The Stock Market, Investments, and Investing Thread
[quote pid='49789' dateline='1615207430']
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.

You are correct, PSLV is a closed end fund, my mistake.   And I whole-heartedly agree with you that the Sprott funds are the way to go in case that was not clear.

I made that mistake because of comments of Eric Sprott, where he said as people buy more shares they will take the cash and buy more bullion.  That is a how an open end fund works.  A closed end fund can do something similar, but its more clunky.  The number of shares are fixed.  As people buy more shares, the price goes up, and often the price is a premium to the net asset value of the fund.  To create more shares, they do a public offering of shares for cash, take the cash, and buy bullion.  But this happens in big chunks with a prospectus, etc.; its not a daily rebalancing like an open end fund where shares can be created and destroyed daily.  Still, he has managed to sell shares and take the cash and buy bullion for fund on multiple occassions.

(Thank you for the update on CEF.  I started stacking in 1979 and I haven't kept up with all of the changes like I should.)

Messages In This Thread
RE: The Stock Market, Investments, and Investing Thread - by Hypno - 03-09-2021, 11:02 AM

Forum Jump:

Users browsing this thread: 3 Guest(s)