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Gold/Mining/Energy : Gold Price Monitor

GDXJ 106.98

+0.2%

Dec 4 4:00 PM EST

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To: goldsheet who wrote (87486)	6/27/2002 3:29:39 PM
From: IngotWeTrust	Read Replies (2) of 116796

While you are articulate...as usual...in stating your case wrt CEF's discount and premium to NAV, you still miss the point. However, you again make MY point by your last sentence: "Historically closed end funds do not maintain premiums." Since CEF is totally unique in the 5000+ North American mutual fund investment universe because of it's strict investment into nothing but physical gold and physical silver, what would you suggest they do with money they raise? Buy back CEF shares in times of high prices and send their premiums even higher during periods of high demand for a limited mutual fund option? That would be the outcome of what it appears you are suggesting...unless of course you are wanting their premium to increase so that you could sell out you closed end shares for even more money. How about THIS scenario? Issue more shares in order to buy more metals because the price of their holdings is going to out strip the demand for their closed in fund? Works for me...and evidently they didn't issue enough new shares to take out the premium as you were hoping, thereby giving you an opportunity to acquire more at 3% premium to spot. Tell you what? Why don't you consider contacting any number of us who are independent miners with refined product to sell and purchase at spot or just below and you pay the shipping/courier costs, i.e., just skip the CEF. Or is storage a problem...

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