SLV vs GDX: Is a Silver ETF a Better Buy Than a Gold Miner Fund in 2026?
2026-08-07 21:21
•Brendan Coffey •The Motley Fool
••••••• ••• Axe Cap view
Why Gold Miners Beat Silver ETFs for South African Investors in 2026
Silver ETFs had a strong run, but gold mining stocks like those in GDX offer more upside and income for rand investors.
Silver’s recent rally caught many off guard, with the iShares Silver Trust (SLV) outperforming gold miners over the past year. Yet, that doesn’t mean South African investors should rush into silver bullion funds. The VanEck Gold Miners ETF (GDX) holds operational leverage—meaning miners benefit more when gold prices rise—and it pays dividends, which silver bullion or SLV don’t provide. For rand investors keeping an eye on AngloGold Ashanti and other resource stocks, miners can cushion rand weakness by benefiting from global gold demand. Plus, South African miners often operate across multiple currencies which helps with diversification. Silver lacks this depth locally and doesn’t generate income. The risk for miners is that costs or operational issues eat into margins or that gold prices falter, but given global uncertainty and inflation concerns, GDX-linked names still offer a better play. this is just our opinion and not financial advice
Buy shares in South African gold miners like AngloGold Ashanti and maintain exposure to GDX for balanced gold sector returns. Avoid silver ETFs like SLV due to limited income and no direct JSE proxy.
- GDX
- AngloGold Ashanti
- USD/ZAR
- A slump in global gold prices
- Operational disruptions at mining companies
7/10
The iShares Silver Trust (SLV) delivered 62.6% returns over the trailing 12 months compared to VanEck Gold Miners ETF (GDX) at 47.3%, but both funds charge similar ~0.5% expense ratios. While SLV provides direct physical silver exposure, GDX offers mining company equity with operational leverage and dividend payments. The article recommends GDX due to its flexibility, dividend yield, and more favorable tax treatment for U.S. investors compared to collectibles taxes on physical silver.
Our take is based on reporting first published by The Motley Fool.