CapitalTime

Articles on investing and capital management, with a quantitative focus.

#prp - Permanent Risk Parity (how I invest)

Beware the high premium on MNT

2020-06-24

My allocation to gold is currently spread across several different ETFs, as I wrote about earlier.

One of these, MNT, is currently trading with a large premium to NAV (net asset value) meaning that the share price is significantly above fair value. During market hours, you can see the premium or discount by visiting the Mint’s web site and looking under Investors: Net Asset Value.

Currently, the premium is a whopping 14% to 15%. Beware of this high premium; if you buy MNT today, you are over-paying for it. I would not buy this at the current premium.

I switched the gold ETF in my model portfolio to CGL.C since this has tracked the price of gold more accurately.

— Jem Berkes