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Sprott USA is the United States division of the global company Sprott. The company focuses on creating and maintaining investment portfolios for clients. Unlike traditional investment managers, though, Sprott focuses exclusively on precious metals and tangible assets.
Are these investment managers actually trustworthy? What should you know before you decide whether to use their services?
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About Sprott USA
The Sprott company is a giant conglomeration that spans the entire globe. The company focuses on real assets and precious metals. Since they have subsidiaries or partners in basically every aspect of the industry, they are able to give their clients access to unbeatable financing options.
Despite the company's on-paper identity being confusing, the website is very transparent about how the setup works. Sprott US Holdings is made up of three separate subsidiaries. Each one of them handles a different one of Sprott USA's three main services.
The companies work independently of one another with their own teams, but they communicate enough to help clients streamline their experiences.
When you take the projects, holdings, and services of each of these subsidiaries into account, you find that Sprott USA is involved in:
They have influence or are partnered with people at every possible level of the precious metals industry.
According to the Company
According to the company, their specialists bring a level of expertise to the table that no one else can match. In addition, their industry relationships keep them ahead of the competition. There are a number of different investment accounts and strategies available.
Rather than just selling precious metals like a traditional broker, Sprott USA sells investment products across the whole spectrum of economic assets. For example, you can purchase trusts secured with physical bullion, but you can also invest in mining ETFs and managed equities.
The company also works with more than just individual investors. They create partnerships with mining companies, using their resources and brokerage to help those companies meet their needs.
Today, the global Sprott corporation has more than 200,000 clients and manages almost $20 billion in assets. They have offices located in London, New York, and Toronto. In addition, you can buy shares in the company through the Toronto Stock Exchange.
Managed Account Services
The managed account services for the company are handled by Sprott Asset Management USA. This company is registered as an investment advisory firm with the SEC. When you choose to use their services, they create an investment portfolio for you by investing your assets into companies they believe have potential for growth.
Another option is to invest in a separately managed account. This lets you choose a model portfolio. By using an SMA, you will have direct access to your holdings and securities. People sometimes choose this option so that they have access to all the information about their finances.
Private Resource Partnerships
The private resource partnerships are a somewhat unique aspect of the company. According to the website, sometimes there is reason to create a fund that focuses on just one investment strategy. The company will chase this strategy until there are rewards for all of the investors.
When one of these opportunities arises, the company puts together a group of individual investors who are willing to pool their money. These people all become partners in the investment venture.
In order to participate in this offered service, you need to be an Accredited Investor with the company. Once you've done that, you can fill out an online form or send an email to be told about future opportunities.
Exchange Traded Products
There are a variety of exchange traded products available on the website. You can look at the net assets, operating expenses, and real time value of the stocks.
The main focus there is on creating mining equity funds. The company uses equity funds to funnel resources to mining companies that are working on promising projects. Those projects should yield enough returns to make the investors back their dues, though of course there's never any guarantee of income.
The company has provided all of the relevant disclaimers and information about their ETFs. They remind investors to do their due diligence before investing in an ETF.
In addition, it should be noted that there are restrictions on who can trade directly using the funds. Only authorized individuals can purchase primary shares in the funds. Then the public is able to buy shares on a secondary market. The company also notes that ETFs are subject to more potential fluctuations than other investments because of their unique setup.
Is Sprott USA a Scam?
Sprott USA is not a scam. Though it's difficult to find reliable third party reviews from investors, the company does have several reviews from employees on Glassdoor and Indeed. Most of the employees had positive things to say about the work environment and the management.
Sprott USA is the US-based subsidy of the Sprott global corporation. Their investment management services focus on precious metals and alternative assets. However, they don't appear to function like a traditional precious metals dealer. Their company is structured much more around asset management.
In addition, they don't have any IRA services. Many international companies don't, since there's no reason to specialized in extremely specific US tax laws. But the USA division of Sprott might have considered pursuing this. If you want to open a precious metals IRA, it's best to work with a different company.
Pros & Cons of Sprott USA
Sprott USA is an interesting company. It is the US division of a much larger global asset manager. The company focuses on tangible assets and precious metals in particular, but their main function is to help manage the investment portfolios of clients.
If you're looking for a company that will create and handle a precious metals portfolio for you, then Sprott fits the bill exactly. They have good reviews from past employees. They also seem to perform well in their areas of expertise.
But if you're looking for a traditional precious metals dealer, this might not be the place for you. The focus here is much more on investment than on acquisition. In addition, there aren't any precious metals IRA services. This is an unusual choice, since IRAs are one of the most common ways that people invest in precious metals in the US.
So if you're specifically looking for an IRA company, you should move along. But if you're interested in the investment management that Sprott USA offers, there's nothing holding you back.
Overall, we believe that there is a better option when it comes to your investment.
The above company is our top recommendation after doing extensive research. Feel free to keep doing your own research, or you can visit Sprott USA below!