Central Fund of Canada Limited (USA) (CEF)

CEF, Central Fund of Canada, is a more pure play on glad and silver than the respective ishares, since CEF backs its shares with more of each bullion. CEF is the next best thing to hoarding these metals in your house, and stands to outperform considerably once the U.S. dollar really starts to slide with housing declines, the rise of China, Brazil, and India's economies, etc. I see CEF reaching $12 in 2007.

Binve: 98.10 - Yes man.

Inflation is the long term problem to be dealt with. The Fed has stated many times it will combat deflation by any means necessary (printing money). The QE shock earlier this year was only the opening salvo. Gold / Silver are the best monetary inflation hedges. CEF is 50% Gold / 50% Silver, rigorous auditing, smart managment (well timed bullion purchases relative to NAV, non-dilutive offerings), and in Canada! See TMFSinchiruna's blogs and articles for the best writing on this fund.

If you believe in impending inflation, then you believe in CEF.
I'm a big fan of TMFSinchiruna/Christopher Barker, so its no surprise I've come to like this stock. Here are some well-thought and well-stated reasons, laid out much better than I could hope to do myself...
http://www.fool.com/investing/general/2009/04/03/an-asset-more-precious-than-gold.aspx
http://www.fool.com/investing/general/2008/12/31/gold-will-be-fine-in-2009.aspx
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=200839&t=01006124249416869148
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=204932&t=01006124249416869148

Trading below it's 13 day moving average with the average trending lower.

Reading their fundamentals I find their 5 yr. dividend growth to be 0.0% and their indicated annual dividend to be one cent.

Nothing for me to get excited about.

An easy way to own gold and silver in stock form. This is a great hedge against the upcoming great depression #2, when housing, credit and asset bubbles collapse. Set to soar as the US goes bankrupt and the US dollar collapses.

What I use in place of a money market fund.

CEF - Central Fund of Canada. Gold is going up! Silver is going up! I like Silver a lot more than I like Gold, because the current ratio is way off from its historic ratio. Right now the Gold/Silver ratio is ~50:1, where as historically it is more like ~20-10:1. Gold has a long way to run (see below) and Silver has even farther to run. The beauty of this fund is: 50% gold / 50% silver, rigorous auditing, and it is held in Canada! TMFSinchiruna is the most ardent propent of CEF and I agree 100%.

Gold and Silver - Relationship to the USD
Gold and Silver are money. Most people think they are commodoties, which is not inaccurate. To some degree they are; Gold is a reasonably useful industrial material, and silver is a highly useful industrial material. But gold and silver's value is because they have respresented wealth for so long. They are money, and they have value because they are non-dilutive.

Why is Gold and Silver going up? The question is incomplete. The complete question is why is gold and silver going up relative to the US Dollar. Remember, gold and silver are money. And like any form of money it must be valued relative to other currencies. Gold and Silver are going to continue their rise (in terms of USD) because of the extremely inflationary actions of the FED and the current government (and most likely the next government as well). It is a very sad and very unfortunate fact that the USD is being debased and devalued by the current government's fiscal policy. The US Dollar Index is on a very steady decline. There is no reason for it to rise in the current environment. The FED is printing money and trying to inflate the US out of its current economic dilemma. In order to make any kind of dent in inflation The FED has to take a much tougher stance. ... Their most recent "tough talk" on inflation... "We may not cut interest rates next meeting, and it might stay at 2% for the next serveral sessions"... Wow, that is the FED being "hawkish" on inflation. Meanwhile liquidity is being pumped into the system and the dollar is being devalued.

The recent gold and silver correction has provided a good buy-in opportunity. It is already on it's way out of the correction, having made up >50% of its retracement already. It is not too late yet. Once gold goes back over $1000 again, there is nothing on the horizon to hold it back. The FED has made it clear that dealing with inflation takes second seat to proping up the financial system. Unless something drastic (such as a major rise in interest rates) occurs, gold and silver will keep rising.

Logic.

Only buy when the premium is low and you some times have to wait for this. Once done you have solid bullion ownership as the beef and the occasional share offering as the gravy. They have consistently issued shares above the NAV and brought in a free dividend to the existing shareholders.

I have to disagree with some of the top fools here on caps. I believe gold is still a buy sub-$1,000 per ounce. While the run-up may be erratic I see no valid reason for it to drop. People who are panic'd buy gold. Governements who are panic'd buy either US Treasuries or gold. There is going to be a glut of US Treasuries soon. The dollar is going to drop in value, and we risk stag-flation. I would hold some gold. If I'm wrong it might drop 10-30%, if I'm right how much further will the market drop??? Of the gold to hold Central Funds of Canada is one of the purest plays.

No sign that the dollar will go anywhere but down for a good while. Gold and Silver are a currency investment as well as a commodity.

Waiting on the precious metals explosion...

Silver is headed much higher from here. March 18th, 2008 is not the end of the financial meltdown. It is only the beginning. Gold will continue to rally from here and silver will not only follow the price of gold but it will even lead it higher as it moves closer to the historical gold/silver ratio. CEF is an easy way to invest in several gold and silver miners and will move much much higher from here. As people continue to make the flight to safety CEF is a good place to place your bets.

Silver is the single best investment in the world right now, having been through what has to be one of the worst bear markets of all time between 1980 and 2001. Things don't just go up a little bit after that kind of bear market. Gold should do OK, but not as well as silver. Just try and buy some silver right now near spot prices and for immediate delivery and you'll find out that there is no REAL silver out there for sale - just the paper stuff.

Well once again this is a Defensive Play , To help cover for inflation, thus Gold is the Hedge . This is a good place to start with the Pure Gold Holding for a longer term hold.

I expect big time inflation in the US by 2010. CEF is outside the country. What I don't know is whether to buy it as CEF on the AMEX in $US or in Toronto as CEF.A in $CA.

Because currency is just paper.

over priced

Close-ended fund which hold approx. 50% gold and 50% silver. Great way toget exposure to both metals, especially as dollar fades (tanks?). Try to buy at discount to NAV.