Q: Hi Team,
This question is about investing in a gold ETF. Sprott Physical Gold Trust (PHYS) I believe is a closed-end fund. I read this affects its ability to issue new shares so it cannot effectively track the price of gold. This means shares could trade at a premium to net asset value and not truly track the price of gold. Is that true and if so, is it a concern? Thank you. Michael
This question is about investing in a gold ETF. Sprott Physical Gold Trust (PHYS) I believe is a closed-end fund. I read this affects its ability to issue new shares so it cannot effectively track the price of gold. This means shares could trade at a premium to net asset value and not truly track the price of gold. Is that true and if so, is it a concern? Thank you. Michael