Q: For someone who wants physical exposure to gold, is it better to buy Sprott Physical Gold Trust or Sprott Physical Gold Trust Unit? I understand that the former trades on the TSX and the latter on the NYSE. What is your preference? Thank you
5i Research Answer:
These are economically equivalent and the NYSE version is likely just for increased liquidity of the trust, making it more readily available to US investors. The decision depends on if an investor wants CAD or USD exposure to gold. The two should be economically equivalent and arbitrage should take care of any material currency divergence as well. Generally, we would prefer the US version for better liquidity.