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Sprott is one of the largest corporations on the planet, with multiple subsidiaries spanning every part of the precious metals industry. Sprott USA is their US division. The company focuses on alternative asset management. But what does that mean? And how do their services compare to the competition?
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About Sprott USA
The global Sprott corporation spans every continent, with a focus on precious metals and real estate. They have subsidiaries throughout every part of the industry and investment process. Even when they don't have a subsidiary in one area, they have partnered companies that cover them. Their network is one of the most extensive in this industry.
The paperwork for the corporation might be puzzling, but the website explains how the responsibilities are divided. Sprott USA is actually divided up into three subsidiaries. Each specializes in one of the company's main services.
Each company works independently. However, the teams are able to communicate with each other when the need arises. For clients with more complex investment needs, this is a bonus, as you don't have to work with several different corporations at once.
Multiple types of accounts and strategies are available. It all depends on your specific needs. Rather than focusing on tangible precious metals, they offer assets related to the precious metals industry. For example, you might be able to purchase stock in a mining company, or to invest in an ETF that funds future mining projects for a company.
Sprott Asset Management is the company subsidiary that handles the managed accounts in the US. They have been legally registered as an investment advisory company. This means that they are qualified to give you investment advice and to create unique investment portfolios for clients. Every employee has undergone training to understand the economy and the varying investment assets available.
When you work with this company, they will invest your assets in a variety of different options. Every portfolio will be slightly different depending on your goals, risk tolerance, and the types of investments you want to make.
You can also get a separately managed account through this company. You'll choose a basic portfolio that has certain asset allocations. The portfolio you choose is pre-made, which may be ideal for people with simple investment needs. You'll be able to access your securities and holdings directly. With this option, you have more information about your holdings on hand than with traditional investment management.
Sprott USA is one of the only companies that offers these "private resource partnerships." They're able to do this by leveraging their network connections with companies at all levels of the investment chain.
Sometimes funds are created that focus on a single investment strategy. Rather than investing in an individual and diversified portfolio, you pool your funds with those of other investors. The company continues to chase down the investment until all the investors reap the rewards.
When the opportunity to invest in private companies arises, Sprott USA pools money from a group of investors. Then they purchase shares in the company using these funds. All of the investors reap the rewards of the returns.
These opportunities aren't open to just anyone, though. You have to become an Accredited Investor first. After you've worked with Sprott for a while, you'll be given this designation. At this point, you can sign up for emails or fill out the online form to receive ongoing updates about future partnerships.
Sprott USA offers a variety of products that are traded on the global exchange market. They focus on companies in the precious metals industry, like mining companies and refineries. You can look at their available assets and sort them by their operating expenses, real time value, or net company assets.
The company's biggest goal here is to create equity funds for mining. By accumulating these equity funds, they are able to send resources to upcoming mining projects. The mining companies are then able to develop their mines and plans for the future. Then the investors reap a percentage of the mine's profits.
Sprott states that they only invest in projects that they believe will make the investors back their money. But there aren't guarantees, since every investment is a risk. Prior to investing in an exchange traded fund, you should learn about the risks. ETFs are far more risky to invest in than tangible assets like precious metals themselves.
There are also some restrictions regarding who can trade with the funds. If you want to have primary shares, then you have to be an authorized purchaser. Public investors can buy shares in the ETF through the secondary market, which means they don't have control over the funds.
Is Sprott USA a Scam?
Nothing indicates that Sprott USA is a scam. In fact, there are many factors that establish it as a legitimate company. It is hard to find reviews from past customers through websites like Trustlink and Trustpilot. But several employees have reviewed the company on Indeed and Glassdoor. They leave largely positive feedback about the management and environment.
Sprott USA is a smaller subsidiary of the global corporation Sprott. It focuses exclusively on customers in the US. Sprott offers investment management through alternative assets like real estate and precious metals. Rather than working as a normal bullion dealer, they focus on asset management.
Sprott USA does appear to have some very basic IRA services. However, there's very little information about whether they work with any approved custodians. They have an online application for a brokerage account available. With this application, you'll explain who you are, how you're funding the account, what you want to invest in, and what your risk tolerance is.
This is a little different from the paperwork you'd fill out with a custodian to create an IRA. It's possible that Sprott wants to focus on brokerage accounts without worrying about expanding into retirement accounts.
Pros & Cons of Sprott USA
Sprott USA is the US-based division of the global Sprott corporation. They are a legitimate business that focuses on helping people invest in alternative assets, mainly precious metals and real estate. After you invest, they offer ongoing asset management services for your portfolio.
Sprott is a company that can handcraft and develop an entire precious metals portfolio for you. They can manage it, store your metals, and give you information about your holdings over time. Their employees give them positive reviews, and they do seem to be knowledgeable about the alternative asset industries.
However, Sprott USA does not function the same way a traditional precious metals dealer does. They are more focused on investment growth and management than on their individual products. Additionally, while they manage assets of general investment portfolios, there's very little information about whether they offer IRA services.
If they do offer IRA services, it would likely be through a custodial partner. It's unclear whether they'd communicate with the custodian for you. For this reason, we recommend working with a company that specializes in IRAs if you want to invest in precious metals for your retirement.
But in general, there aren't any glaring red flags with Sprott USA. This company has all the resources and networking to put you in touch with the ideal alternative assets.
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