From JS Mineset - Now this is a REAL Gold Fund!
A year ago February, Bank of Montreal announced plans to start a physical gold fund –
– and today the bank filed a prospectus with the U.S. Securities and Exchange Commission signifying intent to stock the fund with $500 million of gold, to denominate the shares in ounces, to vault the metal at the Royal Canadian Mint, and to give investors the option of withdrawing their investment in real metal:
The prospectus provides a few interesting and even amusing details:
– It cautions that the “official sector” is active in the gold market and can affect prices, an acknowledgment that will never make it into any reports by mainstream financial news organizations.
– The fund will not insure its assets, trusting the Royal Canadian Mint to protect them.
– The fund is structured separate from the Bank of Montreal so that its assets will not be vulnerable to claims by creditors against the bank.
– And — the amusing part — the fund seeks to eliminate “derivatives risk (i.e., the use of unallocated gold, gold certificates, exchange-traded products, derivatives, financial instruments, or any product that represents encumbered gold),” as well as “‘empty vault risk’ or gold bullion lending risk (i.e., the practice of the gold custodian lending, pledging, hypothecating, re-hypothecating, or otherwise encumbering any of the investors’ underlying gold bullion).”
Imagine — a bank warning against the shady practices in the gold market of other banks. While that’s something else that will never make the mainstream financial news organizations, at least the word is getting around anyway.
I've read on the Van Eck website they can re balance every quarter. I've reviewed their holdings every week since 1/1/16 and I didn't notice any change in holdings. For example they hold PZG and the amount of shares hasn't changed. Whether or not they get begin to buy GSS we won't know until 7/1 and beyond. GSS does meet the minimum market cap of $150M. I've been buying the 3 top holdings, BTG, AGI, and AG on every dip and doing quite well. I guess I'm a "front runner!"
I've been short DB a few months now and when I read about the debt downgrade I was eagerly anticipating the plunge in share price. Of course its up about 5% since the announcement, go figure! I'll be looking at some puts today if its up. I'm sure the big boys are churning it higher for the plunge coming soon.
Charts and TA mean nothing to a penny stock so stop all the BS. Moreover I suggest Charts and TA mean nothing to gold stocks at this time, the capitalization is much too low and there is no substantial institutional or hedge fund ownership, yet.
I agree 100%, a call option without maturity. I learned my lesson years ago to always keep some dry powder for days like today, unfortunately was out on appointments all day but I will look to steal another 10,000 shares tomorrow. Ironically todays volume was low, who the heck was selling??
I ask that question every day, who is selling?? Even if you bought at the very low, why sell today??
Makes no sense
Many interesting posts since the announcement of this deal and speculation whether BMO was capping the share price. Seems to me if I'm BMO and with it's due diligence buy at $.66 which was below the market price at the time I would want the share price to increase especially to take advantage of the additional available over allotment shares. The newly created shares will be transferred to BMO directly and not trade on any exchange. Over the next few years this purchase can be a 10 bagger for BMO the way I see it.
It is BS with the vast majority of the US debt financed by short term notes and bonds any increases in the 5,7 or 10yr treasury will increase debt payments significantly.
looking forward to the CC tomorrow morning 8:30am. Great news on the increased Prestea Underground Development estimates and that is still using the assumption of $1,150 price of gold next year!!
It's been 10am in the past however I see the annual shareholder meeting begins at 11:30am rather than 1pm like last year. I doubt there is anything meaningful with the times. This time last year the Royal Gold deal was announced.