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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (59139)	4/22/2006 3:31:19 PM
From: Chaka	Read Replies (1) \| Respond to of 110194

CEF is at 18% premium That calculation uses prices based on London fix. Gold is up 2% since then and silver up over 6%, so premium is less than 14% - still huge. I have been thinking of boxing my CEF for a while but haven't pulled the trigger yet (thankfully!). centralfund.com

To: ild who wrote (59139)	4/22/2006 5:31:20 PM
From: Tommaso	Read Replies (1) \| Respond to of 110194

That's hard to believe--but true. More than 18% premium for CEF. That might in itself signal a temporary mania that has got gold ahead of itself. Since Waterhouse wouldn't short it for me, I put the money into another little uranium stock, Pitchstone Exploration (PXP.V). That's a huge arbitrage opportunity for someone: short CEF and go long GLD. Of course, these "perfect" plays have a way of screwing up, which may in fact have happened to anyone who did that and got squeezed in both directions on Thursday. Not for the faint-hearted or those with thin wallets.