Comments on: PHYS: Now You Can Store Your Gold in Canada

By: Ron Rowland

Ron Rowland — Tue, 02 Mar 2010 20:09:38 +0000

Correct. No siginificant difference.

By: Ian Mathers

Ian Mathers — Tue, 02 Mar 2010 19:33:12 +0000

So, there is no significant difference from an ETF like CEF or a pool account like Kitco offers. The launch of this fund is a non-event. If you don’t have it in your hand, you don’t really own it.

By: Ron Rowland

Ron Rowland — Tue, 02 Mar 2010 19:17:16 +0000

Correct, except in this case the investor is the fund/Trust. The fund’s assets are not pooled with others and the fund owns the allocation. The shareholders of the fund are pooled.

By: Ian Mathers

Ian Mathers — Tue, 02 Mar 2010 18:58:16 +0000

My understanding of ‘allocation’ has always been that the investor has a specific item earmarked and that the investor is further given a serial no. or some other identifiable indication that this actually exists and is unique. If you have a share in something with a multitude of other claims on it, then it is not allocated – it is a pool account.

By: Ron Rowland

Ron Rowland — Tue, 02 Mar 2010 14:23:46 +0000

The allocation will not be done at the individual share holder level. It will only be done at the fund level.

By: Ian Mathers

Ian Mathers — Tue, 02 Mar 2010 02:21:59 +0000

Allocated, my hairy butt!!

Unit holders will have the ability, on a monthly basis, to redeem their units for physical gold bullion in a minimum of one bar (350 to 430 troy ounces)

If I had enough cash to ‘allocate’ even one 400 oz bar of gold, I wouldn’t be beggin’ the gobment for my tax refund.

By: Ian Mathers

Ian Mathers — Tue, 02 Mar 2010 01:13:30 +0000

Dave;

It could be said that all ETF’s such as CEFa.to allocate the gold or silver in your name, but considering the claim that this one will both allocate it for you and store it at the Royal Canadian Mint, would make me very leary. It might become the No. 1 but that really means nothing if you have no more than a piece of paper.

By: uberVU - social comments

uberVU - social comments — Mon, 01 Mar 2010 16:00:54 +0000

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By: Dave Webster

Dave Webster — Mon, 01 Mar 2010 07:13:14 +0000

Finally a gold ETF that actually has physical gold and allocates it in your name. For a slightly higher expense fee than the other paper ETF’s its fantastic. Considering the other ETF’s may not have any physical gold at all, and if they do it would be a very small amount on a % basis, their expense ratios are exhorbitant for the gold they actually have.

Congratulations to Sprott. I expect this ETF to be the #1 ETF in no time at all. People will eventually flow their money to a product that’s real.

By: Ian Mathers

Ian Mathers — Mon, 01 Mar 2010 07:07:57 +0000

I didn’t believe it when KITCO was advertising RCM storage because the mint is a crown corporation and never offered storage to ANYONE. Now KITCO offers it through Questrade whose site claims it is the first to give you the option of holding physical gold (or silver) in your RRSP, RESP (Canadian tax-free retirement and education funds), although Central Fund of Canada – an ETF -has been doing so since the mid 1960’s. They audit frequently and have a proven record of integrity. Even though I have part of my RRSP in this fund, I still prefer to hold the physical metal myself. If you don’t have it in your hand, you don’t really own it and if the investment is known to – or registered with – the government, you have only paid for an interest in something the government and the banks will control. Reject their tax refund bait, buy PM with YOUR after-tax money, and keep it very close.