Fair enough. But a 40%, or even 10% deviation over a 4-6 year period is not noise. Sorry I stand by my long held position. Closed ended funds don't belong in a PP, though they may be fine for speculative purposes.Pointedstick wrote:Day-to-day fluctuations are just noise.Reub wrote: GTU once again .4% lower than GLD and IAU on an up day! How is this regular underperformance explained again?
GTU Vastly Underperforming IAU and GLD
Moderator: Global Moderator
-
Ad Orientem
- Executive Member
- Posts: 3483
- Joined: Sun Aug 14, 2011 2:47 pm
- Location: Florida USA
- Contact:
Re: GTU Vastly Underperforming IAU and GLD
Trumpism is not a philosophy or a movement. It's a cult.
-
blueskieslover
- Junior Member
- Posts: 5
- Joined: Wed Mar 12, 2014 8:38 pm
Re: GTU Vastly Underperforming IAU and GLD
I think its important to look at start dates.
http://imgur.com/a/UTb83
When we look at the first image, we see that morningstar atleast is showing the NAV from only 2006 even though the fund launched in 2003. Maybe someone can shed some light on this?
If we look at the second picture we see that the from the day we morningstar is tracking NAV and compare that to IAU, the lines are practically on top of one another, showing very little difference. I interpret this as investors paying a different price and factoring all the premium / discounts for the CEF, that GTU is doing what it is suppose to. The NAV is tracking gold, however the price per share is not tracking gold... yet. In time will this change? I have no clue. That being said there certainly is a way to profit off of this, buy GTU when gold is down and buy cheap, and buy IAU when gold is going up. You gain the best of both worlds.
I currently hold both IAU, and GTU. In the future i'll look to hold physical bullion to mitigate these risks.
http://imgur.com/a/UTb83
When we look at the first image, we see that morningstar atleast is showing the NAV from only 2006 even though the fund launched in 2003. Maybe someone can shed some light on this?
If we look at the second picture we see that the from the day we morningstar is tracking NAV and compare that to IAU, the lines are practically on top of one another, showing very little difference. I interpret this as investors paying a different price and factoring all the premium / discounts for the CEF, that GTU is doing what it is suppose to. The NAV is tracking gold, however the price per share is not tracking gold... yet. In time will this change? I have no clue. That being said there certainly is a way to profit off of this, buy GTU when gold is down and buy cheap, and buy IAU when gold is going up. You gain the best of both worlds.
I currently hold both IAU, and GTU. In the future i'll look to hold physical bullion to mitigate these risks.