Which gold ETF to buy?

[fargo]

Originally Posted by DixieFlyer

MF Global customers who had their accounts "vaporized" might disagree that it can't happen here

Additionally - I believe some MF Global customers owned gold and stored it in a warehouse via MF Global. They had receipt of said gold. After the collapse they had less of physical gold. http://jessescrossroadscafe.blogspot...-customer.html
People, you must sew extra pockets into your pants near your crotch to store your PMs. At least when the kleptocrats steal it you get some tangential benefit.

[solarcurve]

Sprott just did a follow-on offering to PSLV yesterday. Basically he took some of the premium to NAV and turned it into cash to buy more silver. Last time he did this was early January and you can see the rally that occurred afterwords. He's making a 200 million dollar bet that the floor at 26 will hold for silver - interesting to say the least. Probably a good time to pick up some PSLV if you're into Sprott products.

[lulzEMH]

Originally Posted by solarcurve

Sprott just did a follow-on offering to PSLV yesterday. Basically he took some of the premium to NAV and turned it into cash to buy more silver. Last time he did this was early January and you can see the rally that occurred afterwords. He's making a 200 million dollar bet that the floor at 26 will hold for silver - interesting to say the least. Probably a good time to pick up some PSLV if you're into Sprott products.

How is he placing a bet? He doesn't actually float the money to do the offering for any period of time does he?

[solarcurve]

No - transaction is most likely already completed and the 200 mln has been used to buy silver at yesterday's or today's prices. He's placing a bet because if silver goes to 20 from here, he's gonna look pretty stupid. Suffice it to say I wouldn't want to bet against this guy given his record.

[DixieFlyer]

Originally Posted by solarcurve

No - transaction is most likely already completed and the 200 mln has been used to buy silver at yesterday's or today's prices. He's placing a bet because if silver goes to 20 from here, he's gonna look pretty stupid. Suffice it to say I wouldn't want to bet against this guy given his record.

you may want to read this article that discusses the problems that a closed end fund like PSLV has in executing purchases:

http://kiddynamitesworld.com/eric-sp...s-going-lower/

[solarcurve]

already read it. if you believe Sprott did the offering and will now hold cash while silver goes to 20, more power to you. I believe he did the offering and has already started buying the silver because he thinks the floor at 26 will hold. KD is making an educated guess and even he admits that the trust only has some 50 mln cash - which means 150 out of the 200 mln offering has already been used to buy silver. Speaks for itself I think.