Comments on: Silver: Four Ways to Go Long http://investwithanedge.com/silver-four-ways-to-go-long Actionable Ideas for Your ETFs, Funds, & Stocks Mon, 15 Mar 2010 08:03:29 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Ron Rowland http://investwithanedge.com/silver-four-ways-to-go-long/comment-page-1#comment-2133 Ron Rowland Fri, 29 May 2009 13:32:17 +0000 http://investwithanedge.com/?p=4672#comment-2133 GTU and CEF are both closed-end funds that trade on US exchanges. We generally do not follow closed-end funds, especially when there are ETF alternatives. It is not possible to create/redeem shares of closed-end funds at their NAV, which is a prime characteristic of ETFs (see http://investwithanedge.com/the-soul-of-an-etf) Therefore, closed-end funds often trade at discounts/premiums to NAV. For example, CEF is currently trading at about a 10% premium. I do not understand why anyone would want to pay a 10% premium to own these shares. I can understand why some people like to buy closed-end funds at discounts and then hope those discounts disappear. But unlike ETFs, there is no guarantee or way to force this to happen. GTU and CEF are both closed-end funds that trade on US exchanges. We generally do not follow closed-end funds, especially when there are ETF alternatives. It is not possible to create/redeem shares of closed-end funds at their NAV, which is a prime characteristic of ETFs (see http://investwithanedge.com/the-soul-of-an-etf)

Therefore, closed-end funds often trade at discounts/premiums to NAV. For example, CEF is currently trading at about a 10% premium. I do not understand why anyone would want to pay a 10% premium to own these shares.

I can understand why some people like to buy closed-end funds at discounts and then hope those discounts disappear. But unlike ETFs, there is no guarantee or way to force this to happen.

]]> By: robert ozaine http://investwithanedge.com/silver-four-ways-to-go-long/comment-page-1#comment-2132 robert ozaine Fri, 29 May 2009 05:18:15 +0000 http://investwithanedge.com/?p=4672#comment-2132 Never hear about GTU..CEF..Canadian seems safer.Holding REAL gold,silver, not paper future contracts etc. Am I missing something? Never hear about GTU..CEF..Canadian seems safer.Holding REAL gold,silver,
not paper future contracts etc.
Am I missing something?

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