PHYS data as of September 30, 2026, from Sprott's published figures.
The Sprott Physical Gold Trust (PHYS) and an allocated vault account both give Canadians gold stored in Canada, but you own different things. PHYS units are exchange-traded securities backed by London Good Delivery bars held at the Royal Canadian Mint; they are cheap to hold and easy to buy in a brokerage or registered account, but you can only take delivery of metal with enough units for about one 400 oz bar. Allocated storage means specific bars and coins owned in your name, in sizes you choose, which you can withdraw or sell as metal.
Key facts
- PHYS has a management expense ratio of 0.39% and held about 3.75 million ounces of gold at the end of September 2026.
- PHYS traded below its net asset value on every trading day of 2025 and the first three quarters of 2026, at a discount of about 3% at the end of September.
- Redeeming PHYS for physical gold requires units equal to one London Good Delivery bar, about 400 oz, worth roughly US$1.66 million at end-September prices.
- Allocated vault storage lets you hold anything from a single coin to large bars, with withdrawal or sale handled by the storage provider.
Jump to: What PHYS is Side-by-side The NAV discount Getting metal out Tax and registered accounts Which fits you FAQ
What the Sprott Physical Gold Trust is
PHYS is a closed-end trust created in February 2010 and managed by Sprott Asset Management. It exists to hold physical gold bullion and almost nothing else. Its units trade on the NYSE Arca in US dollars and on the Toronto Stock Exchange in both US dollars (PHYS.U) and Canadian dollars (PHYS), so they can be bought through any brokerage account.
The gold itself is held by the Royal Canadian Mint as custodian, with RBC Investor Services as trustee and KPMG as auditor. All of the trust's bars are London Good Delivery bars, segregated within the vault and unencumbered, and Sprott publishes the full bar list by serial number along with a confirmation of holdings from the Mint. At the end of September 2026 the trust held 3,751,666 ounces, worth about US$15.6 billion.
So PHYS is real, allocated gold, but owned collectively by the trust. As a unitholder you own units of the trust, not specific bars.
PHYS vs allocated vault gold: side by side
| Sprott Physical Gold Trust (PHYS) | Allocated gold in a private vault | |
|---|---|---|
| What you own | Units of a trust that owns gold | Specific bars and coins, titled to you |
| Where the gold is | Royal Canadian Mint, as custodian | The provider's vault, such as a Brink's facility |
| Buying cost | Brokerage commission; units may trade above or below NAV | Dealer premium over spot, which varies by product and size |
| Annual cost | 0.39% MER, built into the unit price | Storage fee, usually based on value or weight |
| Selling | Sell units on the exchange during market hours | Sell back through the dealer or provider at its buy price |
| Taking physical delivery | Monthly, with units equal to about one 400 oz bar | Any item you own, under the provider's withdrawal terms |
| Product choice | None; exposure only | Your choice of coins and bars, from 1 oz up |
| Registered accounts | Units generally eligible through a brokerage | Limited; physical bullion in an RRSP or TFSA needs a specialized trustee arrangement |
| Price you get | Market price of the units, which can differ from the gold's value | Tied directly to the metal price, less the buyer's spread |
PHYS details from Sprott's PHYS page and prospectus. Vault terms vary by provider; compare fees, insurance and withdrawal rules before you open an account.
What each option costs: a worked example
Costs come in two kinds: one-time costs when you buy and sell, and ongoing costs while you hold. Using a $100,000 holding as an example:
- PHYS, ongoing: the 0.39% management expense ratio works out to about $390 a year, taken from the trust's assets rather than billed to you.
- PHYS, one-time: a brokerage commission each time you buy or sell, which is often small or zero at discount brokerages, plus the effect of any change in the discount or premium to NAV between your purchase and sale.
- Allocated gold, ongoing: the provider's storage fee. Multiply your holding by the quoted annual rate and check for a minimum fee and whether insurance is included.
- Allocated gold, one-time: the dealer's premium over spot when you buy and the spread when you sell. These are usually the largest costs of owning physical gold, and they are lower on larger bars than on small coins.
Over a short holding period, PHYS is usually cheaper, because physical gold's buying premium and selling spread weigh heavily. Over a long holding period, the comparison narrows to the annual fees, and the qualitative differences, such as direct ownership and delivery in usable sizes, tend to decide it.
The discount to NAV: what it means for you
Because PHYS is a closed-end trust, its units trade at whatever buyers and sellers agree on, which can differ from the value of the gold behind each unit, the net asset value (NAV). Since launch, PHYS has traded anywhere from about 24% above NAV to about 3.6% below it.
Recently it has sat at a discount. Sprott's own figures show PHYS traded below NAV on every trading day in 2025 and through the first three quarters of 2026. On September 30, 2026, units closed 2.87% below NAV on the NYSE Arca and 3.09% below NAV in Canadian dollars on the TSX.
A discount is not free money. If you buy at a 3% discount and later sell at a 3% discount, the discount has made no difference to your return. It works in your favour only if the discount narrows while you hold, and against you if it widens. Physical gold has no such gap: its value moves with the metal price, and your cost is the dealer's premium when you buy and spread when you sell.
