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

Post by LazyInvestor » Mon Jan 18, 2016 8:13 am

It seems we won't have time to trade as the day of conversion is Jan 19. Today is some holiday so markets are closed.
Libertarian666
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Libertarian666 » Tue Jan 19, 2016 10:29 am

I was able to sell my converted shares but I had to call Fidelity to do it.
dragoncar
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Tue Jan 19, 2016 12:03 pm

I'm waiting until my annual contribution/rebalancing time next month.  Is there an urgent need to get out of phys?  Seems my taxes next April are screwed either way!
Libertarian666
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Libertarian666 » Tue Jan 19, 2016 12:14 pm

dragoncar wrote: I'm waiting until my annual contribution/rebalancing time next month.  Is there an urgent need to get out of phys?  Seems my taxes next April are screwed either way!
The need is that I hate Sprott's behavior in this situation and don't want to do business with them in any way, ever.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by al14 » Tue Jan 19, 2016 12:42 pm

Hello!
I was a GTU holder until PHYS took over a few days ago. Given that I always elect QEF option on my US tax form I do not find PHYS any different from GTU since the annual PFIC statements show no distributions since the inception in 2010. I'm a little confused by this, since the redemptions should cause adverse 28% collectible tax rate on US unit holders in Sprott PHYS, but there is no evidence as far as annual PFIC statements show. Is there another tax document that exposes US unit holders to 28% collectible tax rate, or is there something I don't understand?
Reub
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Tue Jan 19, 2016 3:09 pm

I guess that this is my first day owning PHYS and I noticed that it closed down 0.34% vs. down 0.10% for GLD and IAU. Why is this?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Tue Jan 19, 2016 3:23 pm

al14 wrote: Hello!
I was a GTU holder until PHYS took over a few days ago. Given that I always elect QEF option on my US tax form I do not find PHYS any different from GTU since the annual PFIC statements show no distributions since the inception in 2010. I'm a little confused by this, since the redemptions should cause adverse 28% collectible tax rate on US unit holders in Sprott PHYS, but there is no evidence as far as annual PFIC statements show. Is there another tax document that exposes US unit holders to 28% collectible tax rate, or is there something I don't understand?
Good question, and I'd like to know also.  I tried to find out what makes a gold holding collectible and it seems like closed-end funds are not whereas ETFs are?  I did search in the gold sub-forums but I couldn't find a recent summary of non-physical gold options.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Wed Jan 20, 2016 8:51 am

Good you managed to sell. I still only see GTU at IB. I guess it'll take few days for them to convert the shares.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Wed Jan 20, 2016 10:24 am

With the price of gold moving higher recently I hope that PHYS doesn't find a way to screw us on the conversion by not including us in these recent gains.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Dmilligan » Wed Jan 20, 2016 10:38 am

Anyone have any guess as to how long this conversion will take? What's the soonest I will be free to sell out of PHYS?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Wed Jan 20, 2016 12:28 pm

Dmilligan wrote: Anyone have any guess as to how long this conversion will take? What's the soonest I will be free to sell out of PHYS?
I was holding some GTU at TDAmeritrade, and it was already showing as PHYS yesterday morning.
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al14
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by al14 » Wed Jan 20, 2016 12:34 pm

..and why would anyone want to sell their PHYS given that there is no difference whatsoever between it and GTU for tax or other purposes (besides redemption option, that is useless for most and doesn't affect US taxes)
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