Sprott Physical Gold and Silver Trust

CEF

Market cap $7.78B

The Federal Reserve's recent rate cut of 25 basis points could amplify gold's current rally. Prices have already broken through the $3,700 price mark, and another record high could hinge upon how aggressive rate cuts will be in the coming months.

The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn't done since 2011.

Central banks' willingness to buy more precious metals should help buoy prices for both gold and silver. Around the globe, central banks continue to quench their thirst for both, providing investment opportunities in ETFs with exposure to both metals.

It may be a good period for gold again—but the economic context does not rule out a continuation of the trend for silver either. In this scenario, CEF positions itself as a weighted solution in the form of a closed-end fund for exposure to both precious metals. Today, it trades at a 4% discount to NAV and offers accessible management costs (0.48%), following the motto "don't overpay."

Sprott Physical Gold and Silver Trust (CEF) offers direct exposure to both gold and silver, providing diversification versus single-metal funds. CEF currently trades at an attractive discount to its net asset value, enhancing its appeal as a value investment opportunity. My previous bullish stance on CEF in 2023 was validated by strong performance, reinforcing my confidence in the fund.

Here's a surprise from a die-hard closed-end fund (CEF) fan like me: Sometimes CEFs aren't your best bet.

TORONTO, May 02, 2025 (GLOBE NEWSWIRE) -- Sprott Asset Management LP (“Sprott Asset Management”), a subsidiary of Sprott Inc., on behalf of the Sprott Physical Gold and Silver Trust (NYSE: CEF) (TSX: CEF / CEF.U) (the “Trust”), a closed-ended mutual fund trust created to invest and hold substantially all of its assets in physical gold and silver bullion, today announced that it has updated its at-the-market equity program to issue up to U.S.$250 million of units of the Trust (“Units”) in the United States and Canada.

I'm reiterating a 'buy' for CEF due to its balanced precious metals exposure, but noting Silver's underperformance against Gold and Copper. Gold is currently overheated with a potential pullback, while Silver is undervalued and poised for a potential aggressive rotation. CEF's Gold to Silver ratio has shifted from 2:1 to over 3:1, making PSLV a better play for a bullish Silver thesis.

Gold and silver posted significant gains in 2024, with gold up 27.47% and silver up 21.41%, continuing their bullish trends into 2025. Tariffs imposed by the Trump administration on major trading partners have added volatility but supported the bullish trends in gold and silver. Gold's steady appreciation and lower volatility make it a reliable investment, while silver's higher volatility and industrial demand offer speculative opportunities.

A rising dollar has been applying downward pressure on gold and silver following the U.S. presidential election. But market experts are still forecasting record prices for both precious metals heading into 2025.