Which is more worth holding, gold or silver? For investors choosing between the iShares Gold Trust (IAU) and the iShares Silver Trust (SLV), the key lies in balancing costs, stability, and return potential. Both ETFs are issued by iShares and are backed by physical precious metals as their underlying assets, saving investors the trouble of storage, security, and insurance. Although they belong to the same commodities family, gold and silver respond very differently to industrial demand and macroeconomic conditions.
Cost and Scale: IAU Is Clearly Cheaper
In terms of expense ratios, IAU is more suitable for long-term holding. Its expense ratio is 0.25%, half that of SLV (0.5%). Over the long term, this cost difference will gradually manifest in net asset value performance, especially during periods of sideways movement in precious metal prices. In terms of scale, IAU manages approximately $72.7 billion in assets, while SLV manages about $37 billion. Neither ETF pays dividends. As of April 27, 2026, IAU’s total return over the past year was 41.3%, while SLV’s reached 127.4%. Looking at beta (volatility relative to the S&P 500), IAU has a beta of 0.17, while SLV has a beta of 0.47, indicating that the latter experiences significantly larger price fluctuations.
Underlying Assets: Gold Seeks Stability, Silver Is More Sensitive
IAU was launched in 2005 and tracks gold prices through a physical gold trust, holding no individual stocks. SLV was launched in 2006, tracks the spot price of silver, and directly holds physical silver bars. In 2025, both gold and silver saw sharp rises, but silver’s gains were nearly double those of gold, followed by a steep decline in early 2026. This difference stems from silver’s dual nature: gold is primarily driven by investor sentiment, while silver also faces substantial industrial demand from solar panels, AI data centers, and electronic products, which amplifies both its upward and downward price movements.
Implications for Investors
IAU and SLV are both straightforward physical trust products—no dividends, no leverage, no complex structures, and prices closely aligned with spot markets. The choice depends on the investor’s own outlook on the metals themselves. Gold has historically exhibited more stable performance and greater resilience during economic downturns, making it suitable for investors looking to use precious metals as a portfolio stabilizer. SLV, on the other hand, is more volatile and has a higher expense ratio, making it more appropriate for those willing to take on higher risk in exchange for greater upside potential during a bull market in precious metals.