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

Post by Reub » Fri Oct 16, 2015 9:57 am

Why would reputable brokerage houses like Vanguard forward these messages to me? Don't they see that I am being spammed and misled by Sprott? I mean, how can they ask me to swap my shares if they don't have the right to?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MachineGhost » Fri Oct 16, 2015 10:42 am

Reub wrote: Why would reputable brokerage houses like Vanguard forward these messages to me? Don't they see that I am being spammed and misled by Sprott? I mean, how can they ask me to swap my shares if they don't have the right to?
Its a legal obligation for shareholders of record.  That's what brokers do.  If you owned individual stock, you'd get forwarded annual reports and proxy votes.

Since Sprott is trying so damn hard, I say hold on to the shares and let them sweeten the bid if they're that desperate to rescue the shareholders from cronyism.  Either they'll pay up or they will go away.  They already upped it by .10 per GTU unit.

I thought this was interesting...
http://www.marketwatch.com/story/sprott-files-notices-of-extension-in-connection-with-offers-for-central-goldtrust-and-silver-bullion-trust-2015-09-21 wrote:Sprott is committed to providing GTU and SBT unitholders with an opportunity to own a superior product. In order to reach these unitholders, as is common in transactions with a large retail base, Sprott has agreed to pay to each soliciting dealer a solicitation fee of US$0.1358 per GTU unit and US$0.0448 per SBT unit deposited through such soliciting dealer if such unit is either (i) taken-up and paid for under the applicable Sprott offer, or (ii) provided the Merger Transaction (as defined in the applicable Sprott offer) is completed, deemed to be withdrawn from the applicable Sprott offer under the Merger Election (as defined in the applicable Sprott offer), subject to a minimum fee of US$50.00 and a maximum fee of US$1,500.00 with respect to each beneficial unitholder of GTU or SBT and a minimum deposit of 300 GTU units or 1,000 SBT units. Where units deposited and registered in a single name are beneficially owned by more than one person, only one minimum and maximum amount will be applied.
Last edited by MachineGhost on Fri Oct 16, 2015 10:49 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 » Tue Oct 27, 2015 5:00 pm

Catching up on recycling weeks' worth of offers sent to 3 accounts. Good God. At this point, I just want to dump non-physical gold because, ironically, of all the physical toil and time spent with this paper work. Not reading it, just shredding and recycling it!
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dualstow wrote: I would sell, too, except that I'd be selling at a big loss. Can't wait to dump all my paper gold shares when they break even, no matter who's at the helm.
Selling at a loss is not always a bad thing if you can do a tax loss harvest. I also like to have real bullion which I call my core gold, but I also like to have some that I can easily manage online  to re balance. If you have GTU in a non taxable account then you can not do a tax loss harvest, but you also do not have to deal with the special tax forms for GTU or PHYS if held in a taxable account.  I have been a very happy GTU holder and will keep it as long as Sprott is not successful.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MachineGhost » Tue Oct 27, 2015 7:32 pm

dualstow wrote: Catching up on recycling weeks' worth of offers sent to 3 accounts. Good God. At this point, I just want to dump non-physical gold because, ironically, of all the physical toil and time spent with this paper work. Not reading it, just shredding and recycling it!
http://thebillfold.com/2012/04/how-much-money-you-need-to-realistically-recreate-the-scrooge-mcduck-gold-coin-swim/ wrote:Calculating his velocity (roughly 5 m/s2) suggests that this mountain (of which we cannot see the summit) has a slope of 35 degrees, putting a rough estimate of the entire hill at 73.5 billion. Is it possible that McDuck pushed together his wealth to make this monstrosity? In theory, yes, but the eye line of McDuck (fixed at 8 degrees above the horizon relative to the slope) suggests that there are at least two other such mounds, putting his total wealth at over 210 billion, and well beyond the meager 70 billion of richest man in the world Carlos Slim Helu. It’s also heartening to see cash in this picture, as a diverse portfolio is always a successful one.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Tue Oct 27, 2015 7:57 pm

haha, love it!
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Wed Oct 28, 2015 10:01 am

What's going on here? I've been receiving some notices, but I was ignoring them. Sprott managed to take over?!
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Wed Oct 28, 2015 11:19 am

Not that I know of. I've gotten offers again pretty recently.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Reub » Wed Oct 28, 2015 2:30 pm

It seems that Sprott can continue this process ad infinitum, in which case they will probably win eventually. One thing that I have noticed is that the NAV of GTU has been outperforming GLD over the past 3 months by 3.5%. Mere coincidence?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by steve » Tue Nov 03, 2015 11:38 am

I capitulated, I sold all my GTU that was held in taxable account to take advantage of a tax loss harvest, I bought IAU which has a low expense ratio. With Sprott extending the offer another time I thought this was a good time to get out. GTU expenses have been going up because of the Sprott hostile take over battle, I know that I do not want to own Sprott PHY because of high expenses and the way the company operates so for now I'm out. One of the key things about the PP is that you do not have to worry or follow it so close. I was happy with GTU and more then likely I would have just held without doing a tax loss harvest, but the thought of having to figure out my taxes and new tax forms  if Sprott takes over succeeds  was part of my reasoning to get out.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Tue Nov 03, 2015 11:57 am

I'm envious, Steve. For me it would not be a loss harvest, just a loss.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Fri Nov 13, 2015 10:00 am

Now Sprott is attacking the GTU trustees for running up legal bills defending against a hostile takeover... initiated, of course, by Sprott!

"Over the first nine months of 2015, the GTU and SBT Trustees have spent in excess of US$7 million of unitholders' money on litigation they initiated and campaigns against parties seeking change at the respective funds."

(from http://www.marketwatch.com/story/sprott ... 2015-11-11)

I think they have generated a new entry for the definition of "chutzpah".  :P
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by AdamA » Fri Nov 13, 2015 11:34 am

I'm going to start mailing all of the notices I get in the mail back to Sprott.

They will have to hire hundreds of new employees to manage this volume of mail.
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