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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: ild who wrote (275180)	1/26/2004 3:23:43 PM
From: Tommaso	Read Replies (2) of 436258

>>>Dundee has this discount because of risk.<<< A few years ago, CEF also had a "discount because of risk" because everyone knew gold was in a bear market. Dundee is no more risky than the stocks in its portfolio. Among its larger holdings are companies that I might not want to hold large positions on individually, but the diversification reduces risk. For anyone who wants to speculate on the future of gold mining companies, I see no better way to do it. I said exactly the same thing about CEF five years ago: that anyone who wanted to speculate on the price of gold could not do better than to buy bullion at a discount by owning cef. I was amazed when it went to a 15% premium. I don't think DPM is ever likely to go to a premium, but a 25% discount is a pretty good cushion.

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