FOLLOW UP ON DWGOX BY MARKET STRATEGIST:I am an investment advisor, however, I strenuously advocate ownership of physical precious metals first and roughly 4/5 of my clientele have at least some positions in that regard

Steve,
Writing about your posting regarding DWGOX (formerly). Did some digging on this and was able to find the last effective prospectus as the standing prospectus is no longer in effect due to the fund's liquidation. The fella who submitted didn't get ripped off per se; when a fund is liquidated, the shares are sold - and yes, without permission. It is one reason I hate mutual funds. There are many MANY other reasons too. Anyway, this was an interesting fund in that it invested up to 80% of its assets in mining stocks, however, the rest could be used to purchase physical, non-numi coin, which is interesting.

Now, this was not a big fund in terms of dollar amount, however, (and this is pure speculation), I just wonder if they didn't get in trouble in some way and the 'settlement' involved the forfeiture of their metals positions and liquidation of the fund. This Dundee group runs a family of funds, including this one and also appears to run an extensive brokerage business in Canada and makes markets in various securities. Methinks maybe someone got toasted on a derivative bet and had to pony up some metals to keep it quiet, but that's my conspiratorial side leaking through.

I'm going to keep digging and will let you know if I can find out anything else if you'd like. I'm including the last prospectus along with the liquidation supplement. It sounds like the fellow who wrote in wasn't paying attention; he 'should' have gotten a copy of that supplement in the mail, but that may not have happened.

At any rate, we need to keep an eye out and see if this becomes a trend, especially among the smaller gold funds. As you said, just one more reason to hold it in your hand. For the record, I am an investment advisor, however, I strenuously advocate ownership of physical precious metals first and roughly 4/5 of my clientele have at least some positions in that regard. There are still a few I'm working on, especially with prices being what they are - the buy of a lifetime.

Anyway.. God bless, have a great day and keep your powder dry.

Nov 12, 2013

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