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Gold ETFs and Silver ETFs are exchange-traded funds that offer investors the opportunity to invest in precious metals like gold and silver, respectively.

A gold ETF is a fund that invests in gold bullion and aims to track the performance of the price of gold. Similarly, a Silver ETF invests in silver bullion and tracks the performance of the price of silver. The units of these ETFs are traded on stock exchanges and can be bought and sold like any other stock.
Limitations of the traditional approach:
Traditionally, investors have preferred to purchase the physical metal. However, there are a few limitations to the same:
•It is difficult for small investors to verify the purity of the metal. Getting the purity certification adds a lot to the cost of acquisition, which in turn brings down the investment return.
•Storage is costly and cumbersome, especially if the quantity purchased is large.
•Theft is a serious risk if the metal is kept at home.
•Holding wealth in the form of gold or silver (like many other non-financial assets) would be subject to a wealth tax beyond a certain limit.
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