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Looks like a cheap way to hold real gold rather than buy and store.
They say you can redeem for bullion, plus fees.
What do you guyz think?
 

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I don't think having it in a vault at the mint would satisfy the shotgun-and-beef-jerky crowd. But for those who use it as a speculative investment and not a hedge against the apocalypse, sure. I would note though that IAU has a MER of 0.25%, which is cheaper than the Mint.
 

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Questrade lets you buy gold in either your RRSP or non-reg account. With a $0.10/oz/month, with gold at $1700, its effectively an MER of 0.07%. Much better than RCM's 0.35% or IAU's 0.25%.
 

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I wrote some of my thoughts about MNT in this other thread
http://canadianmoneyforum.com/showthread.php/65498-GOLD-ETFs

I like the look of MNT for Canada-domiciled pure gold exposure. It trades occasionally at a slight discount to NAV (yesterday I saw a discount of -1.3%) but generally has done a very good job tracking the price of gold. The only disadvantages of MNT that I see are:

1. The Mint could be privatized. If this happens, the MNT shares are no longer guaranteed by the government and the price could plummet
2. Gold holdings are unallocated bars

In this respect, I think GTU (Central GoldTrust) is a better "pure gold" fund. But I'm still considering MNT.
 

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I bought my first MNT a few weeks ago after watching it and being convinced that it does a great job tracking the price of gold in CAD. The fee (taken by the Mint) is 0.35% per year which also makes it very attractive. It's Canadian-domiciled, of course.

As far as I can tell, MNT and CGL.C are the only two ETFs that track gold in CAD. Of these I decided to go with the larger pool ... MNT holds $535 million while CGL.C holds just $69 million.

MNT is working its magic today... the only positive security in a sea of red. Even bonds are getting hammered!

(Clarification... CEF.A which is gold & silver is also mildly positive)
 

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If this is anything like last year then we may see a nice run in gold after the Fed rate hike in December. Gold was weak then and after that we had a nice run in gold, silver and the stocks.
 

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Gold in CAD was flat today over the Fed meeting, and MNT is mostly unchanged this week.

I've played that game of catching a falling knife, which is always painful, but I still think that (in the long term) this is a reasonably good place to buy. I'm curious to see how much farther gold falls.
 

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Silver last 46 has been up 30 times from first of Jan to Feb 19. The gains & losses have averaged over+6%/year buy on Dec 24th another.5%

Gold over 45 yr period has averaged an annual gain of about 3.5% over this time period if start a little earlier about mid Dec. Though it seasonal trade is from about early August till mid to late Feb from mid Oct to mid Dec flat period though if sell & buy back beta slippage will go against gains.
 

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Center banks behave like the old odd-lotters, When gold hits the next major decline the central banks will be selling into the decline just like they did in final decline into 1999-2001. If you buy gold when central bankers are selling into decline you most likely will catch the next major bottom.
 

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If their serious of keeping the gold scam going, I believe they need India to come through. If they are able to confiscate gold from the citizens of India and slow the demand from India, this could keep gold down after a possible seasonal rally here. The gold and silver market is completely rigged and technicals don't matter much when they can dump as much un-backed paper ounces as they desire onto the COMEX.

The India gold source can provide the fuel needed to satisfy the demand from China and overseas.

Here is link of latest scams being brought to light.

http://www.reuters.com/article/us-silver-lawsuit-idUSKBN13X1QZ

http://business.financialpost.com/news/fp-street/deutsche-bank-documents-alleged-to-show-smoking-gun-that-scotiabank-and-others-rigged-silver-prices

This is from mainstream sources so you can see how badly rigged it all is and I knew it for years but no one would believe it. Having said this you need to know you are not buying into a normal market but one that is badly rigged.
 

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I thought I'd share, since I've been buying a few 10s of K of MNT lately.

MNT is doing a good job tracking pure gold over time. However on days that gold is weak, it often trades at 0.5% to 1.0% discount to NAV. For those in a buying mood (like me) that gives a good opportunity to buy a bit cheaper than fair value.

The bid/ask spread is, unfortunately, quite large. These weak days can really work in your favour and I've been able to fill at nearly 1.0% discount to NAV. You can easily calculate its NAV in real time, using the market price of gold, USDCAD exchange rate, and fraction of beneficial gold ownership as per the MNT web site. Similarly if you wanted to sell MNT, you should obviously do that on a day that gold is strong.

I'd love to see more daily volume in MNT. It's still more liquid than CGL.C and PHY.U, which are the only 'pure gold bullion' competitors in Canada. By the way, CEF.A is far more liquid, however it has the problem of trading at a persistent large discount to NAV, and is a mix of gold & silver bullion -- not pure gold.
 

