Sprott Physical Gold and Silver Trust

Buy Gold and Silver Below Spot

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 ~91% of Spot Value*

Gold and Silver Coins

Coins

Number of 1 Ounce Gold Coins 5
Number of 1 Ounce Silver Coins 161
Cost $10,000.00
Premium Paid Over Spot 9.09%
$ Value Based on Spot Prices $9,086.60

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 ~103% of Spot Value*

Sprott Physical Gold & Silver Trust

CEF 

Equivalent Ounces of Gold 5.1125
Equivalent Ounces of Silver 230.933
Cost $10,000.00
Discount Paid Under Spot 3.25%
$ Value Based on Spot Prices $10,325.49

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.

Find out more

 

*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 $1,315 per ounce and spot silver is $15.60 per ounce (based on prices on or about February 28, 2019).

Here is how the figures are derived:

Buy $10,000 in Coins
1) 5 gold coins at $1,382.00 = $6,910.00
2) 161 silver coins at $19.19 = $3,089.59
3) Total Cost of Coins = $10,000
Total Value of Gold/Silver in Coins = $9,086.60
Buy $10,000 in CEF
1) Buy 777 units on NYSE at $12.87 = $10,000
2) CEF provides you with a pro-rata share of the Trusts’ underlying metals: 777 units is equivalent to owning 5.1125 ounces of gold and 230.933 ounces of silver.
3) Value using spot metals prices:
 a) 5.1125 ounces of gold x $1,315 = $6,722.94
 b) 230.933 ounces of silver x $15.60 = $3,602.55
4) Total Cost of CEF = $10,000
Total Value of Gold/Silver in 777 CEF Units = $10,325.49

 

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