Friday, March 5, 2010

Sprott Physical Gold Trust (NYSEArca:PHYS) Value

Sprott Physical Gold Trust

The value of the Sprott Physical Gold Trust (NYSEArca:PHYS) is probably not in its attraction because of gold, but rather bacause of the low fees of the company, where the management expense ratio stands at 0.45 percent.

Sprott raised about $400 million from their IPO this week for the gold fund, and so have a nice start to their introduction to the public markets.

In contrast to similar offerings, the costs of the Trust are relatively low, and when considering similar performance of their competitors, it's the low cost company which usually delivers the best performance for you, all other things being equal.

The Royal Canadian Mint is where the physical gold of the Trust is held, and those holding units can redeem those units for physical gold if they choose.

Sprott Physical Gold Trust trades on NYSE Arca and the Toronto Stock Exchange.

Sprott Physical Gold Trust

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