Sprott Physical Silver TrustPrimerica

Sprott Physical Silver Trust vs Primerica

This page compares Sprott Physical Silver Trust and Primerica, Inc., examining their business models, financial performance, and market context. It presents neutral, accessible information to help rea...

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Defensive Plays Amid Fed Turmoil

Defensive Plays Amid Fed Turmoil

The removal of a Federal Reserve governor has created political and financial uncertainty, shaking confidence in the central bank's stability. This environment could create opportunities for investments in defensive sectors and assets that are traditionally seen as safe havens during periods of market volatility.

Published: August 26, 2025

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Investment Analysis

Pros

  • Significant assets under management growth with AUM increasing 56% year-to-date to $49.1 billion as of September 30, 2025.
  • Strong net sales performance, with $3.5 billion in net sales during the first ten months of 2025, primarily in physical trusts like PSLV.
  • Low management expense ratio of 0.57%, enhancing cost efficiency relative to asset size and investor returns.

Considerations

  • Market price often trades at a discount to NAV, around -3.76% recently, reflecting possible market skepticism or liquidity premium.
  • High volatility and price swings in silver market contribute to notable fluctuations in fund value and investor returns.
  • Exposure concentrated in silver, making the trust susceptible to commodity price risks and macroeconomic shifts affecting metals.

Pros

  • Primerica benefits from leading market position in multi-level marketing of financial products in North America.
  • Strong revenue growth driven by expanding sales force and increasing penetration of term life insurance products.
  • Solid earnings consistency supported by a diverse product offering including insurance, investment, and lending services.

Considerations

  • Highly cyclical and interest-rate sensitive business, with earnings exposed to fluctuations in economic conditions.
  • Regulatory and reputational risks associated with multi-level marketing business model can impact growth and valuation.
  • Execution risks linked to recruiting and retaining licensed agents amidst competitive insurance and financial services market.

Why invest with Nemo?

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Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

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