SPDR Gold Shares (GLD) and abrdn Physical Silver Shares ETF (SIVR) provide investors with a convenient channel for allocating to physical precious metals. The differences between the two in terms of expense ratios, price fluctuations, and long-term returns essentially reflect the distinct market logics of gold and silver—gold emphasizes its store-of-value function, while silver incorporates the elasticity of industrial demand. Based on long-term return rates, fee levels, and current industrial demand trends, SIVR appears relatively prominent in terms of allocation value in 2026, but investors still need to make decisions based on their own risk tolerance, tax status, and overall asset allocation objectives. Regardless of which product is chosen, precious metals ETFs can play a role as risk hedges within a diversified investment portfolio.
In terms of holding costs, abrdn Physical Silver Shares ETF holds an advantage, with an expense ratio of 0.30%, compared to SPDR Gold Shares at 0.40%, meaning the latter carries a slightly higher cost of entry into the precious metals market.
At the portfolio level, SPDR Gold Shares was established in 2004 and aims to track the spot price of gold by holding physical gold bars in vaults, with its portfolio consisting entirely of gold. The fund provides investors with a liquid trading vehicle that avoids the storage and logistics challenges associated with physical gold. Similarly, abrdn Physical Silver Shares ETF, founded in 2009, focuses on the silver market, with a portfolio composed entirely of physical silver, and its price is directly linked to the spot price of silver.
Over the past two years, both gold and silver prices have experienced significant increases. Gold prices doubled during this period, benefiting from investor demand for its historic inflation-resistant characteristics, while silver prices have nearly tripled since the start of 2025, driven in part by gold’s upward momentum and in part by industrial demand from the renewable energy sector.
It is worth noting that although both ETFs are backed by physical metals, U.S. investors need to understand that their tax treatment differs from that of ordinary stocks. Capital gains generated by these funds will be treated as collectible gains, which are typically subject to higher tax rates than those on stocks. Holding them through tax-advantaged accounts such as an Individual Retirement Account (IRA) can avoid this tax burden.
From a long-term performance perspective, silver’s returns may exceed some investors’ expectations. Over the past one, three, five, and even ten years, silver has outperformed gold, largely due to its extensive industrial demand, particularly in the rapidly growing renewable energy sector. Specific data show that over the past decade, SIVR has delivered a cumulative return of 12%, while GLD has returned 11.4%.
For investors who are optimistic about the continuation of the precious metals rally or who wish to add hedging tools to their overall portfolios, SIVR demonstrates certain advantages in terms of fees, long-term returns, and support from industrial demand. Although precious metals prices have recently experienced corrections, silver’s dual nature—as both a safe-haven asset and an industrial commodity—may provide additional growth momentum. Of course, gold’s status as a traditional safe-haven asset remains solid, and its market liquidity and historical recognition continue to be attractive.
