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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: bull_dozer who wrote (191348)8/31/2022 2:10:37 PM
From: bull_dozer  Read Replies (1) of 217610
 
Sprott Physical Gold Trust As A Sentiment Tool

I like sentiment indicators of all types, and I like the more obscure ones even better, the kind that almost nobody watches. This week’s chart shows one such sentiment indicator for gold prices.

The Sprott Physical Gold Trust trades under the symbol PHYS, and it is a special type of investment vehicle that is different from an ETF like GLD. It does own physical gold, and has very specific rules about redeeming shares for that gold. Its shares generally trade at a slight discount to the net asset value (NAV), but that discount varies over time. You can read more at their web site,

https://sprott.com/investment-strategies/physical-bullion-trusts/gold/#.

Most of the time the spread between the share price and the NAV is negative, meaning that you can buy the shares for less than they are actually worth. But since exchanging those shares for the actual gold is a little bit difficult, you cannot easily arbitrage that negative premium for a profit.


mcoscillator.com
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