Sprott: Another Option for Precious Metal Bulls
Investors who are bullish on the prices of precious metals tend to buy a combination of bullion and mining shares. However, there is another option that investors should consider: Sprott Inc. (OTCMKTS:SPOXF)
Sprott is a Canadian asset management company. Its Chair and Chief Investment Officer is the infamous money manager Eric Sprott, who has made fortunes for himself and his clients over the past 12-13 years by keeping them, for the most part, out of traditional stocks and bonds, and investing these funds in gold, silver, and natural resource producers.
Today, Sprott offers an array of mutual funds and hedge funds. It offers private wealth management to wealthy clients, and it is involved in private equity funds. Finally, it has recently launched bullion ETFs, including:
- The Sprott Physical Gold Trust (NYSEARCA:PHYS)
- The Sprott Physical Silver Trust (NYSEARCA:PSLV)
- The Sprott Physical Platinum and Palladium Trust (NYSEARCA:SPPP)
These funds have grown in popularity since their inceptions over the past few years given their favorable tax treatment and relatively simple legal terms.
Asset managers such as Sprott make the bulk of their money by charging a management fee on the money that they manage. The fee is correlated to the amount of money that they manage. So when investing in asset managers, the most important piece of information that you should look at is the type of assets that they manage. If the asset manager invests in assets that you are bearish on, then you should avoid that investment.