# Redeeming MNT for cash



## Lurker (Sep 29, 2021)

I was looking through the FAQs on the Canadian Gold Reserve ETR (MNT) website and noticed the statement shown below. Is this essentially a 5% redemption fee (which seems excessive) or is it a fair price for the shares?

"CASH REDEMPTION: The cash redemption price (the "Cash Redemption Price") paid by the Mint will be equal to 95% of the lesser of (i) the volume-weighted average trading price of the ETRs on the TSX for the last five trading days prior to and including the Redemption Date, and (ii) the net asset value of the ETRs on the Redemption Date."


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## Spudd (Oct 11, 2011)

Sounds like a 5% fee to me. But honestly, nobody would ever do this, they'd just sell it on the open market. This is only for institutional investors.


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## james4beach (Nov 15, 2012)

Spudd said:


> Sounds like a 5% fee to me. But honestly, nobody would ever do this, they'd just sell it on the open market. This is only for institutional investors.


You have to redeem in massive blocks, and yeah, there's a fee -- because they actually load the gold into a Brinks car, with armed guards, and send it to you!

I have been in contact with the administrator of this Mint program and can tell you there actually was a holder who did a large physical redemption, I think it was last year. So investors certainly can choose to do it, if they want. The metal is there, and the Mint will send it to you.

I really like MNT overall, but the problem is the premium/discount fluctuations. It's basically a closed end fund, because there is a constant amount of gold sitting in their vaults. As the shares trade, they may go above or below the fair value NAV. Personally I don't see this as a huge problem, and my gold position in my RRSP is entirely in MNT since it's a long term holding.


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