Where is CEF getting $21.00 Ag?

[Ebie]

Au = 1808/oz
Ag = 21.00/oz
Ag bars on Apmex = $25.50

So where is CEF buying Ag for $21.00?
Or is CEF selling at a premium price to the paper price?
Or, is CEF...

 

[southfork]

What is CEF?? I'll be having some of that 21 ag

 

[Ebie]

What is CEF?? I'll be having some of that 21 ag

They don't deliver.
As you know...

 

[Mujahideen]

Au = 1808/oz
Ag = 21.00/oz
Ag bars on Apmex = $25.50

So where is CEF buying Ag for $21.00?
Or is CEF selling at a premium price to the paper price?
Or, is CEF...

What size bars? I’ve heard there isn’t a shortage of the large bars.

 

[Ebie]

What size bars? I’ve heard there isn’t a shortage of the large bars.

10 oz
Not at the paper price.
For a premium.

 

[Goldbrix]

Au = 1808/oz
Ag = 21.00/oz
Ag bars on Apmex = $25.50

So where is CEF buying Ag for $21.00?
Or is CEF selling at a premium price to the paper price?
Or, is CEF...

What is CEF?? I'll be having some of that 21 ag

CEF - (Sprott Physical Gold and Silver Trust ) a few years back kept the old symbol .
Sprott buys hedging contracts direct from miners. Miners are guaranteed a set price for production reducing the risk of lower market prices.
They have some gold contracts that do the same. These are not there sole buying techniques.
Even though SPROTT sells PMs to its shareholders there is a rather large set of criteria and hoops that they require buyers to jump through and since it is in Canada damn hard for a US shareholder to meet their requirements.
I've been in CEF when it was a stand alone fund. I just bought back in last year under the SPROTT BANNER.

NO YOU CAN"T HAVE that $21.00 Ag . The requirements & hoops increase YOUR costs.

 

[Jodster]

CEF - (Sprott Physical Gold and Silver Trust ) a few years back kept the old symbol .
Sprott buys hedging contracts direct from miners. Miners are guaranteed a set price for production reducing the risk of lower market prices.
They have some gold contracts that do the same. These are not there sole buying techniques.
Even though SPROTT sells PMs to its shareholders there is a rather large set of criteria and hoops that they require buyers to jump through and since it is in Canada damn hard for a US shareholder to meet their requirements.
I've been in CEF when it was a stand alone fund. I just bought back in last year under the SPROTT BANNER.

NO YOU CAN"T HAVE that $21.00 Ag . The requirements & hoops increase YOUR costs.

I think PSLV is redeemable in physical, but I haphazardly believe it's threshold is $50k.

 

[Ebie]

CEF - (Sprott Physical Gold and Silver Trust ) a few years back kept the old symbol .
Sprott buys hedging contracts direct from miners. Miners are guaranteed a set price for production reducing the risk of lower market prices.
They have some gold contracts that do the same. These are not there sole buying techniques.
Even though SPROTT sells PMs to its shareholders there is a rather large set of criteria and hoops that they require buyers to jump through and since it is in Canada damn hard for a US shareholder to meet their requirements.
I've been in CEF when it was a stand alone fund. I just bought back in last year under the SPROTT BANNER.

NO YOU CAN"T HAVE that $21.00 Ag . The requirements & hoops increase YOUR costs.

Does cef hold real metal or just contracts? I thought that they claim that they have real physical?

 

[Goldbrix]

Does cef hold real metal or just contracts? I thought that they claim they have real physical?

YES, They HOLD physical PMs. The contracts with miners are for actual physical at set prices.
Monetary /fiat in minimal amounts are held for the round of purchases.
The prospectus is available to read on the website.

 

[Ebie]

YES, They HOLD physical PMs. The contracts with miners are for actual physical at set prices.
Monetary /fiat in minimal amounts are held for the round of purchases.
The prospectus is available to read on the website.

Good post.
Is it selling at a premium to the paper price(s) yet?

 

[Ebie]

YES, They HOLD physical PMs. The contracts with miners are for actual physical at set prices.
Monetary /fiat in minimal amounts are held for the round of purchases.
The prospectus is available to read on the website.

Do you really trust that they have the actual metal?

 

[Goldbrix]

Far more than SLV. I've been in SLV until I reread that prospectus. I drop it on an upswing in the first four mos. it was offered. I've been in CEF twice and 10 tens longer than the time I was in SLV.
OBTW: CEF actually gets it physical audited twice a year. When was Fort Knox or SLV audited for accuracy.

 

[Ebie]

Far more than SLV. I've been in SLV until I reread that prospectus. I drop it on an upswing in the first four mos. it was offered. I've been in CEF twice and 10 tens longer than the time I was in SLV.
OBTW: CEF actually gets it physical audited twice a year. When was Fort Knox or SLV audited for accuracy.

"gets it physical audited twice a year"
What does that mean?
Do paper promises count in the audit?

 

[WillA2]

If you can't hold it you don't own it.

 

[Jodster]

"gets it physical audited twice a year"
What does that mean?
Do paper promises count in the audit?

Ebie, you can go and download the complete audit sheet from their website. It’s over 3,500 pages and had the serial number and weight of each bar.
Do some due diligence and stop being such a douche about this.

 

[Ebie]

Ebie, you can go and download the complete audit sheet from their website. It’s over 3,500 pages and had the serial number and weight of each bar.
Do some due diligence and stop being such a douche about this.

At some point in time, it will not be possible to reconcile the paper price of PMs, as reflected in CEF share price, with the real price of PMs. At that point, either CEF will sell at a significant premium, or, not...or possibly some very complicated rules relating to interconvertibility and the new digital dollar...
That time is coming soon...I think...

 

[Ebie]

From the internet:

Re: Ft Knox
"...According to the U.S. Treasury, the U.S. government holds 261 million fine troy ounces of gold...
100 percent of the U.S. Government’s gold reserves in the custody of the Mint has been inventoried and audited,” former Treasury Department Inspector General Eric Thorson told the House Financial Services Committee in 2011. “Furthermore, these audits found no exceptions of any consequence.”

97 percent of the gold was checked and sealed in an audit that ended in 1986, and annual partial audits by a third-party accounting firm continued after that, he said. Approximately half the U.S. Treasury’s gold is located in the storage facility at Fort Knox, Kentucky...."

 

[Goldbrix]

From the internet:

Re: Ft Knox
"...According to the U.S. Treasury, the U.S. government holds 261 million fine troy ounces of gold...
100 percent of the U.S. Government’s gold reserves in the custody of the Mint has been inventoried and audited,” former Treasury Department Inspector General Eric Thorson told the House Financial Services Committee in 2011. “Furthermore, these audits found no exceptions of any consequence.”

97 percent of the gold was checked and sealed in an audit that ended in 1986, and annual partial audits by a third-party accounting firm continued after that, he said. Approximately half the U.S. Treasury’s gold is located in the storage facility at Fort Knox, Kentucky...."

Funny you can find this on the internet but NOT the Prospectus for CEF.