Sprott’s CEF (PHYS) Up On Major Gold ETF’s

Eric Sprott Closed End Fund received a lot of criticism as well as praise before and after the IPO in February. Some said it was overpriced because of the premium priced into the fund and that delivery only being allowed once a month was too illiquid. Others said it would be the ETF to knock off GLD because of it meet London Good Delivery Standards and allowing open audits. Here’s how it has performed against GLD and PowerShares’ DGL since the IPO.

As you can see, Sprott’s ETF is up almost 10% on both competitors despite a recent pullback. I think it’s a long way away if it’s ever going to take out GLD but the numbers absolutely do not lie.

If you had $10,000 to invest when PHYS IPO’ed on Feb 26th and bought GLD, you would have been able to purchase 91 shares on the open and today your amount would total $11,268.26. Likewise, if you had purchased PHYS, you would have bought 1036 shares and would be worth $11,979.27. This is a modest 6% increase and the spread will likely grow if PHYS can get past the red volume and back to the $12 level. From there it’s got to stay above $12 and get past the $12.15 mark for the gloves to come off.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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