Sprott USA Review

Sprott USA Review

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Sprott USA is the United States branch of the global company Sprott. The company's goal is to manage the alternative assets of their clients. Their main focus is on precious metals, but they also manage other alternative assets.

Sprott doesn't sell precious metals themselves. But they are a publicly traded company. If you want stock in a precious metals industry company, you have the opportunity to purchase shares. The question is just whether the stock is worth the purchase.

Here's what you should know about how Sprott USA operates and what services they offer.

  • Product Type: Precious Metals
  • Owner: Eric Sprott
  • Rating: 3/5

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About Sprott USA

Sprott USA Review

Sprott has been in business for over 40 years. Since the company's inception, it has grown to have offices in New York, London, and Toronto. Shares of the company are traded on the Toronto and New York stock exchanges.

Sprott manages investment portfolios for clients all over the world. They focus on tangible alternative assets like precious metals, creating strategies specifically tailored to each client.

The specialists at Sprott can help with asset management throughout the investment process. There are a huge number of different investment products to choose from. Some of these include:

  • Commodity trusts
  • Physical bullion trusts
  • Mining ETFs
  • Managed equities
  • Debt strategies
  • Other private equity options

In addition, Sprott is partnered with a variety of mining and other natural resource companies. They help these companies meet their goals by lending resources and brokering purchases.

The overarching Sprott company is made up of several separate companies. These include Sprott Capital Partners, Sprott Asset Management, Sprott Resource Lending, as well as Sprott US Holdings. Between these companies, the overarching entity:

  • Works as an investment and portfolio manager in Canada.
  • Works as an investment adviser in the US.
  • Works as an investment dealer in Canada.
  • Works with mining companies to create financing solutions.
  • Has a huge number of brokers and dealers in-network to choose from.

Today, Sprott has over 200,000 clients worldwide and manages over $20 billion in their assets. But when they first started in 1981, the company was much smaller. The growth has happened over time due to partnerships, acquisitions, and expansions.

Sprott is unlike other asset management companies in several ways. First, they have companies involved in every sector of the precious metals industry. Second, they have more global experience than most of their competitors. Third, their large network allows them to create financial solutions and unique portfolios that can't be maintained by other companies.

Sprott USA Review

Contrarian Values

Sprott describes itself as a "contrarian" company. Most traditional investments involve stocks, bonds, and ETFs. While Sprott offers some of these things, they purposefully focus on precious metals and tangible assets.

This is because precious metals tend to react inversely to the rest of the stock market. When the stock market crashes, the value of mining companies skyrockets. The demand for gold and silver significantly increases.

Sprott believes that this is an advantage. Their investments are a hedge against economic turbulence. Many people turn to them during times of economic uncertainty, such as the 2008 recession or the COVID-19 pandemic.

Not only does Sprott help investors to invest in precious metals companies, but they give investors access to funds and opportunities that can't be found elsewhere. They try to provide the largest amount of access to traditional investments in alternative asset industries.

Innovations

Sprott has remained on top of the asset management game by being consistently innovative. Instead of helping investors buy precious metals alone, they combine the ancient precious metals industry with the trappings of modern capitalism. This has created opportunities that previously didn't exist.

For example, Sprott is the creator of physical bullion trusts. They have also created factor-based ETFs centered around precious metals. By combining the traditional with the alternative, they give investors a truly unique option.

Alignment

The company states that one of its most important values is alignment. They believe that the employees, shareholders, and clients should all have their interests aligned in harmony. What's good for the shareholders should also be good for the clients and the employees.

In keeping with this, Sprott employees own a large number of shares in the company. When the company succeeds, the employees directly benefit. The company employees are also heavily involved in creating ongoing business strategies for acquisition and growth. Rather than having a distant board of executors making decisions, Sprott is a collaborative team effort.

This may be part of the reason that the company has continued to thrive when so many others have shut their doors. Since the employees are motivated to do good work, and the shareholders benefit from happy clients, the whole operation functions like a harmonious machine.

Is Sprott USA a Scam?

Sprott USA Review

Sprott USA is not a scam. This is a company that has been involved in the precious metals industry for over four decades. The USA branch is just one piece of an international organization. Managers at the company are in charge of billions of dollars in client assets.

Sprott has been accredited with the BBB for over a decade, having received their accreditation in July of 2011. They have an A+ rating but don't have any customer reviews or complaints. The lack of complaints is a good sign, but the lack of customer feedback overall is a little more difficult to interpret.

Still, Sprott has been well-reviewed as a company by several third party investment websites. The question is just whether they're a good option to buy stock in. They have grown enormously over the years, but it's questionable whether they'll continue to grow enormously in the future.

If you do invest in Sprott, you'll be buying shares of the company. As the employees continue to manage client assets, you'll earn a small portion of the overall profits each quarter. Some people prefer this type of investment because it pays dividends, while precious metals themselves do not. But it is a riskier investment than physical precious metals.

In addition, there are other precious metals companies that you might invest in. Many people choose to invest in mining operations rather than asset managers. Mining operations tend to have a large amount of reliable cashflow and profit from their ongoing projects. They also sometimes have more growth potential, depending on what future projects they're developing.

Pros & Cons of Sprott USA

Pros

  • Asset management company with publicly traded shares.
  • Over four decades in the precious metals investment industry.
  • More than $20 billion assets being managed.

Cons

  • Not a gold IRA company.
  • Might not perform as reliably as mining companies as an investment.
  • Not a precious metals dealer, so they're not ideal if you're looking to purchase physical gold and silver.

Final Thoughts

Sprott USA is an asset management firm that has been in business for 41 years. They have earned their place in the precious metals world. Today, they manage $20 billion for over 200,000 clients worldwide. There are multiple international offices, and the company trades on several public stock markets.

The question is just whether Sprott is worth investing in. While this is undoubtedly a successful company, there may not be the same potential for growth and profit that you'd get with a mining company. Similarly, you won't be able to purchase physical precious metals here.

But if you do want to invest in an asset management group that focuses on precious metals, Sprott does have one of the longest histories in the US. It appears to be managed well and to have room to grow in the future.

We hope that you enjoyed this review of Sprott USA.

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