Sprott Asset Management Announces Update to Sprott Physical Gold Trust’s ATM Program
Toronto, April 11, 2025 – Sprott Asset Management LP, a subsidiary of Sprott Inc., acting on behalf of the Sprott Physical Gold Trust (NYSE: PHYS) (TSX: PHYS / PHYS.U) (the “Trust”), has announced an update to the Trust’s at-the-market equity program (“ATM Program”). The Trust intends to issue an additional US$1 billion of units of the Trust in the United States and Canada under the Prospectus Supplement dated April 11, 2025, to the Base Shelf Prospectus dated September 6, 2024.
About the Sprott Physical Gold Trust
The Sprott Physical Gold Trust is a closed-ended mutual fund trust created to invest and hold substantially all of its assets in physical gold bullion. The Trust’s units represent a fractional interest in the Trust’s net assets, which consist primarily of physically allocated gold bullion held in secure storage facilities. The Trust aims to provide investors with the opportunity to invest in gold through a convenient, cost-effective, and liquid investment vehicle.
Update to the ATM Program
The Trust has updated its ATM Program to provide the Trust with increased flexibility to issue Units to meet market demand. The Prospectus Supplement and the Base Shelf Prospectus are available on EDGAR at the website of the United States Securities and Exchange Commission (the “SEC”) and the SEDAR+ website maintained by the Canadian Securities Administrators. Distributions will no longer be made under previous ATM Program prospectus supplements, including the amended and restated prospectus supplement dated December 6, 2024.
Impact on Individual Investors
The update to the Sprott Physical Gold Trust’s ATM Program may present an opportunity for individual investors to increase their exposure to gold through the Trust. The Trust’s units provide a convenient and cost-effective way to invest in gold, as they are listed on major stock exchanges and can be bought and sold like other stocks. The Trust’s physical gold holdings are held in secure storage facilities, providing investors with peace of mind knowing that their investment is backed by real gold.
Impact on the World
The update to the Sprott Physical Gold Trust’s ATM Program may have a broader impact on the gold market and the global economy. As the Trust is one of the largest investment vehicles for physical gold, an increase in the number of units issued could lead to increased demand for physical gold. This, in turn, could drive up the price of gold, making it a more attractive investment option for both institutional and individual investors. Additionally, the Trust’s increased flexibility to issue units may help to mitigate supply shortages in the gold market, ensuring a steady flow of investment capital into the sector.
Conclusion
The update to the Sprott Physical Gold Trust’s ATM Program represents an opportunity for individual investors to increase their exposure to gold through a convenient and cost-effective investment vehicle. At the same time, the Trust’s increased flexibility to issue units could have a broader impact on the gold market and the global economy, potentially driving up the price of gold and ensuring a steady flow of investment capital into the sector.
- Sprott Asset Management announces update to Sprott Physical Gold Trust’s ATM Program
- Trust intends to issue additional US$1 billion of units in the US and Canada
- Investors can buy and sell Trust units like stocks on major exchanges
- Trust’s physical gold holdings provide peace of mind and security
- Update may lead to increased demand for physical gold, potentially driving up price
- Increased flexibility to issue units may help mitigate supply shortages in gold market
