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Gold/Mining/Energy : Gold Price Monitor

GDXJ 106.70

-0.3%

4:00 PM EST

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To: IngotWeTrust who wrote (87470)	6/27/2002 1:11:08 PM
From: goldsheet	Read Replies (2) of 116796

<increased CEF demand supports CEF premium to NAV> Likewise, increased CEF supply should reduce premium to NAV They will take almost all of the proceeds from the share offering and put into into gold and silver at a lower premium to spot (3%) than the CEF premium to NAV (12%). This effectively means they think buying gold and silver directly is a better deal than buying CEF shares ! When CEF was at a big discount, it made sense to buyback shares, and at a premium it makes sense to offer more shares. It just seems to me that when CEF is buying shares (at a discount) I would be also be a buyer and when CEF is selling shares (at a premium) I'd rather be a seller, too ! Historically, most closed end funds do not maintain premiums.

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