Gold & Gold Stock Analysis Message Board

To: The Vet who wrote (17659)	2/18/2009 11:24:58 PM
From: jimsioi	Read Replies (1) of 29396

The Vet, a couple of small points re CEF and GLD GLD does track the price of GOLD better, especially since CEF is half gold and half silver roughly and it swings as closed end funds do with premiums to NAV falling and rising on a daily basis by a percent or more. GLD's management fees have had the effect of slowly trimming its correlation to Gold to 97% and such will continue with time, such that I suppose at some time there will be sometype of reverse split... CEF does sell new shares about as often as it can these days, given its premium to NAV....There must be a 90 day waiting period between issuances, which is important to note. The last issuance knocked the premium from 15% to 7% and its climbed back to about 14%....so there hasn't been much harm done to long standing shareholders by way of the last issuances. Additionally, by selling new shares at a premium (5-7%), which has been happening, the issuance is slightly accretive to existing shareholders. Buy CEF after it issues new shares when the premium is 5-7% and ride the wave onward and upward. Look at the 2 yr. record...CEF is right smack in the middle of GLD and SLV's performance...and what brings up the rear...the miner ETF (GDX). finance.yahoo.com