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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ogi who wrote (15311)	10/2/2008 12:19:00 AM
From: jimsioi	Read Replies (3) \| Respond to of 29622

ogi, don't think twice and don't look back... the chuckle was purely personal...mine I am long CEF and highly recommend it...unless of course it is trading at a premium to net asset value in excess of 15%, then it's a good idea to shift over to GLD and SLV...at least now, while the markets operate relatively freely, and await the correction back to 7% . If indeed you are interested in CEF you need to investigate the premium to net asset value swings....how they can work for you and how they can hit your investment in that closed end fund for a quick 10% loss even when the price of silver and gold are unchanged. Here is the web site's calculation of premium to net asset value...closed at 10+%, yesterday. centralfund.com The problem with that quote is that it is based on London closes not US, so you have to be careful... Was it really 10%? or 7% or 15%? In other words there are times when the waters are full of sharks, and others when they are good for swimming with the tide of higher PM prices...There's much more to know about CEF before investing than that it exists... I only mean to say that plus or minus a 10% premium to net asset value can effect your humor....one should know that.