Title: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on December 09, 2012, 08:19:17 PM Announcing the Litecoin Gold Trust Trading as GOLD on the Litecoin Global Stock Exchange https://www.litecoinglobal.com/security/GOLD managed by John Galt Asset Management john.galt.asset.management@gmail.com Note: Weekly reports will no longer be posted in this thread. For the latest information on GOLD traded on LTC-GLOBAL, please look here: http://forum.litecoin.net/index.php/topic,780.0.html (http://forum.litecoin.net/index.php/topic,780.0.html) This post is a summary. Please read the prospectus before investing. A copy of the prospectus can be found here: https://docs.google.com/document/d/1jwsxyjs1KQqeScAz__55BgIbkgRBRvCE71eHoz65hjo/edit (https://docs.google.com/document/d/1jwsxyjs1KQqeScAz__55BgIbkgRBRvCE71eHoz65hjo/edit). Highlights:
The Litecoin Gold Trust is an exchange-traded fund listed on the Litecoin Global Stock Exchange. The trust holds physical gold bullion and issues shares representing its holdings. The purpose of the trust is to provide a way in invest in gold through litecoin without the inconvenience of holding physical gold bullion. The objective of the trust is for the value of the shares to reflect the price of gold owned by the trust, less the trust’s expenses and liabilities. The trust receives gold in exchange for shares and delivers gold in exchange for redeemed shares. The ability to exchange of gold for shares is what maintains the nominal value of the shares at the value of the gold that they represent. The trust is not actively managed and does not engage in activities designed to profit from changes in the price of gold. With the exception of cash held to pay expenses and facilitate operations, the fund invests exclusively in physical gold bullion. The gold is unencumbered, fully allocated, and will never be borrowed, lent, or used as collateral. It is stored in a vault at Wells Fargo and is audited periodically. The initial value of a share is 1/1000th of a troy oz. of gold, though fees may reduce that value over time (see below). Regardless of the nominal value, shares can trade at a premium or a discount to that value. The trust does not intend to pay dividends or cash distributions. The trust issues and redeems "baskets" of shares on a continuous basis (a basket equals the equivalent of 1 troy ounce of gold in shares). A 5% fee is charged for redeeming a basket of shares. The person redeeming the shares is also responsible for paying shipping and insurance costs. Persons may redeem fractions of a basket at the discretion of the sponsor, but the fee may be substantially higher. The size of the initial offering will be 1000 shares, or 1 troy oz. of gold. The only ordinary expenses paid by the trust is a fee of 1% per year paid to the sponsor. The fee is paid issuing an appropriate number of additional shares and assigning them to the sponsor, so the amount of gold that a share represents will slowly decrease from the initial 1/1000th ounce. The sponsor currently agrees to waive the fee. The fund allows a person to invest in gold with the following benefits over owning physical gold:
Liquidity should not be a concern. Bid and ask walls will be maintained at approximately +/- 5% of the spot price in order to ensure liquidity. There will always be shares to buy at a reasonable price and shares can always be sold at a reasonable price. Assets of the trust are listed here and are updated periodically: https://docs.google.com/spreadsheet/ccc?key=0Am3m7aRNI-JbdGhaT2RvWC1aeFFaSEMzMnE4OWkzMFE (https://docs.google.com/spreadsheet/ccc?key=0Am3m7aRNI-JbdGhaT2RvWC1aeFFaSEMzMnE4OWkzMFE) A picture of the gold held by the trust can be seen here: https://docs.google.com/open?id=0B23m7aRNI-JbcC1RRXZhaEFvLUE (https://docs.google.com/open?id=0B23m7aRNI-JbcC1RRXZhaEFvLUE) I appreciate any kind of feedback -- criticisms, comments, and suggestions. Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on December 09, 2012, 08:20:58 PM Weekly Report Sunday, December 9, 2012 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.6205 LTC Basket Size: 1000 shares Commentary This week was a slow week -- perhaps a refreshing change after the last several weeks of big changes in the prices of LTC and gold. The NAV has risen from 20.6 LTC to 21.6 LTC (+4.9%) due to a moderate drop in the price of LTC from $0.0837 to $0.0787 (-6.0%) offsetting a small drop in the price of gold from $1726 to $1702 (-1.4%). Keep in mind that the NAV depends on the prices (in other currencies) of both gold and LTC. When the price of gold rises more than the value of LTC, the NAV rises, and vice versa. The amount of trade between gold and LTC is virtually nil, requiring the NAV to be calculated using dollars. The difference is small, although it might occasionally present some arbitrage opportunities. Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on December 15, 2012, 10:33:11 PM Weekly Report Saturday, December 15, 2012 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.9841 LTC Basket Size: 1000 shares Commentary Another slow week for LTC and gold. The NAV has risen slightly from 21.6 LTC to 22.0 LTC (+1.9%) with a small drop in the price of LTC, going from $0.0787 to $0.0772 (-1.9%), and an even smaller drop in the price of gold, going from $1702 to $1696 (-0.4%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on December 23, 2012, 08:18:06 PM Weekly Report Sunday, December 23, 2012 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.3372 LTC Basket Size: 1000 shares Commentary It may be just a coincidence, but the values of gold and Litecoin have been strongly correlated for a few weeks now. The NAV has been very flat. Last week the NAV dropped a little (mostly on Friday) from 22.0 LTC to 21.3 LTC (-3.2%), with the price of LTC remaining steady, going from $0.0772 to 0.0774 (+0.3%), and a small drop in the price of gold from $1696 to $1652 (-2.6%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on December 30, 2012, 09:32:02 PM Weekly Report Sunday, December 30, 2012 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 22.1591 LTC Basket Size: 1000 shares Commentary Last week the NAV rose moderately from 21.3 LTC to 22.2 LTC (+4.2%), with the price of LTC dropping moderately from $0.0774 to $0.0748 (-3.4%), compared to the essentially unchanged price of gold going from $1652 to $1658 (+0.4%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on January 05, 2013, 08:08:46 PM Weekly Report Saturday, January 5, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 23.7464 LTC Basket Size: 1000 shares Commentary Last week the NAV jumped from 22.2 LTC to 23.7 LTC (+6.8%), due to the price of LTC dropping from $0.0748 to $0.0694 (-7.2%) compared to the small drop in the price of gold from $1658 to $1648 (-0.6%). As mentioned before, the steady drop in the value of LTC has highlighted the value of investing LTC in assets such as gold. Edit: The NAV was incorrectly reported as 24.2073 LTC. It has been corrected. Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on January 12, 2013, 10:15:53 PM Weekly Report Saturday, January 12, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 24.0252 LTC Basket Size: 1000 shares Commentary After the sharp rise in the NAV over the previous week due to the the drop in the value of LTC, the NAV has risen slightly this week from 23.7 LTC to 24.0 LTC (+1.3%). Both the prices of gold and LTC have changed only a little since last week, but both in a direction of a rising NAV. The price of LTC fell slightly from $0.0694 to $0.0690 (-0.6%) and the price of gold rose slightly from $1648 to $1658 (+0.6%). The value of investing in this fund From time to time, people have questioned the value of investing in this fund, and also indirectly the value of investing in gold. First, anyone but die-hard gold bugs and Keynesians will acknowledge that there are both pros and cons to investing in gold. The main values of gold as an investment are as a hedge against the various forms of currency devaluation and as a diversification of risk.
The downside to gold as an investment is primarily due its lack of utility beyond being a currency. Furthermore, its utility as a currency has also been diminished. As a result, gold is very speculative.
