Spikes in Premium on PHYS

Discussion of the Gold portion of the Permanent Portfolio

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sophie
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Re: Spikes in Premium on PHYS

Post by sophie » Fri Jan 17, 2020 7:28 am

stuper1 wrote:
Tue Jan 14, 2020 6:20 pm
The premium went up last year for a couple weeks in January, so I've been keeping an eye on it, hoping for something similar this year. I still have no idea why that would be. Do people like to transact gold in January for some reason?
Just wanted to thank you guys for alerting me that the PHYS discount had evaporated. I sold it at a very slight premium (+0.01%) and replaced it with AAAU - which had a slight discount of -.10% No tax implications, it was in a Roth.

I suppose I could have waited for a better premium spread, but in the meantime the higher ER of PHYS would probably nibble that away. The discount now stands at -0.08%, so there's still time to act if anyone wants to do that.
Pet Hog
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Re: Spikes in Premium on PHYS

Post by Pet Hog » Sat Feb 29, 2020 2:53 pm

Along with yesterday's big decrease in the price of gold, PHYS traded most of the day with a big discount. I added to my holdings (from IAU) when the discount was 2.38%. I'll be looking to exit next week if the discount shrinks or evaporates. According to the chart at the bottom of this page, the discount hasn't historically stayed below 2% for more than a few days.
Pet Hog
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Re: Spikes in Premium on PHYS

Post by Pet Hog » Tue Mar 24, 2020 3:40 pm

Pet Hog wrote:
Sat Feb 29, 2020 2:53 pm
Along with yesterday's big decrease in the price of gold, PHYS traded most of the day with a big discount. I added to my holdings (from IAU) when the discount was 2.38%. I'll be looking to exit next week if the discount shrinks or evaporates. According to the chart at the bottom of this page, the discount hasn't historically stayed below 2% for more than a few days.
Sold those new shares of PHYS today when the premium was listed at 0.91%. The Sprott numbers, which are delayed and update only every few minutes, should be taken with a grain of salt. I kept an eye on the IAU/PHYS price ratio. It was 1.204 when I traded on Feb 29 and it was 1.178 when I traded today. Overall, I increased my number of IAU shares by 2.2% in a little over three weeks. Not bad. Somewhat risk-free. I still hold an equal dollar amount of PHYS shares, so if the premium goes up further (say, over 2%) I'll convert completely to IAU. I'll buy PHYS again if the discount gets above 2% (i.e., below -2%). And so on.
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