Central Fund of Canada Limited (USA) (CEF)

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.