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

Post by dragoncar » Thu Jan 21, 2016 1:14 pm

Did anyone have to pay some brokerage fees for the conversion?  Is your cost basis adjusted correctly?  I haven't checked mine yet
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Thu Jan 21, 2016 1:58 pm

No conversion fees. Partial share was sold to round down the number of shares (0.2 share in my case) and cash was deposited. Cost basis looks fine.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Thu Jan 21, 2016 2:00 pm

I'll bet that the ones that haven't converted yet are held in Vanguard. They are dreadfully slow.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Thu Jan 21, 2016 7:50 pm

Showed up in Vanguard Jan 20. Well, I guess it showed up today (21st), but in transaction history, the Corp Action is 1/20.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Mon Feb 08, 2016 9:30 am

Just got rid of all my PHYS!
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Mon Feb 08, 2016 9:50 am

Why? PHYS has been performing just as well as GLD, or IAU. Why get rid of it?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Wed Mar 02, 2016 3:23 pm

Picked up some CEF to tax loss harvest the PHYS.  At around 5% discount, I'm ready for a takeover now!  I know it isn't pure PP, but I'm only planning to hold for a month (although I'll see how I feel in a month).  Hopefully this is kosher with wash sale rules, as I suppose the gold component could be considered equivalent, but they are certainly very different securities given all the other differences in management, etc.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Libertarian666 » Wed Mar 02, 2016 6:54 pm

Reub wrote: Why? PHYS has been performing just as well as GLD, or IAU. Why get rid of it?
The reason I got rid of my GTU as soon as it was taken over by Sprott is that I don't want to do business with people who use such tactics as Sprott uses. Performance is secondary to that.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Thu Mar 03, 2016 3:27 pm

I would have sold my PHYS also but it's been up so much recently that I don't want to incur the taxes. :)
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Thu Mar 03, 2016 7:51 pm

Reub wrote: I would have sold my PHYS also but it's been up so much recently that I don't want to incur the taxes. :)
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Thu Mar 03, 2016 9:02 pm

Reub wrote: I would have sold my PHYS also but it's been up so much recently that I don't want to incur the taxes. :)
You do realize that you don't get a stepped-up basis for the PHYS shares to the date of conversion? The tax basis is whatever you paid for the GTU, which likely was being held at a loss.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Thu Mar 03, 2016 10:24 pm

Yes I do but I had a gain because I tax loss harvested out of IAU not that long ago and into GTU, which became PHYS.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Wed Jul 06, 2016 11:11 am

Earlier, I sold some phys and picked up CEF for tax loss harvesting. I've had it more than a month, but held on because it was performing fine and had a decent discount to NAV. Recently, the discount has closed by a few percent (still no premium). Should I just switch back? During brexit, it lagged gold a bit but seemed to do its job fine
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Libertarian666 » Fri Jul 08, 2016 10:54 am

dragoncar wrote:Earlier, I sold some phys and picked up CEF for tax loss harvesting. I've had it more than a month, but held on because it was performing fine and had a decent discount to NAV. Recently, the discount has closed by a few percent (still no premium). Should I just switch back? During brexit, it lagged gold a bit but seemed to do its job fine
I like CEF, partly because it has silver, and partly because its tax treatment is supposed to be the same as normal capital gains, not the "collectibles" rate.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MachineGhost » Fri Jul 08, 2016 5:37 pm

Libertarian666 wrote:I like CEF, partly because it has silver, and partly because its tax treatment is supposed to be the same as normal capital gains, not the "collectibles" rate.
Does that mean you can get the 0% capital gains rate if you're in the right bracket instead of your income tax rate?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Fri Jul 08, 2016 6:23 pm

yes, its the same deal as GTU was

although I only have it in tax-deferred right now (but that saves me from having to file that stupid form I hate)
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Libertarian666 » Sat Jul 09, 2016 9:13 pm

MachineGhost wrote:
Libertarian666 wrote:I like CEF, partly because it has silver, and partly because its tax treatment is supposed to be the same as normal capital gains, not the "collectibles" rate.
Does that mean you can get the 0% capital gains rate if you're in the right bracket instead of your income tax rate?
Yes, that is my understanding, as long as you file the correct 8621 forms every year.
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