Sprott Intoduces Physical Gold Fund
BY: Frank Tabbert - February 4th, 2010 - 3:55 PM -
+607-35 Here is another low cost way to buy or sell gold bullion and it gives investors the opportunity to redeem units of the fund for physical gold. The gold will be stored at the Royal Canadian Mint.It is a closed end bullion fund which plans to list its shares in Toronto and NewYork. The IPO proposes to sell 75 million units at US$10.00 each. If fully subscribed, plans are to sell another 11,250,000 units as well. In my opinion this looks like the best way for the little guy or girl to buy physical gold.
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Re: Sprott Intoduces Physical Gold Fund
Trading has started on the NYSE for this fund under the symbol PHYS and is trading around $10.00 per share
Re: Sprott Intoduces Physical Gold Fund
Eric Sprott announced prior to the Winter Olympic Games that he would donate $100,000.00 to The Canadian Olympic members for every gold medal won. He is now on the hook for 1.4 million dollars
Re: Sprott Intoduces Physical Gold Fund
Two features I like about this fund is that the gold is to be stored at the Royal Canadian Mint and shareholders can take delivery of the physical gold on a monthly basis. Now however, I understand(heresay at this point) that the minimum amount for delivery is 500 ounces which would count little guys like me out of the delivery option and in turn makes my interest in this fund diminish considerably. I guess when things look to good to be true----Yes you guessed it.
Re: Sprott Intoduces Physical Gold Fund
With the tremendous reputation of Eric Sprott and his belief in physical gold and his distrust of paper promises, I believe that his new physical gold fund will grow by leaps and bounds, especially since the little guy can actually get some physical gold in his hands on a monthly basis. A small start compared to GLD's size,it could eventually kick GLD in the a##. I think Sprott will quickly follow up with a physical silver fund. A snowball effect is going drive a nail in the heart of the phony silver paper market. Silver Certificates are another scam. I have purchased them in the past from Bank of Nova Scotia, but the spread on bid and ask is a killer, not to mention the currency conversion cost and fees to redeem for physical silver. Scotia is a big shorter of silver so it is betting against its clients. It is like going to a poker game with 100 bucks playing against a guy with a million bucks. You can have a Royal Flush but if your opponent raises the bid and you can't cover it is the same as a margin call.Check out this interesting read. http://ispeakofpeak.blogspot.com/2009/06/scotiabank-and-real-silver.html
Re: Sprott Intoduces Physical Gold Fund
I sort of like the idea of the bullion being in MY safety deposit box!! LOL Good lead though Frank!! When is the IPO scheduled to roll out? Must give it a look and you are right...there are too many fingers (and shadows ) in GLD for my liking!! iowatrukker
Re: Sprott Intoduces Physical Gold Fund
Further information on the fund: The shares will trade on the NYSE under the symbol PHYS and on the TMX under the symbol PHY. Unit holder may redeem their units for pysical gold on a monthly basis. Although tiny in comparison to GLD,I believe Sprott's fund is a true investment in the metal and the fact that that the individual can get their hands on physical gold at a reasonable cost will make the Sprott fund a serious competitor, GLD uses The Bank of New York as trustee and HSBC Holdings as custodian who in turn have a chain of various banks acting as sub custodians some of which are actively involved in leasing gold. Almost like asking Colonel Sanders to safeguard your chickens. GLD is reported to hold 1000 tons of gold through its custodians and sub custodians. I am not saying they don't have the physical gold, but there seems to be a lot of fingers in the pie. I think I would put more confidence in the Royal Canadian Mint safeguarding my gold.