| Fund Company | Sprott Asset Management L.P. |
| Fund Type | Miscellaneous – Commodity |
| Rating | N/A |
| Style | N/A |
| Risk Level | Very High |
| Load Status | Front End |
| RRSP/RRIF Suitability | Poor |
| TFSA Suitability | Poor |
| Manager | Sprott Management Team since May 2011 |
| MER | 1.71% |
| Code | SPR 316 – Front End Units |
| Minimum Investment | $1,000 |
Analysis: This fund does just what you expect it to do – it holds unencumbered, fully allocated silver bullion and silver certificates. All for an MER of 1.71%.
Many investors view silver in a similar way to gold in that it helps to provide some protection against currency devaluation and inflation. Unlike gold however, silver does have a number of uses in many industrial applications, which can help to underpin its value. Despite this, it has been quite volatile since its launch.
While there may only be a handful of options available for those looking for exposure to silver bullion, it is our opinion that there may be better options available. Given that the fund is a buy and hold vehicle, we feel that the 1.71% MER is too expensive. Instead, we would suggest that investors look at a couple of ETFs which will provide similar exposure at a much lower cost – iShares Silver Bullion Fund (TSX:SVR) or the Horizons COMEX Silver ETF (TSX:HUZ).