Gold and Silver ETFs Are Less Volatile Than Gold and Silver Stocks

Gold is setting new highs as are the gold and silver exchange-traded funds (ETFs)
and some precious metals mining stocks. streetTRACKS Gold Shares (GLD), an ETF
that owns gold, is up 36 percent since January 3, 2007.

Barrick Gold (ABX) shares the same overall trend as GLD, but the ABX moves are more pronounced. For instance, since January 3, 2007, ABX is up 62 percent, and its November/December 2007 correction (red line on charts) was a 20 percent drop compared to a 6 percent drop for GLD. Since the correction, ABX has increased 28 percent and GLD has gone up only 9.6 percent.

Individual gold and silver stocks will give you a bumpier ride than their ETF counterparts, buy your profits can be higher.