Spikes in Premium on PHYS

Discussion of the Gold portion of the Permanent Portfolio

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Pet Hog
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Re: Spikes in Premium on PHYS

Post by Pet Hog » Sat Feb 29, 2020 2:53 pm

Along with yesterday's big decrease in the price of gold, PHYS traded most of the day with a big discount. I added to my holdings (from IAU) when the discount was 2.38%. I'll be looking to exit next week if the discount shrinks or evaporates. According to the chart at the bottom of this page, the discount hasn't historically stayed below 2% for more than a few days.
Pet Hog
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Re: Spikes in Premium on PHYS

Post by Pet Hog » Tue Mar 24, 2020 3:40 pm

Pet Hog wrote:
Sat Feb 29, 2020 2:53 pm
Along with yesterday's big decrease in the price of gold, PHYS traded most of the day with a big discount. I added to my holdings (from IAU) when the discount was 2.38%. I'll be looking to exit next week if the discount shrinks or evaporates. According to the chart at the bottom of this page, the discount hasn't historically stayed below 2% for more than a few days.
Sold those new shares of PHYS today when the premium was listed at 0.91%. The Sprott numbers, which are delayed and update only every few minutes, should be taken with a grain of salt. I kept an eye on the IAU/PHYS price ratio. It was 1.204 when I traded on Feb 29 and it was 1.178 when I traded today. Overall, I increased my number of IAU shares by 2.2% in a little over three weeks. Not bad. Somewhat risk-free. I still hold an equal dollar amount of PHYS shares, so if the premium goes up further (say, over 2%) I'll convert completely to IAU. I'll buy PHYS again if the discount gets above 2% (i.e., below -2%). And so on.
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jalanlong
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Re: Spikes in Premium on PHYS

Post by jalanlong » Sun Feb 21, 2021 6:41 pm

Pet Hog wrote:
Tue Mar 24, 2020 3:40 pm
Pet Hog wrote:
Sat Feb 29, 2020 2:53 pm
Along with yesterday's big decrease in the price of gold, PHYS traded most of the day with a big discount. I added to my holdings (from IAU) when the discount was 2.38%. I'll be looking to exit next week if the discount shrinks or evaporates. According to the chart at the bottom of this page, the discount hasn't historically stayed below 2% for more than a few days.
Sold those new shares of PHYS today when the premium was listed at 0.91%. The Sprott numbers, which are delayed and update only every few minutes, should be taken with a grain of salt. I kept an eye on the IAU/PHYS price ratio. It was 1.204 when I traded on Feb 29 and it was 1.178 when I traded today. Overall, I increased my number of IAU shares by 2.2% in a little over three weeks. Not bad. Somewhat risk-free. I still hold an equal dollar amount of PHYS shares, so if the premium goes up further (say, over 2%) I'll convert completely to IAU. I'll buy PHYS again if the discount gets above 2% (i.e., below -2%). And so on.
How do you locate the premium/discount on the Sprott funds in real time (or a few mins behind)?
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