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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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 8:07 pm

Not sure, but am a little concerned about this whole share exchange. Perhaps I am being a bit paranoid.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Thu Jan 07, 2016 9:50 pm

pugchief wrote:
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?
By bypassing the unit-holders' legal protections via taking advantage of those who fall for their fraudulent proxy solicitations.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Fri Jan 08, 2016 7:44 am

technovelist wrote:
pugchief wrote:
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?
By bypassing the unit-holders' legal protections via taking advantage of those who fall for their fraudulent proxy solicitations.
That statement may be accurate, but has nothing to do with Sprott penalizing the holdouts, which is not possible.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Fri Jan 08, 2016 8:07 am

pugchief wrote:
technovelist wrote:
pugchief wrote: And they can do this how?
By bypassing the unit-holders' legal protections via taking advantage of those who fall for their fraudulent proxy solicitations.
That statement may be accurate, but has nothing to do with Sprott penalizing the holdouts, which is not possible.
Really? Please explain.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by LazyInvestor » Fri Jan 08, 2016 8:39 am

So what should we do? Sell?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Fri Jan 08, 2016 9:09 am

technovelist wrote:
pugchief wrote:
technovelist wrote: By bypassing the unit-holders' legal protections via taking advantage of those who fall for their fraudulent proxy solicitations.
That statement may be accurate, but has nothing to do with Sprott penalizing the holdouts, which is not possible.
Really? Please explain.
Your premise is that those who are 'conned' into accepting the proxy bid will lose rights they currently have with GTU when the conversion to Sprott takes place, correct? If the GTU unit holders who 'are smart enough to' avoid said con, how exactly will Sprott be able to penalize them? Unless you consider the unwanted conversion a penalty, which I will concede it is, but I think 6Iron was worried they would somehow be penalized in some additional manner. Can you elaborate on what additional penalty would befall those who are forced to convert that would not also be cast upon those who voluntarily give up their proxy?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Fri Jan 08, 2016 10:25 am

pugchief wrote:
technovelist wrote:
pugchief wrote: That statement may be accurate, but has nothing to do with Sprott penalizing the holdouts, which is not possible.
Really? Please explain.
Your premise is that those who are 'conned' into accepting the proxy bid will lose rights they currently have with GTU when the conversion to Sprott takes place, correct? If the GTU unit holders who 'are smart enough to' avoid said con, how exactly will Sprott be able to penalize them? Unless you consider the unwanted conversion a penalty, which I will concede it is, but I think 6Iron was worried they would somehow be penalized in some additional manner. Can you elaborate on what additional penalty would befall those who are forced to convert that would not also be cast upon those who voluntarily give up their proxy?
Well, I'm not a lawyer or a securities expert, but it seems to me that once Sprott has control of GTU, they could force the non-converters out at a fixed price lower than those who sold. Sure, that might be illegal, but then their whole approach is of very dubious legality to me.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Fri Jan 08, 2016 2:09 pm

technovelist wrote:
pugchief wrote:
technovelist wrote: Really? Please explain.
Your premise is that those who are 'conned' into accepting the proxy bid will lose rights they currently have with GTU when the conversion to Sprott takes place, correct? If the GTU unit holders who 'are smart enough to' avoid said con, how exactly will Sprott be able to penalize them? Unless you consider the unwanted conversion a penalty, which I will concede it is, but I think 6Iron was worried they would somehow be penalized in some additional manner. Can you elaborate on what additional penalty would befall those who are forced to convert that would not also be cast upon those who voluntarily give up their proxy?
Well, I'm not a lawyer or a securities expert, but it seems to me that once Sprott has control of GTU, they could force the non-converters out at a fixed price lower than those who sold. Sure, that might be illegal, but then their whole approach is of very dubious legality to me.
I pretty sure they can't do that. If a conversion takes place, it will be at a fixed share ratio and will apply to everyone equally, regardless of whether or not they tendered their proxies. I'm no lawyer either, but I'm pretty sure that's how it works.
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Tue Jan 12, 2016 8:27 pm

So is this a done deal?  When is the conversion likely to occur?

Why is SGOL better than PHYS?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by pugchief » Tue Jan 12, 2016 9:12 pm

dragoncar wrote: So is this a done deal?  When is the conversion likely to occur?

Why is SGOL better than PHYS?
Why is SGOL better than IAU, which has a much lower expense ratio [besides being able to trade it free at Schwab]?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by dragoncar » Tue Jan 12, 2016 10:06 pm

pugchief wrote:
dragoncar wrote: So is this a done deal?  When is the conversion likely to occur?

Why is SGOL better than PHYS?
Why is SGOL better than IAU, which has a much lower expense ratio [besides being able to trade it free at Schwab]?
I don't know, although there seems to be a bandwagon.  From what I can tell, SGOL is Swiss and maybe holds less paper?  IAU may be less tax efficient.

I mean, what's so bad about PHYS even besides the tax churn of redemptions?
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Re: Sprott Intends to Make Exchange Offers for Central GoldTrust and Silver Bullion

Post by technovelist » Wed Jan 13, 2016 9:44 am

dragoncar wrote:
pugchief wrote:
dragoncar wrote: So is this a done deal?  When is the conversion likely to occur?

Why is SGOL better than PHYS?
Why is SGOL better than IAU, which has a much lower expense ratio [besides being able to trade it free at Schwab]?
I don't know, although there seems to be a bandwagon.  From what I can tell, SGOL is Swiss and maybe holds less paper?  IAU may be less tax efficient.

I mean, what's so bad about PHYS even besides the tax churn of redemptions?
Being taxed at the collectibles rate?
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