The buzz the past few trading days has been the issuance of a new gold closed-end mutual fund with some unique features -- redemption (not spiritual), or the ability to take delivery of 400 ounce gold bars, and potential tax advantages.Toronto-based Sprott Asset Management raised $400 million in a Feb. 26 IPO of the Sprott Physical Gold Trust (PHYS). On March 3, the fund will have cash from settlement and will start buying 400 ounce gold bars. It will do so through bullion dealers in Toronto and London. The gold purchased will be with nearly the full sum of proceeds and delivered as London Good Delivery to the Canadian Mint where it will be stored.
New Gold Fund Delivers the Goods
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