The Book of Levi: Picks-and-Shovels for the New Gold Bull Market

You heard Rick say in our interview that you need to buy the best companies early in a bull market before diversifying into leveraged juniors. 

We think the stock featured in this report is the absolute best way to get quality exposure to all aspects of the precious metals sector. 

It's a play that offers investors access to physical commodities through its tax advantage trust, which holds $6 billion worth of precious metals. 

At the same time, it's also the largest secured lender for mine construction in North America. If that weren't enough, it manages in excess of $2 billion worth of precious metals equities.

It covers all branches of the resource business, a true picks-and-shovels play. 

It's 100% backed by Rick and it pays a nice dividend to boot. 

The company is Sprott Inc. (TSX: SII)(OTC: SPOXF).

Here’s how Sprott bills itself:

Sprott is a global asset manager providing investors with access to highly-differentiated precious metals and real assets investment strategies.

We are specialists. Our in-depth knowledge, experience and relationships separate us from the generalists. Sprott’s specialized investment products include innovative physical bullion trusts, managed equities, mining ETFs, as well as private equity and debt strategies. We also partner with natural resource companies to help meet their capital needs through our merchant banking and resource lending activities. Sprott is based in Toronto and has offices in New York, Carlsbad and Vancouver. Our common shares are listed on the Toronto Stock Exchange under the symbol TSX: SII.

Sprott today serves over 200,000 global clients and has approximately C$14.8 billion (US$11.3 billion; unaudited) in assets under management as of 1/17/2020.

Founded nearly 40 years ago by Eric Sprott, the firm has been a backer of hard asset investments for decades and has now grown into a global powerhouse touching all facets of the industry — from asset management and brokerage services to mining finance, bullion funds, and digital gold. 

By selling dry goods — and, later, riveted jeans —  to the small general stores supplying the gold rush in San Francisco, Levi Strauss was able to make a fortune without prospecting or mining. 

Similarly, Sprott is in a position to make a killing from this bull market in gold without having to actually explore, develop, or produce. It is providing goods and services for mining companies and investors. 

Here’s how Sprott breaks down its business:

  • Asset Management (Exchange-listed, Actively-managed)

  • Resource Financing (Sprott Resource Lending)

  • Wealth Management (Sprott Capital Partners, Sprott USA)

Sprott’s exchange-listed funds and trusts included:

  • Sprott Physical Gold And Silver Trust

  • Sprott Physical Gold Trust

  • Sprott Physical Silver Trust

  • Sprott Physical Platinum And Palladium Trust

  • Sprott Gold Miners ETF

  • Sprott Junior Gold Miners ETF

  • Sprott Focus Trust

  • Sprott Gold Equity Fund

  • Sprott Hathaway Special Situations Strategy

 

Those last two funds, by the way, are managed by John Hathaway, who came to Sprott in 2020 after 23 years managing the Tocqueville Gold Fund. Prior to that he was with Hudson Capital Advisors , Oak Hall Advisors, and David J. Green and Company. 

Rick Rule is the Senior Managing Director of Sprott, Inc. and also the President & CEO of Sprott U.S. Holdings. 

Sprott Inc. (TSX: SII)(OTC: SPOXF) pays a dividend and is currently yielding over 3%, and it offers a dividend reinvestment plan. 

It has a market cap of ~C$800 million. Shares have a 52-week high of C$3.99 and a low of C$2.36. 

With a hand in nearly every corner of the mining business, Sprott Inc. offers a great picks and shovels play on a new resource bull market.  

To learn more about what Sprott does, how to invest in their products, or how to become a client… check out the Spott website here.