemic risk.