-- Posted Wednesday, 23 January 2013 | | Disqus
Trust Highlights
The Sprott Physical Platinum and Palladium Trust is a closed-end trust that invests in unencumbered and fully-allocated Good Delivery platinum and palladium.
The Trust was created to invest and hold substantially all of its assets in physical platinum and palladium bullion. Its purpose is to provide a secure, convenient and exchange-traded investment alternative for investors who want to hold physical platinum and palladium bullion without the inconvenience that is typical of a direct investment in physical platinum and palladium. The Trust does not speculate with regard to short-term changes in platinum and palladium prices.
Convenient
Units of the Trusts trade on the NYSE Arca and the TSX and provide investors with access to the physical platinum and palladium bullion market with the liquidity of an exchange traded security.
NYSE Arca: SPPP
TSX: PPT.U
Secure
Without exception, the Trust's physical platinum bullion is fully allocated and stored at a secure LPPM-approved third party storage location in Canada and the palladium bullion is fully allocated and stored in a secure third party storage location in London and Zurich. The physical bullion is subject to a physical count periodically on a spot inspection basis and subject to audit procedures by the Trusts' external auditors on at least an annual basis. Unlike other bullion funds, the Trust does not have an unallocated account that is used to facilitate transfers of bullion between financial institutions that act as authorized participants.
Cost Effective
For many investors, the transaction costs related to owning the Trust are expected to be lower than the costs to purchase, store and insure physical bullion directly.
The Sprott Physical Platinum and Palladium Trust charges a 0.50% management fee per annum. There is also an administration fee charged yearly which is estimated to be roughly 0.35% per year.
Tax Effective*
For U.S. non-corporate investors who hold units for one year and timely file a QEF form, gains realized on the sale of the Trusts' units are currently taxed at a long-term capital gains rate with a maximum of 20%, versus a maximum of 28% applied against most precious metals ETFs and physical coins.
Redeemable for Physical Bullion
Unitholders with a minimum quantity of units will have the ability to redeem their units for physical platinum and palladium bullion on a monthly basis. Please see "Redemption of Units" in theprospectus for details.
Manager of the Trust
Sprott Asset Management LP
-- Posted Wednesday, 23 January 2013 | Digg This Article
| Source: GoldSeek.com