As for the value of this fund, first it must be emphasized that the value of this fund is determined primarily by the value of the gold that it holds. The benefits of owning shares in this fund over owning physical gold have been repeated several times, but here they are again:
Now, there are some drawbacks:
Please weigh these pro and cons before judging the value of investing in this fund (or in gold). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on January 19, 2013, 09:07:51 PM Weekly Report Saturday, January 19, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 27.1900 LTC Basket Size: 1000 shares Commentary It has been a great week for LGT at the expense of LTC. This week the NAV has resumed its upward climb due primarily to the the continuing weakness in the value of LTC. The NAV has risen dramatically this week from 24.0 LTC to 27.2 LTC (+13.3%). While the price of gold has risen only slightly from $1658 to $1689 (+1.9%), the price of LTC has plunged to $0.0621 from $0.0690 (-10.0%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on January 27, 2013, 07:23:26 PM Weekly Report Sunday, January 27, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 26.9919 LTC Basket Size: 1000 shares Commentary It has been a very volatile week. The NAV began the week by jumping more than 10% to 30.4 LTC, just shy of the all-time high of 30.5 on 11/20/2012. This was due to a 10% drop in the value of LTC, which I believe was a result of money moving out of LTC and into BTC, fueling the BTC bubble that ultimately popped on the 25th. Following that quick rise, the NAV steadily declined over the remainder of the week to finish about where it started due to a recovery in the price of LTC. Ultimately, the NAV has fallen only slightly this week from 27.2 LTC to 27.0 LTC (-0.7%). The price of gold dropped over the last couple days from $1689 to $1660 (-1.7%) and this was matched by an overall small drop in the price of LTC from $0.0621 from $0.0615 (-1.0%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on February 03, 2013, 07:36:52 PM Weekly Report Sunday, February 3, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 23.5405 LTC Basket Size: 1000 shares Commentary Overwhelmed by a huge increase in the value of LTC from 0.0615 LTC to 0.0709 LTC (+15.3%), the NAV has fallen this week from 27.0 LTC to 23.5 LTC (-13.0%). While the price of gold initially rose to $1678, it has settled back down to $1669, rising slightly from $1660 (+0.5%), the price at the beginning of the week. Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on February 10, 2013, 02:58:45 AM Weekly Report Saturday, February 9, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.7483 LTC Basket Size: 1000 shares Commentary Another strong increase in the value of LTC from 0.0709 LTC to 0.0767 LTC (+8.2%) is the primary reason that the NAV has fallen sharply this week from 23.5 LTC to 21.7 LTC (-7.7%). Meanwhile, the price of gold was steady, falling only slightly from $1669 to $1668 (<0.1% change). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on February 18, 2013, 02:12:44 AM Weekly Report Saturday, February 16, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.6473 LTC Basket Size: 1000 shares Commentary The small drop in the NAV from 21.7 LTC to 21.6 LTC (-0.5%) hides the volatility this week in both the LTC and gold markets. After starting the week at $0.0767, the price of LTC continued its steep rise up to around $0.0810, but ultimately fell back to $0.0745 (-2.9%). Meanwhile, the price of gold has fallen moderately from $1668 to $1612 (-3.4%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on February 24, 2013, 07:05:14 PM Weekly Report Sunday, February 24, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 23.1247 LTC Basket Size: 1000 shares Commentary Despite a small drop in the price of gold from $1612 to $1576 (-2.2%), the NAV rose strongly from 21.6 LTC to 23.1 LTC (+6.9%). This is primarily due to the continuing fall in the price of LTC, this week dropping from $0.0745 to $0.0682 (-8.5%). Title: Re: [LTC-GLOBAL] Litecoin Gold Trust Post by: JohnGalt on March 04, 2013, 07:42:36 AM Weekly Report Sunday, March 2, 2013 Overview Assets: 1 oz. Shares Outstanding: 1000 NAV: 21.0967 LTC Basket Size: 1000 shares Commentary The price of gold this week was a little volatile but ended up rising only slightly from $1576 to $1582 (+0.4%). Meanwhile the price of LTC hit bottom at the beginning of the period and rose very strongly throughout the week. It ended up at $0.075, up from last week's $0.0682 (+10.0%). The result was big drop in the NAV from 23.1 to 21.1 (-8.7%). Please note: This is the last update that will be posted in this forum. Updates will continue to be posted in the Litecoin forum here: http://forum.litecoin.net/index.php/topic,780.0.html (http://forum.litecoin.net/index.php/topic,780.0.html) |