I posted on this before with the fact that it currently is trading at lower than normal premiums. Below is an article about it:

* Gold prices at record levels (In U.S. dollars unless otherwise stated)

"TORONTO, Sept 30 (Reuters) - Sprott Inc, the Canadian fund manager specializing in resource investments, said on Thursday the value of its physical gold trust had crossed the $1 billion mark with the metal at near-record prices.

The Sprott Physical Gold Trust (PHYu.TO: Quote) held 820,753 ounces of gold bullion as of Sept. 29, with total market value within the trust of $1.075 billion. The total net asset value of the trust reached $1.082 billion, trading at $11.43 per unit.

The trust, which allows investors to own gold bullion without the burden of handling it and maneuvering through market regulations, is listed on the NYSE Arca market and the Toronto Stock Exchange.

"It shows that the market has recognized this is a good structure to own physical bullion, because not only is it a security that trades ... but it is quite easy to buy, and they have the option to take delivery of the gold in the structure," said James Fox, president of Sprott Asset Management, the Sprott unit that manages the trust.

Sprott did an initial public offering of the trust on March 3 for 40 million units at $10 per unit, which raised $400 million.

Holding units of the trust also allows investors to hold physical gold without having to deal with issues like storage or navigating buy and sell spreads to get it back into the financial system.

The trust holds its bullion in the Royal Canadian Mint, a crown corporation that essentially guarantees its safety. Unit holders are permitted to take delivery of the gold on a monthly basis if they so desire.