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To: Freedom Fighter who wrote (220390)	2/11/2003 2:59:00 PM
From: Horgad	Read Replies (2) \| Respond to of 436258

Very simple. They hold bullion in a vault in Canada. I think the ratio is 50 ounces of silver to 1 ounce of gold. When they are selling for a premium you are basically overpaying for bullion and the opposite when they sell for a discount. cefa.com If you do a search on this thread, I think you will find that posters were recently very bearish on it the premium hit a peak of about 25%.

To: Freedom Fighter who wrote (220390)	2/11/2003 3:06:11 PM
From: Tommaso	Respond to of 436258

overpriced

To: Freedom Fighter who wrote (220390)	2/11/2003 3:16:14 PM
From: yard_man	Respond to of 436258

I know I've trashed this fund already, but can I offer something here -- there is good reason for it to trade at a premie for an extended period of time if there is a bull market in gold, unless the shares are redeemable in the metal -- think about the arbitrage for a minute -- how do you do it -- if you do it with physical, you've got a spread in and out -- even if you can do it with the futures, you've got uncertainty with that -- there really isn't a great way to arb it -- Folks waiting for that spread to disappear or even go back to a discount in a bull market are going to be disappointed, IMO. If you trust the fund managers to do what they say, it's probably a buy -- overpriced?? Don't guage that by the premium. Look at the volatility in the POG and you'll have a better idea.

To: Freedom Fighter who wrote (220390)	2/11/2003 3:29:31 PM
From: ild	Read Replies (1) \| Respond to of 436258

centralfund.com PREMIUM/DISCOUNT HISTORY SINCE INCEPTION etfconnect.com EDIT: Are you thinking about shorting? I was short it for a few days. Covered yesterday.