Finally, Precious Metals ETFs I Can Safely Recommend (GLD, SGOL, SIVR)

The solution could lie in Switzerland
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In all the years I've recommended owning precious metals, I've preferred people buy and store actual gold, silver, or platinum.

But this is not always possible or convenient for at least some portion of people's money. That's why, since the first gold exchange traded fund came out a few years ago, I spotlighted it.

In the years since then, both good and bad things have happened. Take the bad first: There have been repeated rumors and warnings that the storage facilities for ETFs do not contain all the metals that are supposed to be there. Second, these ETFs have been attacked by metals bulls for being able to use their metals to short them, or loan them out.

The first ETF and the most popular is the SPDR Gold Trust (NYSE: GLD). Aside from all the questions raised above, this is clearly more of a "tracker" ETF than a place where you can decide easily buy and then claim physical gold. In fact, you can take physical delivery of the gold in GLD, but only if you hold at least 100,000 shares of it. Since each share of GLD is equal to one-tenth of an ounce, this means you have to have the equivalent of at least 10,000 ounces.

At current prices of about $1,200 per ounce, this would mean you'd have to have $12 million worth of gold to take delivery of any actual gold with GLD. I say if you've got that kind of money to put into gold, there are far better and safer ways to go.

Up to now, even the best ETFs I've been able to find have not been perfect. Two newer funds, ETFS Gold Trust (NYSE: SGOL) and ETF SECURITIES USA LLC ETFS SILVER TRUST (NYSE:SIVR), are probably all right for gold and silver. People have pointed out that they never say exactly where the metals are stored, just "London Bullion Market Association-approved storage vaults." But I've heard bad rumors about banks in this LBMA system. I have no way of knowing how serious these rumors are, but I've been looking around for alternatives.

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