The Central Gold Trust (GTU) shelf offering closed today.
CENTRAL GOLDTRUST CLOSES U.S. $ 280,197,000 UNIT ISSUE
TORONTO, Ontario (June 23, 2010) – Central GoldTrust of Ancaster, Ontario is pleased to announce that it has completed the sale of 5,730,000 Units of Central GoldTrust at a price of U.S. $48.90 per Unit to a syndicate of underwriters (the “Underwriters”) led by CIBC, raising total gross proceeds of U.S. $280,197,000. The Units offered were primarily sold to investors in Canada and in the United States under the Multijurisdictional Disclosure System.
The issue price of U.S. $48.90 per Unit was non-dilutive and accretive for the existing Unitholders of Central GoldTrust. Substantially all of the net proceeds of the offering have been invested in gold bullion, in keeping with the asset allocation provisions outlined in Central GoldTrust’s Declaration of Trust and the related policies established by its Board of Trustees. The additional capital raised by the offering is expected to assist in reducing the annual expense ratio in favour of all Unitholders of Central GoldTrust.
The new total of issued and outstanding Units of Central GoldTrust is 16,648,000. The investment holdings of Central GoldTrust are now represented by approximately 604,676 fine ounces of gold bullion, 6,156 ounces in gold certificates and approximately U.S. $16,980,360 in cash and short term notes.
I thought it was interesting that in response to a UBS poll, central banks and their ilk chose gold as the best performing asset for the rest of 2010, albeit with a minority of the respondents.
“Gold will be the best-performing asset for the rest of the year as investors seek to protect wealth from sovereign debt risks and economic turbulence...'So long as fears about global debt sustainability and sovereign risk remain heightened, gold will continue to rise,' London-based UBS analyst Edel Tully said today in a separate report. 'Against this backdrop, it is little wonder that nearly a quarter of respondents expect gold will be the most important reserve currency in 25 years’ time.'”Nothing is certain in the land where wealth and great fortunes rise and fall by fiat, and control frauds are a major facet of a national economy.
Gold to Be Best-Performing Asset for the Rest of the Year, UBS Poll Finds
The FOMC will be announcing its decision at 2:15 EDT today. Benji and his Banksters are quietly strangling the US productive economy while taking very good care of the Fed's owners, the big banks, in a series of remarkable policy errors and some very innovative financial engineering. All the traders I know are watching that marathon match at Wimbledon, or the World Cup. No one seems to care what Ben has to say.
It was correct of Mr. Obama to sack General McChrystal for gross insubordination,, or quite simply, talking trash while drinking heavily to a Rolling Stone reporter.
Now if only Obama would give Timmy and Larry the boot for gross incompetence at the least, and replace them with the likes of Elizabeth Warren and Robert Reich, the US economy might gain some traction.
Let's see what happens.
