Sprott vs. Spicer… yet another Gold repatriation
This is fascinating.. I read it as another vote of no confidence in the banking system as a trustworthy caretaker of Gold.. speaking of the GTU;
The Never ending Large Discounts To Net Asset Value
Their product traded at a large discount to net asset value through good markets and bad. When people think of precious metals management — gold, silver, platinum and palladium — they think of Sprott. They don’t think of Spicer. That’s probably another reason why our units have always exhibited a better market performance than theirs.
The other problem is that their units are held at a Canadian chartered bank, which might be threatened in any sort of circumstance that would cause gold to become suddenly more valuable.
There is only so much Gold left to grab… it's going to be interesting to see if this Gold can be, "freed" or not.
For what its worth, I hold CEF, and I'm hoping that it will be bought out by Sprott and my 9% discount to NAV will suddenly morph into par, giving me a free 9% ROI.
There's no material reason why CEF should trade at a discount. I'm entirely in agreement with Rick Rule that the Sprott products are better. Market has consistently supported this contention. Hopefully Sprott can get a majority of CEF shareholders to vote for the acquisition. It would be entirely additive to shareholder value. In my opinion.
Dave….I can't find it now, but have read that there is a difference in the Spicer funds GTU/SBT v CEF, something along the lines of more public v more private, that the Spicers have more control of CEF. Perhaps that's why CEF is not on the buyout table now.
Sprott funds are open to redemption of physical
CEF holds both gold and silver whereas GTU is gold only and SBT is silver only
while there are NO provisions for redemption on Spicer funds, there is a minimum redemption on Sprott funds.
what entities can ALWAYS have large amounts of paper or electronic representations of money at hand to redeem that physical??
I believe that happened previously with Sprott Silver fund back in 2011. what were NAV discounts/premiums on Spicer funds back then?