Some of you may have heard about how one gold fund seems to be diverging from all the others, that is, the recently launched Sprott Physical Gold Trust (NYSE:PHYS) in Canada where physical gold is held outside the purview of HSBC or any other bullion bank.
Today’s action is a bit extreme, but, then again, these are extreme times and people do extreme things, such as paying a premium for a gold fund that they believe actually has the gold they say they have and is not subject to confiscation by the U.S. government as some fear. Of course, it has other advantages too, such as a lower tax rate for U.S. buyers.
![[Most Recent USD from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
Well, if FDR did it so can Obama.
I would love to think the physical angle is the right one, but something seems off to me. Cannot put my (fat) finger on it.
[...] As more people become interested in gold, demand for gold EFT’s has increased as well. Tim Iacono at The Mess That Greenspan Made talks about how All Gold funds are not the same. [...]
This sort of thing works both ways. When I owned that canadian gold fund (central fund of canada) a while back it “adjusted” me out of about $7,000 overnight. Obviously I didn’t understand how it worked.
This one will do the same whenever gold becomes out of favor temporarily.
And I note that today (5/26) PHYS is down over 8% overnight due to adding shares, same thing as I dealt with.
I’ve never looked into this fund, but I plan to do so in the days ahead – here’s a related story that goes a long way in explaining what’s happening:
http://seekingalpha.com/article/191523-sprott-physical-gold-trust-not-really-a-gold-etf-and-a-bad-deal-to-boot