Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Discussion of the Gold portion of the Permanent Portfolio

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dualstow
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Sun Aug 23, 2015 12:18 pm

I was out of town and did not respond to the time-critical offers. Oops.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Sun Aug 23, 2015 5:08 pm

dualstow wrote: I was out of town and did not respond to the time-critical offers. Oops.
Don't worry.
1. They aren't that great.
2. They will probably be extended.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Sun Aug 23, 2015 7:33 pm

Good to know. If I do nothing, will I get to keep my PHYS by default?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Mon Aug 24, 2015 8:13 am

dualstow wrote: Good to know. If I do nothing, will I get to keep my PHYS by default?
If the exchange offer succeeds, all GTU units will be "converted" to PHYS. Otherwise, nothing will happen to anyone who hasn't tendered their GTU units. It's not clear what happens to people who have tendered, but I can't see how it could be anything good.

BTW, I don't expect the offer to succeed.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by flyingpylon » Mon Aug 24, 2015 11:20 am

Is there some limit to how long they can try to obtain the necessary proxies?  I'm getting tired of the mail and phone calls.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Mon Aug 24, 2015 11:29 am

flyingpylon wrote: Is there some limit to how long they can try to obtain the necessary proxies?  I'm getting tired of the mail and phone calls.
I don't know of any time limit other than what is in the offer, which they have already extended several times.

I'm not getting phone calls, though. I think I may have gotten one, but I told them I wasn't interested.

But I may have blocked their number; I don't recall with certainty.

Do you hold your GTU in certificate form or through a broker? That may matter as far as getting phone calls.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Sat Sep 12, 2015 2:10 pm

I recently tax loss harvested back into GTU and received a Notice Of Variation by Sprott of its offer to purchase GTU in the mail today. It says that the offer remains open for acceptance until 5PM on September 18, 2015. They also sent me a printout that states, in part, that with PHYS you will get the following:

"A significant premium to the current value of your investment..."

"An investment that consistently reflects the actual price of gold."

"A safe and secure investment." (They state that they store their gold at the Royal Canadian Mint backed by Canada, not at an ordinary commercial vault.)

They sure are pushy!
Last edited by Reub on Sat Sep 12, 2015 2:11 pm, edited 1 time in total.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Sat Sep 12, 2015 4:19 pm

Reub wrote: I recently tax loss harvested back into GTU and received a Notice Of Variation by Sprott of its offer to purchase GTU in the mail today. It says that the offer remains open for acceptance until 5PM on September 18, 2015. They also sent me a printout that states, in part, that with PHYS you will get the following:

"A significant premium to the current value of your investment..."

"An investment that consistently reflects the actual price of gold."

"A safe and secure investment." (They state that they store their gold at the Royal Canadian Mint backed by Canada, not at an ordinary commercial vault.)

They sure are pushy!
And very vague, which is a bad combination.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by AdamA » Fri Sep 18, 2015 10:30 am

I notice GTU up much more than GLD and then saw this:

http://www.marketwatch.com/story/sprott ... 2015-09-16

Still not exactly sure what's going on. 

Why does Sprott want GTU so badly?

What will happen to NAV premium if they are unsuccessful?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by l82start » Fri Sep 18, 2015 10:52 am

based on some back of a napkin calculations, i think Sprott has already blown/spent any profits on the deal just covering the cost of paper and postage from sending information pamphlets and solicitations for support..
Last edited by l82start on Fri Sep 18, 2015 11:25 am, edited 1 time in total.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Fri Sep 18, 2015 11:37 am

Since I hold this in 3 different accounts, I'm getting 3 envelopes at a time, over and over again. Maybe I should answer them, if only for the trees' sake.

EDIT: I haven't read all of this thread, but for those who are standing pat, you're still going to get mail whether you reject or accept at this point, since acceptance hasn't hit 2 thirds(?) critical mass yet. This, according to the Vanguard rep I called.

Cheers.
Last edited by dualstow on Fri Sep 18, 2015 12:02 pm, edited 1 time in total.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by l82start » Fri Sep 18, 2015 12:01 pm

dualstow wrote: Since I hold this in 3 different accounts, I'm getting 3 envelopes at a time, over and over again. Maybe I should answer them, if only for the trees' sake.
same here, three accounts....   
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