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  • CEF or GTU

    I understand the 50/50 gold and silver balance of CEF. I feel secure from previous threads about their holdings. GTU is more of a pure gold play, but I notice they do have some certificates.

    Any thoughts?

  • #2
    Re: CEF or GTU

    fwiw, i own both. pulling out the underlying holdings, i'm 30% gold, 10% silver.

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    • #3
      Re: CEF or GTU

      I also have both, along with physical, Bullionvault, SGOL,along with some miners and (GLD and SLV that I use to sell covered call options).

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      • #4
        Re: CEF or GTU

        Originally posted by jiimbergin View Post
        I also have both, along with physical, Bullionvault, SGOL,along with some miners and (GLD and SLV that I use to sell covered call options).
        Wow..almost exactly the same here. Are you picking specific miners or miner ETFs like GDX(J)?

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        • #5
          Re: CEF or GTU

          Why speculate in the miners when you can buy a double gold etf? I've mentioned this lately with virtually no reaction, but I'm hard pressed to find a reason not to have this as an addition to physical gold and I see no reason to own intermediate & senior miners (I do see a case for undervalued juniors with potential for 2-20 fold gain based on geology if you understand that space), but that double gold etf strikes me as terribly attractive.
          --ST (aka steveaustin2006)

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          • #6
            Re: CEF or GTU

            Originally posted by steveaustin2006 View Post
            Why speculate in the miners when you can buy a double gold etf? I've mentioned this lately with virtually no reaction, but I'm hard pressed to find a reason not to have this as an addition to physical gold and I see no reason to own intermediate & senior miners (I do see a case for undervalued juniors with potential for 2-20 fold gain based on geology if you understand that space), but that double gold etf strikes me as terribly attractive.
            By double gold ETF, do you mean a leveraged ETF? Does it track the daily movement of the gold price via derivatives? If yes, then it will suffer the same decay issues as those which plague all of the leveraged ETFs, unless you catch it at the right time when gold is about to take off.

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            • #7
              Re: CEF or GTU

              Originally posted by ViC78 View Post
              By double gold ETF, do you mean a leveraged ETF? Does it track the daily movement of the gold price via derivatives? If yes, then it will suffer the same decay issues as those which plague all of the leveraged ETFs, unless you catch it at the right time when gold is about to take off.
              i STRONGLY agree with this observation. leveraged and inverse etf's exhibit a phenomenon i think of as "friction," wherein noisy sideways movements steadily erode your capital. they are useful for brief trades only during strongly trending markets.

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              • #8
                Re: CEF or GTU

                Yes, it's leveraged. The volatility premium is a well known issue with leveraged etfs, but you can do a once a week rebalance to work around this. See here for one comment on the solution.
                --ST (aka steveaustin2006)

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                • #9
                  Re: CEF or GTU

                  Originally posted by steveaustin2006 View Post
                  Yes, it's leveraged. The volatility premium is a well known issue with leveraged etfs, but you can do a once a week rebalance to work around this. See here for one comment on the solution.
                  what a pita. it's so much simpler to either buy twice as much or even buy a double position on margin, or use futures if you want leverage. why bother?

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