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 » Mon Dec 28, 2015 9:21 am

I've harvested my tax losses earlier in the year. Are there other valid reasons to sell GTU?
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BearBones
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by BearBones » Mon Dec 28, 2015 10:14 am

Reub wrote: I've harvested my tax losses earlier in the year. Are there other valid reasons to sell GTU?
Seems that it will either be converted to PHYS or an ETF, the latter having less favorable tax consequences. Think I will sell today and buy PHYS, realizing loss. Can always buy back once the drama ends (if beyond 30 day wash sale rule). Anyone disagree?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by steve » Mon Dec 28, 2015 4:40 pm

I sold my GTU to for a tax loss harvest, I was happy with GTU before Sprott got into the picture.  If I want online gold that I can convert to physical I will buy OUNZ
http://www.merkgold.com/overview.html      or if I want to hold a gold ETF it will be either GLD or IAU.  IAU has lower expense but for tax loss harvesting I can see selling one and buying the other. Gold ETF are treated as collectibles so although they don't have the long term tax advantages that GTU had, they do not have wash sale rules as far as I know. So you could sell one gold etf and buy another. Although you should be able to buy the exact same one, brokerage accounts would treat it as a wash sale if it has the same CUSIP number
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dualstow
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dualstow » Mon Dec 28, 2015 5:23 pm

dragoncar wrote:
Reub wrote: How can you tell when it's at breakeven?
I think he means relative to his cost basis, although I'm not sure why to wait that long.  I don't love locking in the loss based on premiums I paid earlier, but don't mind tax loss harvesting now...
Yes, d-car, relative to my cost basis.
I am only in the 15% bracket.
I pay zero taxes on stock dividends and very little tax in general. No chance to tax loss harvest in my household.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by Phalanx » Tue Dec 29, 2015 1:36 pm

Pointedstick wrote: I sold it all and replaced it with Schwab's commission-free SGOL. Too much drama for my taste.
Yep, just did the exact same.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by stpeter » Wed Dec 30, 2015 2:13 pm

Phalanx wrote:
Pointedstick wrote: I sold it all and replaced it with Schwab's commission-free SGOL. Too much drama for my taste.
Yep, just did the exact same.
Same here. I'm sad to see GTU go, it was the best option before Sprott got involved...
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Tue Jan 05, 2016 9:22 am

What is this Management GREEN Card vote that they sent us?
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6 Iron
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by 6 Iron » Thu Jan 07, 2016 12:52 pm

I am undecided whether to sell now and be done with this, or tender my shares to Sprott, then sell them. Either way, I will probably use IAU as the eventual vehicle for this portion of gold. Anyone have a thought?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Thu Jan 07, 2016 1:30 pm

I don't know what to do... Considering replacing gold with 1/3 of a 3x fund.  At least that gives me tax advantages.  I don't have physical but maybe I'd buy a little to account for the additional counterparty risk
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by MWKXJ » Thu Jan 07, 2016 2:24 pm

Still holding GTU as I'm not sure how long it will take Sprott to assimilate Gold Trust.  The discount has narrowed from when I bought in at ~9% (it's now 1.5% last I'd checked) so I'm already ahead, but it is possible we could see a premium given the recent worries in foreign markets.  While a premium may never materialize, GTU did trade at a 29%(!) premium in early 2009.  Of course, if Gold Trust or Sprott get their way and the fund becomes a ETF then premium/discounts will be a thing of the past.

Recently voted both against Central's proposal to convert to a ETF and against Sprott's merger offer.  I want the GTU to remain a closed end fund.  Not sure what can prevent the merger or changeover to an ETF at this point.
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6 Iron
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by 6 Iron » Thu Jan 07, 2016 2:52 pm

The meeting for GTU shareholders Jan 15 appears to be to discuss terms for the merger/takeover. It appears to be a done deal. Based on this whole experience, I have little difficulty believing that Sprott may make this less than advantageous for GTU owners that hold out.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Thu Jan 07, 2016 4:53 pm

6 Iron wrote: The meeting for GTU shareholders Jan 15 appears to be to discuss terms for the merger/takeover. It appears to be a done deal. Based on this whole experience, I have little difficulty believing that Sprott may make this less than advantageous for GTU owners that hold out.
And they can do this how?
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