The Stock Market, Investments, and Investing Thread
(03-08-2021, 11:31 AM)Hypno Wrote:
(03-07-2021, 02:08 PM)Contrarian Expatriate Wrote:
(03-07-2021, 12:39 PM)Hypno Wrote: Avoid SLV, PSLV or CEF have the actual metal.

The problems with holding actual metals are several:

- Lack of easy sale or convertibility to cash.
- Safety deposit box, security safe or commercial storage costs.
- Insurance costs.
- Risk of theft.
- Risk of physical loss or misplacement.
- Risk of damage in fires, etc.
- Risk of fraudulent or fake bars.
- Difficulty of portability especially with regard to silver due to the large size of the bars.
- Difficulty of holding high volumes.  If I held my silver in actual metal, it would fill up half of a small dining room.
- Higher prices at purchase and lower prices at sale due to the dealer's profit margin from the spot price.

All those things considered, fully allocated, closed end funds like those in the Sprott family are the best way to go for most.  You get the liquidity and immediate convertibility just like the ETFs, and the knowledge that your share of metals are maintained for you remotely.  Also, you are spared the huge costs associated with purchasing above the spot price, storing, and insuring personally held metals.   It is a no-brainer.

PSLV and CEF are funds that hold physical.

PSLV is part of the Sprott Family.  Its an open ended fund.

CEF was the innovator here, was set up in Canada prior to Ford legalizing gold ownership for Americans in 1975.  Its a closed end fund and owns a mix of gold and silver.
If you read the fact sheets on each of these Sprott bullion funds, you will see that ALL of them are set up as closed-end trusts with fully allocated bullion held for each investor.  That includes CEF which was acquired by Sprott some years ago and the PSLV which you claim is open-ended for some inexplicable reason.

So again, if you want to low cost invest in physical bullion 100% backed by the metals themselves, Sprott is the way to go.  This is not rocket science.
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RE: The Stock Market, Investments, and Investing Thread - by Contrarian Expatriate - 03-08-2021, 12:43 PM

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