Sprott Physical Gold and Silver Trust
How to Buy Gold and Silver Below Spot Right Now
What's the most cost-effective way to purchase gold and silver? Many investors may believe that coins are the least expensive way to purchase physical gold and silver, but with Sprott Physical Gold and Silver Trust (CEF) currently trading at a discount, investors have the opportunity to purchase gold and silver below spot prices.
This illustration compares $10,000 invested in gold and silver coins versus $10,000 invested in units of Sprott Physical Gold and Silver Trust (NYSE Arca: CEF).
Buy $10,000 in Coins:
Get ~ 90% of Spot Value*
Coins
| Number of 1 Ounce Gold Coins | 5.0915 |
| Number of 1 Ounce Silver Coins | 200.5571 |
| Cost | $10,000.00 |
| Premium Paid Over Spot | 9.32% |
| $ Value Based on Spot Prices | $9,068.00 |
Bars and coins are the most direct way to hold physical precious metals. But this means you are responsible for the ongoing costs of storage and insurance. Bullion dealers also charge you a markup fee on bars and coins, and will discount them when they buy them back. It's also not easy to trade bars and coins.
Buy $10,000 in CEF:
Get ~ 105% of Spot Value*
CEF
| Equivalent Ounces of Gold | 5.6142 |
| Equivalent Ounces of Silver | 253.7559 |
| Cost | $10,000.00 |
| Discount Paid Under Spot | 4.80% |
| $ Value Based on Spot Prices | $10,479.94 |
Precious metals exchange traded funds, like Sprott Physical Gold and Silver Trust (CEF), are a popular, alternative way to gain exposure to precious metals. They provide the convenience of direct ownership without the costs of storage and insurance, and provide the daily liquidity of an exchange traded security.
Sprott Physical Gold and Silver Trust
For decades, investors have trusted Sprott's expertise in managing precious metals investments. In 2018, Sprott strengthened its position as a global leader by acquiring the Central Fund of Canada, one of the world's largest and most storied physical precious metals funds. Sprott Physical Gold and Silver Trust (NYSE ARCA: CEF) adds another world-class option for investors to own precious metals.
*Hypothetical example shown for illustrative purposes only. The discount to net asset value is subject to change based on market conditions. The illustration compares $10,000 invested in gold and silver coins versus units of Sprott Physical Gold and Silver Trust (NYSE Arca: CEF). The number of coins purchased reflects the current gold/silver ratio of metals held in CEF. The example assumes spot gold is $1,200 per ounce and spot silver is $14.75 per ounce (based on prices on or about October 1, 2018).
Here is how the figures are derived:
1) 5.0915 gold coins at $1,257.00 = $6,400
2) 200.5571 silver coins at $17.95 = $3,600
3) Total Cost of Coins = $10,000
Total Value of Gold/Silver in Coins = $9,068
1) Buy 852 units on NYSE at $11.737 = $10,000
2) CEF provides you with a pro-rata share of the Trusts’ underlying metals: 852 units is equivalent to owning 5.6142 ounces of gold and 253.76 ounces of silver.
3) Value using spot metals prices:
a) 5.6142 ounces of gold x $1,200 = $6,737.04
b) 253.7559 ounces of silver x $14.75 = $3,742.90
4) Total Cost of CEF = $10,000
Total Value of Gold/Silver in 852 CEF Units = $10,479.94
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.