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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (68408)	9/30/1999 11:19:00 AM
From: Knighty Tin	Respond to of 132070

Ike, Why would it trade at a premium? The trite answer is because buyers want some and sellers aren't selling. One of the appeals of investment co.s is that you get a large diversified list and not all investors can afford the diversification on their own. But, all that being said, I don't pay premiums for CEFs. Whether or not I sell them when they go to premiums is another question. The answer is, for the most part, I tend not to be in them when they sell at premiums, as they usually sell at premiums when the market they invest in is down. Even this time around, when ASA was at a premium, I bought DeBeers, Impala, Amplats, Anglo American and US gold stocks instead of the fund. But, when those shares roared up in value and ASA went to a discount, I jumped aboard the CEF. Why more folks don't trade this way, I don't know. But, they don't and that helps us. If we are right, we make lots of money. If we are wrong about gold, the premium means we are not puninshed as much for our sins as we ought to be.