I am picking up some cef in my non commodity account.. what is the better pick GLD, CEF or some other mining shares? CEF is also silver and has a currency hedge (Canadian) so I prefer it to the USD based GLD.....any ideas?
I'm a bit of a gold bug and have traded through many miners.. If I recall correctly CEF has 80% of its assests in gold and the remaining 20% in silver, or some such ratio. I haven't owned CEF, but it's been on my list for awhile. It seems to move well with gold and silver. With GLD or SLV you are going to get movement based solely off the comodity. I have some friends with miner shares who continuously bitch about them being outperformed by the metals *this was before the correct began* and moved into products like GLD and SLV so they could have exact movement of the metal. I don't know how much capital you have, but obviously GLD and SLV even more will eat up considerable capital compared to CEF, which seems to move well while gold/silver appreciate. If I remember right CEF was one of Canadas first quasi ETFs, so I think it's been around for some time and is considered stable and secure. Honestly, if you feel this is just a correction and that the metals gold/silver espically have much more of a run left in them, AND available capital is limited CEF is a good bet. I have a large list of miners including Canadian juniors.. You can PM me if you wish.