Yes, true on the costs, however, a bet on an asset which resides entirely outside the U.S. (a company) is taking a position in the currency of that country. If for example, the Canadian dollar would decline by 50% against the U.S. dollar then SGRCF.PK would decline by 50% due to the currency equivalency alone. SGR.V and SGRCF.PK always trade at par for currency equivalency. If they are slightly off it is only because the arbitre who makes money by doing this cannot find a market - rarely the case, IMHO.

That is why if you live in the U.S. and invest in Canadian junior miners you are protected against a falling U.S. dollar, despite the off set that the product of the company is sold in U.S. dollars - the value of the company is based on the entire asset priced in local currency. i.e. if someone purchases it, the sellers will ultimately need to be paid in Canadian dollars.