Getting physical gold out of PHYS
PHYS units can be redeemed for gold, but the process is built for large holders. According to Sprott:
- You must hold enough units to equal one full-sized London Good Delivery bar, approximately 400 oz. At end-September 2026 prices that is about US$1.66 million of units.
- Redemptions are processed monthly. The redemption notice must reach the transfer agent by 4:00 p.m. Toronto time on the 15th of the month, with a signature guarantee.
- Units held through a broker must first be moved into your own name and issued as a certificate.
- Redemption is at 100% of NAV, less redemption and delivery expenses, and the gold arrives as a 400 oz bar.
A 400 oz bar is the standard of the wholesale market, not a format individuals can easily divide or resell. For most investors, PHYS is a way to hold gold exposure, not a route to holding metal. If having metal you can withdraw in usable sizes matters to you, allocated storage of coins and smaller bars meets that need directly. The Royal Canadian Mint's own bullion coins are a common choice; see this guide to Canadian Gold Maple Leaf coins.
Tax and registered accounts in Canada
Tax treatment depends on your circumstances, so confirm the details with a tax professional. In general terms:
- Sales tax: PHYS units are securities, so no GST/HST applies when you buy them. Physical gold of at least 99.5% purity is generally exempt from GST/HST as investment-grade bullion; coins or jewellery below that threshold may not be.
- Gains: for most individual investors, a gain on selling PHYS units or physical gold is treated as a capital gain. Frequent trading can change that. Redeeming units for metal may itself count as a disposition.
- Registered accounts: PHYS units trade on the TSX and can generally be held in an RRSP, TFSA or similar account at most brokerages; confirm with yours. Holding physical bullion inside a registered plan is possible only in limited cases through a specialized trustee.
- U.S. taxpayers: Sprott notes that its physical trusts are treated as passive foreign investment companies (PFICs), which carries extra U.S. filing requirements.
Which fits you?
| If you want... | PHYS tends to fit | Allocated vault gold tends to fit |
|---|---|---|
| Gold inside an RRSP or TFSA | Yes | Rarely practical |
| Fast, low-cost trading | Yes | No |
| Metal you can withdraw in coins or small bars | No | Yes |
| Ownership of specific, identifiable items | No | Yes |
| No exposure to a trading discount or premium | No | Yes |
| A holding outside brokerage and securities systems | No | Yes |
Many investors hold both: PHYS inside registered accounts for tax-sheltered exposure, and allocated metal outside them for direct ownership. For a broader look at the choices, see this guide to investing in gold in Canada, and for the silver equivalent, the comparison of physical silver and silver ETFs.
How CanAm Bullion's allocated storage works
CanAm Bullion stores client metal in Brink's vaults in Toronto, Vancouver and Calgary. Holdings are segregated and allocated, so the specific bars and coins a client buys are held in the client's name, in facilities outside the banking system. CanAm states that the full value of stored metal is insured through Lloyd's of London and that clients receive reports monthly and after each deposit.
Clients can have purchases delivered straight to the vault and can deposit metal they already own. For other storage options and how they compare, see where to store gold and silver in Canada.
Frequently asked questions
Is the Sprott Physical Gold Trust backed by real gold?
Yes. PHYS holds London Good Delivery gold bars at the Royal Canadian Mint, segregated and unencumbered, and Sprott publishes the bar list by serial number. Unitholders own units of the trust rather than specific bars.
Can I redeem PHYS units for physical gold?
Yes, monthly, if you hold enough units to equal one London Good Delivery bar of about 400 oz. Redemption is at net asset value less redemption and delivery expenses, and the notice must reach the transfer agent by the 15th of the month.
What is the PHYS management fee?
Sprott reports a management expense ratio of 0.39% for the period ended June 30, 2026. It is built into the unit price rather than billed separately.
Why does PHYS trade at a discount?
PHYS is a closed-end trust, so its units trade at a market price set by buyers and sellers, which can differ from the value of its gold. It traded below net asset value on every trading day in 2025 and the first three quarters of 2026.
Can I hold PHYS in a TFSA or RRSP?
PHYS units trade on the TSX and can generally be held in registered accounts at most Canadian brokerages. Confirm eligibility with your brokerage before buying.
Is PHYS better than owning physical gold?
It depends on your goal. PHYS is cheaper to trade and fits registered accounts, while allocated physical gold gives you specific bars and coins you can withdraw in usable sizes and is not exposed to a trading discount or premium.
Where is the gold in PHYS stored?
At the Royal Canadian Mint, which acts as the trust's custodian. The bars are London Good Delivery bars, segregated within the vault, and Sprott publishes a confirmation of holdings from the Mint.
CEO and Founder of CanAm Bullion has been dedicated to delivering exceptional value to Canadians since 2017. Driven by a mission to empower Canadians with expert investment advice and education, he has positioned CanAm Bullion as a trusted resource for those seeking to enhance their portfolios with precious metals. Under Michael’s leadership, the company has become synonymous with reliability, knowledge, and dedication, helping Canadians achieve greater financial stability and long-term success.
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