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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (31925)	10/30/2004 8:47:00 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 39344

It is because it went from a near discount to a meaningful premium! Something that should reverse itself I think. <Are there any other funds that invest mainly in silver bullion or are in at least 40-50% silver?> Not that I know of.

To: Square_Dealings who wrote (31925)	10/31/2004 11:18:32 PM
From: TrueScouse	Read Replies (1) \| Respond to of 39344

Michael: <I'm not sure how it works but CEF is up 84% from 2001 while gold and silver are up about 50%> With respect, being not sure how it works is part of the problem. Gold and silver are up over 50% in USD since 2001, but not in most other currencies and certainly not in Canadian $. Meanwhile, CEF is a Canadian fund with its stash of gold and silver stored here in Canada. In USD, CEF (Amex) is up about 90% since 2001 from what I can see. However, CEF.A (Toronto) is only up about 50%. i.e. For a Canadian investor, there has been no leverage over the PM prices by buying CEF rather than the physical. Meanwhile CEF is trading at a premium to NAV instead of a discount, so it is very likely to correct in that respect. And both US and Canadian investors would have been far better off investing in a basket of good junior PM stocks for the past 3 years (around +400% for Canadians such as me) rather than in CEF. So, CEF has been quite a good MT investment for US investors over the last 3 years (as opposed to buying the physical PMS), and it could have been traded effectively ST as well. But they would have been much better off trading or investing in a diversified PF of junior PM stocks -- and this is especially true for a Canadian. I hope this helps explain the limitations of investing in CEF. JMHO, Howy