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 approximately $10,000 invested in gold and silver coins versus $10,000 invested in units of Sprott Physical Gold and Silver Trust (NYSE Arca: CEF).
|Number of 1 Ounce Gold Coins||4|
|Number of 1 Ounce Silver Coins||187|
|Premium Paid Over Spot||9.98%|
|$ Value Based on Spot Prices||$9,084.61|
Bars and coins are the most direct way to hold physical precious metals. But this means you are responsible for the ongoing costs of storage and insurance. Bullion dealers also charge you a markup fee on bars and coins, and will discount them when they buy them back. It's also not easy to trade bars and coins.
|Equivalent Ounces of Gold||4.624|
|Equivalent Ounces of Silver||208.7894|
|Discount Paid Under Spot||3.76%|
|$ Value Based on Spot Prices||$10,376.08|
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.
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 $1,475 per ounce and spot silver is $17.03 per ounce (based on prices on or about September 30, 2019).
Here is how the figures are derived:
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