MachineGhost wrote:
Sprott co-founded GTU and left, but GTU's corrupt management is treating the trust as a personal piggybank at shareholder's expense. The persistent discount to NAV is a result. It reflects illiquidity and the lack of action on part of management to use their ill-gotten gains to buy back shares to close the gap. THEY SIMPLE DON'T CARE.
Now, I understand ya'll arbitrating the NAV here so you want it to persist but so long as GTU management has their hands in the cookie jar, it will require extremely overbullish gold sentiment to swing back to fair value or a premium.
So if you don't know who the dope in the room is...
Well, let's see.
1. GTU has a lower expense ratio than PHYS.
2. One of the big supporters of the takeover had a bunch of PHYS shares but sold them and then bought GTU. If they like the PHYS redemption policy better than the GTU redemption policy, why not just keep the PHYS?
3. GTU's management has already proposed to limit the discount to 5% by allowing unitholders to tender units back to GTU at that discount, but Sprott is blocking that proposal.
4. Sprott has asked GTU unitholders to give them irrevocable proxies. Why do they need proxies that don't expire with their offer?
5. The Sprott redemption option isn't available for anyone who has less than a standard bar (400 oz.)
6. PHYS has no shareholder meetings or any way for minority shareholders to do anything about governance of PHYS.
7. PHYS has sold at a pretty big discount at times too.
To summarize, it doesn't look to me as though GTU's management is doing that bad a job, and I don't like Sprott's tactics.