04 November 2015

NAV Premiums of Certain Precious Metal Trusts and Funds - Killing Off Cash, Negative Rates

Approximately 11,293 troy ounces (only about .35 tonnes) of gold was redeemed from the Sprott Physical Gold Trust in return for 1,365,920 units since the last time I updated this on October 25th.  That prior chart is included below the current data.

You may make what you will of this, but the fact remains that there is little redemption of units for silver.  And there is a general decline in gold held by Western ETFs and Funds, and heading to Asia. It could also be some sort of arbitrage, but I am struggling with that one, again because it only seems to be happening with gold.

Or perhaps the Chia Pet or Pet Rocks people are diversifying their product offerings.

Business Insider Australia has an interesting article, Killing off Cash, and Imposing Negative Interest Rates.   

Janet Yellen did not rule this out in her congressional testimony today.  No wonder the wealthy are stashing their cash in offshore havens.

The cash balance in the Sprott Physical Silver Trust has gone more negative, as short term payments are most likely delayed, and/or short term operating loans taken.   It appears that another sale of silver bullion to raise cash for the fund may be in the works, pending the outcome of their acquisition proposals perhaps.

There was a marked decline in the cash assets of the Central Fund of Canada.  They paid a 1 cent per Class A Share annual dividend on October 28, which would account for about $2,544,327 of that.