Here's a long term view. I've been taking samples of the premium/discount ever since 2016. When I average all the premiums across these sample, I actually get 0.70% because there were also discounts in the past. This isn't a completely scientific reading but it does show that this premium fluctuates, and on average, may "even out". The same was true for CEF over many years.Doesn't mean they are going to do anything about it....
Also if they do add more gold and the price stabilizes then I might swap back 1:1 from cgl.c
As it is Gold has been pretty volatile lately and the premium has been pretty stable at 10%+
The premium entirely came off MNT today.As it is Gold has been pretty volatile lately and the premium has been pretty stable at 10%+
I've just switched my CGL.C holdings with MNT as it's now trading at -1.2% discount to gold.My tracking (gold price x exchange rate x fractional gold held = actual unit value)
1805 x 1.3 x 1.010564 = 24.79 and it is trading at 24.50 or a discount of -0.29c which is -1.16%
So, a 1.2% discount to actual gold value.
Can someone comment if CRA will allow claim of capital loss when switching between CGL.C and MNT? They both track gold in Canadian dollars, but one is ETF and the other ETR and also behave quite differently. One has to just compare the graph of the funds to see that they are not identical properties.I've just switched my CGL.C holdings with MNT as it's now trading at -1.2% discount to gold.
Thanks. As far as I know you can do this only if the ETFs tracking similar asset classes are based on different underlying indexes. With different ETFs tracking the same index, capital loss selling would not be allowed. In your example it will be allowed as VCN tracks FTSE Canada All Cap Domestic Index and XIC tracks S&P/TSX Capped Composite Index.You can do it with any ETF even if they track similar asset classes. For example, you can sell XIC and buy VCN at the same time and if you have a capital loss on XIC you can claim it.
Another $50M offering in QBTC continuing to hit away at NAV premiums on both perhaps.
Yeah I'm not sure if you can claim cap loss if switching between these 'pure bullion' ETFs. It's true that one can claim capital loss switching, say, XIU to XIC but that's because they track different indexes.This is why I am not sure about the pair CGL.C and MNT. They are not tracking an index, but suppose to track the price of gold in Canadian dollars. Still they are quite different the way they are structured (ETF vs ETR) and have different features (MNT allows the exchange for physical gold, etc).
Agreed. After reading the CRA interpretation bulletin for identical properties even though they have different properties, fees and structures, it does not seem like capital loss selling will be allowed in this case.CGL.C and MNT may be considered identical properties as they really do track the same thing. Yes the mechanisms are different but I feel like they are too similar. One can't point to an index and say, they are different indexes.