Gold & silver
Silver ETF: gold's more volatile sibling
Silver is part monetary metal, part industrial commodity. That dual role makes its price more volatile than gold and more sensitive to the business cycle.
- Ticker
- PHAG / VZLC
- ISIN
- JE00B1VS3333
- Issuer
- WisdomTree
- Ongoing charges
- ±0,49% per jaar
- Structure
- Physically backed ETC (vaulted silver)
Figures are indicative and checked periodically. Always verify the ISIN, ongoing charges and index in the issuer's latest KID and factsheet before you invest.
Two sources of demand
A large share of silver demand comes from industry: solar panels, electronics, contacts, medical uses. On top of that sits investment demand for coins, bars and ETCs.
Because industrial demand tracks the economy, silver can fall in a recession while gold rises. In a strong precious metals rally, silver often outruns gold.
- Historically clearly more volatile than gold
- Industrial demand ties the price to the cycle
- Smaller market, so shocks hit harder
The gold-silver ratio
The ratio shows how many ounces of silver one ounce of gold costs. Investors use it as a rough relative valuation gauge: a historically high ratio suggests silver is cheap relative to gold, and vice versa.
It is context, not a signal: the ratio can stay extreme for years without reverting.
VAT and costs: a key difference from gold
Physical silver bars and coins are not VAT exempt in the EU the way investment gold is; many countries apply VAT or a margin scheme. A physically backed silver ETC avoids that threshold, which is a practical argument for the exchange-listed route.
Ongoing charges are higher than for gold, typically 0.40% to 0.50% per year, partly due to higher storage and insurance costs per euro of value.
- Physical silver: usually VAT or a margin scheme
- Silver ETC: no VAT threshold on purchase
- Higher annual costs than gold trackers
Position sizing
Given the volatility, investors usually hold silver smaller than gold, as a complement within a total precious metals allocation. Drawdowns of thirty to forty per cent are not unusual here.
Frequently asked questions
Why is silver more volatile than gold?
The market is smaller and industrial demand reacts to the economic cycle, amplifying price swings.
Is there VAT on a silver ETC?
No, the VAT that applies to physical silver does not apply to an exchange-listed backed ETC. Tax on gains still varies per country.
What does a silver ETC cost?
Around 0.40% to 0.50% in ongoing charges per year at the well-known providers.
Is the gold-silver ratio a buy signal?
No, at best a context indicator. It can stay extreme for a long time.
This is information, not investment advice. Past performance says nothing about future returns; you can lose your investment.