Sprott is probably one of the easiest and safest ways to invest in physical Gold and Silver without storing it yourself, and also in a spread of minors in the precious metals sector through their ETF products.
Key people ;
Eric Sprott as the name implies founded Sprott back in 1981, and is still the majority shareholder, Eric was an early champion of precious metals investing and through consistent growth with Sprott and his investments in the precious metals sector is now a billionaire,
Rick Rule is senior managing director of Sprott and is also around the billion mark with a life long precious metals career, there are many additional people on Sprott’s team with a wealth of experience in the precious metals industry, and together as a team would be hard pressed to be outdone in knowledge and experience within the industry.
Sprott has around $17 billion under management.
Specifically what we like about Sprott is their physical Bullion trusts and their ETF’s (exchange traded funds)
The physical Bullion trusts are a vehicle to allow investors to purchase shares in physical gold, silver and some other metals which is stored by Sprott in the Royal Canadian Vault.
This allows us as investors to hold the physical precious metals without actually having to store it, this is a great option for those of us who are looking for an alternate way to store wealth in gold and silver but don’t want to have the liabilities that come with it being hidden in our house somewhere.
We currently recommend the “Sprott Physical Gold and Silver Trust” the ticker symbol is “CEF”
Since the share price is reflective of the spot price of gold and silver there is no buy up to price, and being a physical Trust it is more suited for use as a stable store of wealth that will appreciate over time as the current bull market progresses than a high gain prospectus, if gold and silver double then your allocated capital in the physical trust will also double.
if at some point in the future we feel this physical trust is no longer viable for some reason we will update our recommendations accordingly.
We also recommend the Sprott Gold Minors ETF (ticker symbol SGDM)
and the Sprott Junior Gold minors ETF (ticker symbol SGDJ)
Both of these exchange traded funds are exceptionally well put together from a basket of some of the best gold mining companies out there. The Sprott Gold minors ETF is a basket of first and mid tier market cap minors and the Sprott Junior Gold minors ETF is a basket of the junior speculative minors and explorers.
Specifically what we like here is the key difference between the metrics used for selecting which minors make the basket when compared to other ETF’s
The metrics used by Sprott look at not just the current revenue and profitability of the given mining companies but take into account metrics like actual proven reserves and years left in the mine. This is of utmost importance as some very profitable and high earning companies in the industry (and in other ETF’s) have mines which are close to the end of their life and therefore do not make a good investment target despite their current profits.
Again there’s no buy up to price here as these ETF’s track a basket of shares from a spread of mining companies.
ETF’s are a great way to gain broad exposure to minors within the precious metals industry.
The above products are available through the TSX, and several are also available on the NYSE.
Until next time,
Frank
