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Strategies & Market Trends : Natural Resource Stocks

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To: jimsioi who wrote (3365)	11/14/2003 10:40:16 PM
From: The Vet	Read Replies (1) of 108683

On CEF (metal closed end fund) Premium to NAV Do you think that premium may vanish when Exchange Traded Gold becomes available. My experience with GOLD.ASX the Australian ETG is that the spread is actually closer than spot gold and there is a slight but consistent premium to spot but nothing like 8%. Because gold can be added and removed (redeemed) to GOLD.ASX so easily and for a very modest charge, it is always arbitraged by the market makers in gold to remain very close to the actual price. This close linkage to gold and silver isn't really available to CEF or to GTU.UN either for that matter. If you haven't looked at the way it is done you can find a very clear and easy to understand discussion on GOLD.ASX here... goldbullion.com.au

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