Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: 4figureau who wrote (2633)	1/14/2003 10:12:57 AM
From: Tommaso	Read Replies (1) \| Respond to of 5423

For years CEF was trading at a substantial DISCOUNT to the value of the bullion it owned. Every time anyone brought up owning gold, I pointed out what a wonderful way to do it this was. Now it is selling at 16% PREMIUM to its holdings. Why not just buy gold at a 1% spread and put it in your own safe deposit box ot else use Kitco's depository service? One could do this, short CEF, and have a 15% hedged position as large as one wanted. Of course, people who are holding CEF now justify it for the convenience. Funny how until recently it was not thought convnenient. Incidentally, I sold all my CEF too soon--when it went to a premium.