Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global Fia

[jtabeb]

Title says all that needs to be said ( I think)

http://www.zerohedge.com/article/inv...bal-fiat-deval

PHYS NAV.jpg

[goadam1]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

I've been wondering about this. I bought a little a month ago and it has been going up way more than GTU or GLD. How do you figure out the nav on these things. I can only own so much physical.

[thriftyandboringinohio]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

That seems pricey for the assurance. One can buy physical at spot-plus-5-points in small amounts. A small investor can store quite a bit in a bank safe deposit box or a home safe. A large investor can arrange secure storage for much less than 30%. Looks like some of the premium may be speculative, it's done awfully well.

[charliebrown]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

http://www.sprottphysicalgoldtrust.c...e/default.aspx

Opening today premium was 20.xx%.
Is sprott any safer than GTU? GTU as 9.7% premium.
If I held sprott, I think I would trade into GTU.

I know sprott has some option to get physical for your shares, but does that actually help?
Suppose in a panic every goes physical and redeems. What would that do to the remaining investors? etc. Seems like it might add volatility. Just like the hedgies who offer a window
to cash out.

Additionally, If you have a BV, or kitco acct, should you sell sprot, and buy here?
In a kitco pool, they claim they set asside bullion to cover the pool, so it this less safe?

[jtabeb]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

You can get your gold from Sprott (according to the prospectus), which is something that neither GTU nor GLD allow you to do. (I think GLD does but you have to have like a million shares, literally a million shares, in order to redeem shares for gold)

[globaleconomicollaps]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

the premium on GTU went to zero in may 12, 2009 when they issued new shares:
http://www.reuters.com/finance/stock...20090512130300
this happens pretty regulary. I thnk that GTU owners have on the whole figured it out after getting blind sided by it over and over again. I'm thinking that PHYS owners will get the hint after sprott does a new share issue.


Also Sprott cannot possibly fulfill on physical withdrawals if they are 30% over subscribed on their bullion. What if everyone took out their gold at once?
-G

[globaleconomicollaps]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

One more point
on a typical day the number of shares traded:
GTU -- 52,000
PHYS -- 872,000
GLD -- 15,600,000
which one would you like to be in in a panic?

-DW

[ThePythonicCow]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

One more point
on a typical day the number of shares traded:
GTU -- 52,000
PHYS -- 872,000
GLD -- 15,600,000
which one would you like to be in in a panic?

-DW

When gold fiat currency panics, some of these entities will converge to the value of paper dollars in the limit, and some of these will converge to the value of Good For Delivery Gold Bullion Bars.

I want to be in whatever will be worth gold, not paper, when TSHTF.

I don't see what that has to do with trading volumes, except in an indirect way.

[lalla]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

is cef to be eschewed?

[marvenger]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

bullion vault doesn't trade at much of a premium; does that mean people are concerned about the physical gold backing?

[Rainier]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

Does PHYS have a tax advantage over GLD?

The PHYS prospectus seems to indicate that for certain US investors, gains are taxed a capital gains rates not the higher collectibles rate.

(Long GLD)

[ThePythonicCow]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

is cef to be eschewed?

I hope CEF is ok. For now at least, I trust CEF, GTU, BullionVault, Goldmoney, physical gold and silver in hand, and a metal mining stock mutual fund USAGX. I don't trust GLD or SLV anymore. The list of what I trust continues to shrink. So far, I've stayed one step ahead of the grim reaper.

[jtabeb]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

Ask Metalman.

[GRG55]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

the premium on GTU went to zero in may 12, 2009 when they issued new shares:
http://www.reuters.com/finance/stock...20090512130300
this happens pretty regulary. I thnk that GTU owners have on the whole figured it out after getting blind sided by it over and over again. I'm thinking that PHYS owners will get the hint after sprott does a new share issue.


Also Sprott cannot possibly fulfill on physical withdrawals if they are 30% over subscribed on their bullion. What if everyone took out their gold at once?
-G

I am quite familiar with GTU and CAF, as they are relatively long standing [at least in the case of Central Fund] Canadian products/funds...but not familiar with Sprott's new product. How exactly do they end up 30% "oversubscribed"? If one unit is equivalent to a fixed amount of gold then it doesn't matter what the premium or discount is...a redemption is always based on quantity. Wouldn't this be the way they would have set up the fund, if for no reason than to protect themselves from exactly this?

[globaleconomicollaps]

Re: Investors Willing To Pay 31% Premium To NAV For Sprott's Physical Gold ETF In Strike Over Global

It looks like you are right. I bring them one share I payed $12 for and they give me ~$10 in gold ( at current spot )

3. Ability to Redeem Units for Physical Gold Bullion

Unitholders have the ability, on a monthly basis and as described herein, to redeem their units for physical gold bullion for a redemption price equal to 100% of the NAV of the redeemed units, less redemption and delivery expenses, including the handling of the notice of redemption, the delivery of the physical bullion for units that are being redeemed and the applicable gold storage in-and-out fees, and subject to certain minimum redemption amounts.

http://www.sprottphysicalgoldtrust.c...t/default.aspx