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By the way, CEF.A is far more liquid, however it has the problem of trading at a persistent large discount to NAV, and is a mix of gold & silver bullion -- not pure gold.
Why do u not love the NAV discount that CEF.A provides? The reason of it not being pure-gold is legit, but silver is still in the same asset-class at least.
 

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Why do u not love the NAV discount that CEF.A provides? The reason of it not being pure-gold is legit, but silver is still in the same asset-class at least.
I love it for purchasing/accumulating shares, and CEF.A is still a great long term holding.

However one of the reasons I hold gold is for my permanent portfolio allocation and the diversification it provides. The fluctuations in discount/premium means that CEF.A is a pretty bad way to "track the price of gold". For the purpose of my permanent portfolio, I want something that tracks gold well.

CEF.A is still very good for long term precious metal investment.
 

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With the imminent demise of CEF.A coming up, MNT seeks to be picking up in volume and liquidity. For many decades, CEF.A was the only bullion fund with significant TSX-traded volume and liquidity. Since the fund will be dissolved, that's about to disappear, leaving a void for the CAD-centric bullion trader.

However if you look at stock charts you will see that MNT volume started spiking around the time of the CEF.A announcement. I've noticed volume and liquidity on MNT getting better through October, so it's possible that some of the market participants are shifting from CEF.A to MNT.

This could be really good for MNT's future.

Taking a look at current quotes, MNT has traded 101K shares and has a 3 cent bid/ask spread. In comparison CGL.C (the only other CAD traded bullion ETF) has traded less than 1K shares and has a 4 cent bid/ask spread.

Over the last month, MNT has averaged 150K daily volume and CGL.C averaged 24K. My guess is that MNT will emerge as the de facto CAD-priced gold ETF.

(Background: Sprott kept harassing Central Fund management to the point where they have basically agreed to hand the assets over to Sprott. There will be a shareholder vote coming up next month but the majority common shareholders have already approved the deal.)
 

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I hold a bunch of MNT and have been occasionally checking how well its price tracks the real-time NAV of the underlying gold. To do this I calculate the real-time gold value from spot futures and USD/CAD rate and compare it to the midpoint of the bid/ask during trading hours.

MNT trades with a persistent, slight discount to NAV. In my measurements over the last couple of years, I've found it averages -0.7% but at times it's worse. Currently for example it trades at -1.5% below NAV which agrees with the Mint's calculation on their web site.

I'm not sure what causes this persistent discount, but it's relatively steady over the years. MNT seems to still track gold's movements (both short and long term) a little bit better than CGL.C, but both seem to do a fine job. For example, 1 year price changes:

IAU converted to CAD: -1.8%
CGL.C actual price: -1.8%
MNT actual price: -1.5%

Checking these three over time, I've found they all track pretty close to each other. Often, IAU slightly outperforms though apparently not in the trailing 1 year. Any one of these is probably a fine way to hold gold in the portfolio, though I prefer the ones domiciled in Canada.
 

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For those of you who invest in MNT, beware that the share price on the exchange varies a bit from the ideal price (NAV). You can easily calculate a real-time fair net asset value by going to Mint web site for reserves and selecting net asset value. The fair value for the shares is: (gold price) x (USDCAD exchange rate) x (fraction of oz represented by a share), all of which you can get real time values for throughout the day, for example using Kitco and XE for quotes.

Example:
Gold (USD) as per Kitco = 1281
USD/CAD as per XE = 1.34465
Fraction as per Mint = 0.0106201
Fair NAV = 18.29

At the same time, the mid point on the exchange (half way between bid & ask) is 18.32, meaning the shares trade at a slight premium to NAV. If placing trades, you should be careful to place your orders close to NAV.

I have seen the price on the exchange vary between -1.5% up to +0.2% with an average of about -0.6% versus NAV. I'm not sure why it tends to be negative.
 

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MNT has now hit all time highs, rising above its previous peak in 2012. Seriously, a great job by the Mint creating an effective bullion tracking ETF with low fees.

Then again... what kind of a nut would want gold in their portfolio? Sure, it tends to rise when stock markets are weak and fear is high, it acts as a currency and protects against weakening domestic currencies, protects against inflation, and it acts as a diversifying third asset in a portfolio

... but other than that, it's a useless, unproductive asset that you can't eat and which pays no dividends! Probably best to avoid it. If you ever have any doubts about that just talk to any advisor and they will remind you that gold has no place in a portfolio.
 
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