Sprott Physical Gold and Silver Trust

CEF

Market cap $8.03B

Gold prices hit an apex in October before taking a breather as 2025 winds down — a chance for investors to buy the dip. This could be a golden opportunity to get exposure to a pair of ETFs before another rally ensues: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM).

The holiday season not only presents an opportunity to spend time with loved ones, it also allows investors to tilt their portfolios towards assets that can capture short-term upside. One of those is gold.

Sprott Physical Gold and Silver Trust remains a buy due to its dual gold/silver exposure and current 5% discount to NAV. Gold's recent pullback presents a buying opportunity, supported by ongoing central bank accumulation, especially from emerging markets. A weakening USD and potential for accelerated Fed rate cuts create a favorable backdrop for both gold and silver prices, benefiting CEF.

In cases where an asset is in the midst a strong rally, investors are typically gripped with the fear that they already missed out on the major move. That doesn't appear to be the case with gold, which should be approached with a strategic allocation strategy in mind as opposed to simply chasing gains.

Sprott Physical Gold and Silver ETF remains a solid 'buy,' especially at a 5% discount to NAV, offering gold and silver exposure. CEF has outperformed gold since April, benefiting from a higher silver allocation and favorable gold/silver ratio trends. The current pullback in gold and silver is seen as healthy; fundamentals for both metals remain strong amid global monetary uncertainty.

So today, I'll explain why this deal matters, how Uncle Sam isn't the only major player anymore – and how this fits into the much larger pattern I've been tracking for months. Plus, I'll share how investors can profit.

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."