Sprott Physical Gold and Silver Trust

Central Fund of Canada Shareholders

Sprott Physical Gold and Silver Trust began trading on January 16, 2018, on the NYSE Arca (Symbol: CEF) and the Toronto Stock Exchange (Symbol: CEF.U in U.S. dollars and CEF in Canadian dollars).

The FAQ below will answer many of your questions. If you need additional help please contact the Sprott Team at 888.622.1813, or email bullion@sprott.com.

The launch of Sprott Physical Gold and Silver Trust marks the successful completion of Sprott’s acquisition of the common shares of Central Fund of Canada. Sprott will administer and manage the Central Fund of Canada’s assets, and Central Fund of Canada’s class A shareholders are now unitholders of the Sprott Physical Gold and Silver Trust.

Benefits to Shareholders

Sprott Physical Gold and Silver Trust provides investors with the unique benefits of Sprott's other industry-leading physical bullion trusts, including fully allocated precious metals; redeemable for physical metals; trustworthy storage; potential tax advantages; easy to buy, sell, and own; a liquid investment. The creation of the Trust also reinforces Sprott’s commitment to providing best-in-class precious metals investments for clients and strengthens our position as one of North America’s leading managers of precious metals funds.

FAQ 

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  • Who is Sprott?

    Sprott Asset Management LP ("Sprott") is a global asset manager based in Toronto, Canada that provides investors with access to highly-differentiated precious metals and real assets investment strategies.

    Sprott’s offerings include unique physical bullion trusts, mining ETFs, actively managed equity strategies, as well as specialized private equity and debt strategies.

  • How does the Sprott Physical Gold and Silver Trust (the Trust) compare with the former Central Fund of Canada (CFCL)?

    World Class Physical Bullion Fund
    The new Trust is a highly-liquid, world-class bullion vehicle managed by a firm with a globally-recognized precious metals franchise.

    Market Price Expected to Trade Closer to Net Asset Value
    Based on the historical trading of our Physical Bullion Trusts, we expect that the market price of the Trust will trade more closely to the value of the underlying metals in contrast to the recent trading experience of CFCL. 

    Option to Redeem for Physical Metals*
    Investors in the new Trust have the option to redeem their units for physical bullion, as part of the physical redemption feature found in all of Sprott’s physical bullion trusts.

    Lower Counterparty Risk
    The Trusts’ physical gold and silver bullion assets will be custodied by the Royal Canadian Mint (“Mint”) to minimize counterparty risk. The movement of gold and silver from the current storage provider to the Mint will commence immediately and will take several months to complete.

    Greater Market Profile
    Unitholders in the Trust may benefit from Sprott’s significant ongoing marketing support to drive liquidity and interest in the Trust.

    *Subject to minimum requirements.

  • Do CFCL shareholders need to take any action?

    CFCL shares will be automatically converted to shares of the new Sprott Physical Gold and Silver Trust. All brokerage firms and dealers of record will update the name of the Fund in shareholder statements and accounts.

  • Is the transaction a taxable event for investors?

    No. The transaction is being implemented under the Business Corporations Act (Alberta) on a tax-deferred basis.

  • Where will units of the Sprott Physical Gold and Silver Trust be traded?

    Sprott Physical Gold and Silver Trust trades on the NYSE Arca under the symbol (CEF) and on the Toronto Stock Exchange under the symbol (CEF.U for U.S. dollars).

  • When will the Sprott Physical Gold and Silver Trust trade?

    Effective January 16, 2018, the Trust will trade on the NYSE Arca with the ticker symbol CEF and the Toronto Stock Exchange (TSX) with the ticker CEF.U.

  • Will there be an option to own the Trust in Canadian dollars on the TSX?

    Yes, the Trust trades in Canadian dollars on the TSX with the ticker CEF.

  • Who can I contact for more information?

    Shareholders who have questions regarding Sprott are encouraged to visit sprott.com or email us at bullion@sprott.com. You may also contact a member of the Sprott Team at 888.622.1813.

Reasons to Own CEF

Why Own Sprott Physical Gold and Silver Trust View Infographic


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Video: Alternative Investing with Gold and Silver - March 15, 2018
Ed Coyne and Trey Reik discuss the importance of a precious metals allocation of gold and silver, and how it can potentially improve risk-adjusted returns. 


The Sprott Physical Gold and Silver Trust is generally exposed to multiple risks that have been both identified and described in the Management Information Circular. Please refer to the Management Information Circular for a description of these risks.

Past performance is not an indication of future results. The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action. Sprott Asset Management LP is the investment manager to the Sprott Physical Gold & Silver Trust (the “Trust”). Important information about the Trust, including the investment objectives and strategies, applicable management fees, and expenses, is contained in the Management Information Circular. Please read the document carefully before investing. There are ongoing fees and expenses associated with owning units of a Trust. The Trust must prepare disclosure documents that contain key information about the Trust. You can find more detailed information about the Trust in these documents. Investment funds are not guaranteed, their values change frequently. This communication does not constitute an offer to sell or solicitation to purchase securities of the Trust. The information contained herein does not constitute an offer or solicitation to anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Sprott Asset Management LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

 

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