August 15, 2025
Did "Gold Exposure" Rob You Of 27%?
In a year when gold has gained 28%, many gold ETF investors captured far less. Here's why your 'gold exposure' might not be giving you actual gold performance.
Gold had a remarkable year. The metal gained approximately 28% in a recent 12-month period, outperforming most major asset classes. But many investors who thought they owned "gold" actually captured only a fraction of those gains — or in some cases, lost money.
The ETF Trap
When you buy a gold ETF, you're buying shares in a fund. That fund may hold gold, gold futures, gold mining stocks, or some combination. The disconnect between these vehicles and actual gold prices can be significant:
- •Mining ETFs are exposed to management quality, operational costs, and equity market risk
- •Futures-based ETFs face "contango" costs from rolling contracts
- •Even physically-backed ETFs charge management fees that erode returns over time
Three Gold ETFs Lost Money When Gold Rose 28%
It sounds impossible, but it happened. ETFs that invested in gold mining companies saw their holdings underperform — because operational problems, hedging strategies, and general equity market weakness overwhelmed the gold price tailwind.
How STBL Is Different
STBL Gold tokens are backed 1:1 by actual physical gold. When gold goes up 28%, your STBL Gold goes up the same amount — because you own the gold itself, not a derivative of gold. No management fees eating into returns. No futures roll costs. No equity market exposure. Just gold.
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