I can share your frustration and your point of view on the ETFs.
My perspective is they are so big because of ignorance, lack of understanding, and the 21st century sickness of "the easy way out".
How many people do you know understand that metals are in essence fractionally covered at large depositories? That when push comes to shove many of the new ETFs are simply bets on the direction of the underlying comodity, i.e. derivatives. It has been demonstrated many times that the JMP managed ETFs and others do not have to have physical, just entries in some layers of custodial books.
How many people do you know that can or will take the time to evaluate miner stocks? Even then you have the risk of shady dealings on the part of management. One of my juniors recently gell over 25% because the management pretty much lied about the resources and were called only upon trying to file the NI 43-101. I try hard to assess not only the mining financials, potential, properties etc, but also the management. Now I know better about these guys. I am not the greatest in the room evaluating miner stocks, but I do a lot of research and Juniors are VERY dificult.
Given that the ETFs are very mainstream, then large institutions, funds, pension funds, etc must stay in the generally accepted investment vehicles. Buying ETFs will not get a manager fired. It is like a fund investor investing is Goldman Sacks. He will never be questioned. But just let him invest in the Podunk Gold Mines of Lower Bolivia andhe will be crucified if it doesn't perform.
