Showing posts with label net asset values. Show all posts
Showing posts with label net asset values. Show all posts
25 August 2010
02 August 2010
01 July 2010
Net Asset Value of Certain Precious Metal Funds and Trusts
Sprott Physical Asset Fund is standing in like a champ against a determined bear raid.
I suspect the bear are trying to shake out the specs, given that we are into the delivery periods in the metals at the Comex, and the numbers appear to be intimidating in potential physical offtake. No better time to hit an asset than in the thin holiday trade. 
28 June 2010
Net Asset Value of Certain Precious Metal Funds and Trusts
Note: About 30 minutes after I put this up, gold and silver were hit with concentrated selling designed to break the short term price trend in a very obvious bear raid.
You should be used to this by now. It will not change until the financial system is reformed. So do not hold your breath, or get angy or excited, at least as a trader. That is counterproductive. Instead use these pullbacks while the trend is intact.
23 June 2010
NAV of Certain Precious Metal Trusts: GTU Closes Secondary Offer: Gold to Shine for Rest of 2010
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.
18 June 2010
Net Asset Value of Certain Precious Metals Trusts and Funds
The Central Gold Trust shelf offering will complete next Wednesday, 23 June.
On fading Jeff Christian and Jonny Nadler
Stay thirsty my friends.
16 June 2010
Net Asset Value of Certain Precious Metals Funds and Trusts
The Central Gold Trust was pressured today in response to its new unit offering from the existing shelf prospectus. The price declined 3.67% from yesterday's close with gold down $7.10. The total placement will be $285 million.
The premium is now low enough to make one an interested buyer, all things being equal, if there is an optimistic outlook for gold.
I have not quite calculated the 'greenshoe' on this offering as I am otherwise occupied today, but it might involve shortselling ahead of the offer as is customary and explained here.
Press Release
CENTRAL GOLD TRUST
For Immediate Release to Canada News Wire and U.S. Disclosure Circuit
TORONTO, Ontario (June 16, 2010) - Central GoldTrust of Ancaster, Ontario announced today that it has entered into an underwriting agreement with CIBC World Markets Inc., as lead underwriter, and Credit Suisse Securities (Canada), Inc. (the “Underwriters”), under which the Underwriters have agreed to buy and sell to the public in Canada (except Québec) and in the United States under the multijurisdictional disclosure system, 5,730,000 Units of Central GoldTrust.
The Underwriters have been granted the right to increase the size of the offering (the “Right”) by up to an additional 1,000,000 Units, exercisable in whole or in part, at any point prior to 4:00 p.m. (EST) on June 16, 2010. The offering will be made under an initial prospectus supplement to Central GoldTrust’s US$800,000,000 base shelf prospectus dated June 8, 2009.
The purchase price of U.S. $48.90 per Unit is expected to result in gross proceeds of approximately U.S.$ 280 million, prior to the exercise of the Right.
Substantially all the net proceeds of the offering have been committed to purchase gold bullion for settlement at closing, 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. Any additional capital raised by the offering is expected to assist in reducing the annual expense ratio in favour of all Unitholders of Central GoldTrust.
Closing is expected to occur on or about June 23, 2010.
10 June 2010
Net Asset Value of Certain Precious Metal Funds and Trusts
The distribution of NAV premiums on the Sprott PHYS 
09 June 2010
Net Asset Value of Certain Precious Metals Trusts and Funds
Interestingly, the Sprott premium has been driven down to near parity with that of GTU, which has no meaningful redemption policy for its gold.
I suspect this is the result of the ham-handed way in which Sprott managed its recent sale of additional units, and the munificence with which it delivered shares to the underwriters at prices well below the market. If I had done it that way, I would have been ashamed.
TORONTO, June 1 /CNW/ - Sprott Physical Gold Trust (the "Trust") (NYSE: PHYS / TSX: PHY.U), a trust created to invest and hold substantially all of its assets in physical gold bullion and managed by Sprott Asset Management LP, today announced that it has completed its follow-on offering of 24,840,000 Units at US$11.25 per Unit for gross proceeds of US$279,450,000 (the "Offering"). This includes the exercise in full by the underwriters of their over-allotment option.I do expect the PHYS premium to get back closer to long term trend after the excess shares are sold into the market and the profits of the underwriters are booked. The redemption feature is attractive, but the method in which Eric Sprott treated his shareholders may dampen future enthusiasm for his products.
This just serves to remind one that no trust or fund is a long term substitute for owning the real thing.
02 June 2010
Net Asset Value of Certain Precious Metal Funds and Trusts
Sprott completed its premium-busting unit offering and is now using the cash proceeds to procure bullion for the fund at an aggressive pace that suggests that it had made arrangements beforehand.
11 May 2010
The Net Asset Value of Certain Precious Metal Funds and Trusts
The Central Fund of Canada is selling 23,600,000 units from their shelf offering at 14.85.
The proceeds will be used to buy additional gold and silver bullion. This action tends to dampen the premium. The calculations will be updated when the transactions are completed and announced on their website. Closing is expected to occur on or about May 18, 2010.
Note: As a reminder, The Cafe is long gold and silver, and has been since 2001. All that varies is the form and the degree with occasional hedging.
30 April 2010
Muni Bonds: Time to Head for Higher Ground?
J. P. Morgan and Charles Schwab have just announced a program to make municipal bonds more available to small investors.
Let's see, record low interest rates and looming risk of default from undisclosed obligations, or perhaps a brisk uptake in inflation. Sounds like a plan (for the big dogs to unload).
Yikes!
05 April 2010
Net Asset Value of Certain Precious Metal Funds and Trusts
The Sprott Physical Gold Trust continues to add bullion, and is now almost on a par with the Central Gold Trust, which is several years old.
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