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 Posté le: Lun Sep 30, 2013 7:40 pm Sujet du message: Canadian mint’s gold and silver trading at a disc |
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{Canadian mint’s gold and silver trading at a discount}
Steve Higgins, senior manager, ETF compliance and investor relations, Royal Canadian Mint: investor demand for physical gold and silver remains strongBy Richard ChuTue Jul 9, 2013 12:01am PSTInvestors looking to buy gold and silver potentially below its market price can look to the Royal Canadian Mint.Since November 2011, investors have been able to buy gold stored at the mint’s high-security facility in Ottawa through an exchange-traded receipt (ETR) that trades on the TSX under the symbol “MNT.”The mint raised $600 million from the initial public offering and raised an additional $100 million last November when it started selling its silver through its silver ETR that trades under the symbol “MNS.” Until recently, both ETRs had been trading at a premium to the price of the precious metals represented by each receipt. MNT had been trading at a 6% premium to the net asset value of the underlying gold last August.But since February, both ETRs have been trading at a discount of between 1% to 5% to the price of the gold or silver represented by each receipt.Given that one ETR represents direct ownership of gold (0.0108 oz.) or silver (0.617 oz.),[url=http://www.moncler-sale.org]discount moncler jackets[/url], the discount is a bit of a surprise.Steve Higgins, senior manager of ETF compliance and investor relations for the mint,[url=http://www.moncler-sale.org]moncler down jackets[/url], noted that most people have to pay a premium to buy physical gold or silver given the cost associated with transportation,[url=http://www.moncler-sale.org]moncler sale[/url], storage and security associated with owning the investment.He also noted that year-over-year demand for gold and silver coins has jumped in recent months.“The first four months of the year just exploded with demand. The demand for gold coins went up by 125% and 88% for silver,[url=http://www.moncler-sale.org]moncler sale[/url], yet the ETR has been suffering.”The market price of both gold and silver has been hit recently as other precious metals-based exchange-traded funds have seen net redemptions.While he didn’t know how long the price discount for the mint’s ETRs would persist,[url=http://www.moncler-sale.org]discount moncler jackets[/url], Higgins said it didn’t make sense for it to continue.While most investors can trade the ETRs on the TSX like any other stock, the mint provides some of the most flexible redemption options to exchange the receipts for physical gold or silver. Investors can trade their receipts for gold starting with 10,000 ETRs for gold and 5,000 ETRs for silver. They can trade for the precious metal in bars or in coins.Until the discount disappears,[url=http://www.moncler-sale.org]moncler on sale[/url],[url=http://www.moncler-sale.org]moncler outlet[/url], there is a potential buying opportunity for investors who see gold’s long-term potential in light of the state of the global economy and monetary policy direction of the world’s key markets.“If you have a long-term view on gold,[url=http://www.moncler-sale.org]moncler outlet[/url], or if you’re holding gold in other forms, if you like to buy low and sell high, relative to the gold price,[url=http://www.moncler-sale.org]moncler on sale[/url],[url=http://www.moncler-sale.org]moncler down jackets[/url], other than something like this, how else can you get gold below the gold price?”Tags: commodity market, prices, metal, transport
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