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To: ild who wrote (169466)	5/31/2002 7:12:59 PM
From: Oblomov	Read Replies (1) \| Respond to of 436258

>>I think arbitragers would be all over it. Then why does it trade at a discount?

To: ild who wrote (169466)	6/1/2002 10:58:47 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 436258

ild, that was part of the reason. But it also sold at a premium because there is absolutely nothing out there that is similar in the open-end world. First Eagle/Sogen comes closest. So, when people panic into buying gold and they don't want the dollar, ASA is the easy choice. But the main reason it sells at discounts and premiums, IMHO, is that CEF buyers tend to be very unsophisticated. They buy high yield funds just for the high yields and could care less about the premiums they pay. They buy equity funds with high payouts even if they're only getting their own money back. These folks would never go near a bond future or a gold future, if they even know such things exist. ASA is a gold fund that has no "load" and the best mines in the world and a great record that goes back for decades.