Interesting question, isn't it? Why is Sprott so concerned about the shareholders of a competing fund?
My concern with redemption is that anyone with enough dough can buy shares en masse, and then pull the physical bullion. To allow that to happen in an environment where a) the market price has the appearance of having been deliberately suppressed, and b) a physical shortage is suspected and purveyors of shorts would love to have a ready supply of cheap physical to lay their hands on, all seems bad management to me.
If the market price were "fair", and pulling physical from a fund was a non-event next to the price setting activity of mining producers and consumers, then I would have no issue with redemption. People should have access to what they own.
But the special allure of the CEF to me all along has been that it *can't* be raided at low prices by deep pockets who in all likelihood were actively working to aid the price lower in the first place.