Buy What is on Sale! CEF Discounts

PITSelling today in the pits-gold and silver


Above is a chart of CEF, Canadien Gold (60%) and Silver (40%) bullion closed-end fund trading at a 6.5% discount today. ON SALE!  I have no clue if tomorrow the price will be higher or lower.

Note the premiums as high as 10% and currently 6.5% discount.


Learn more about interpretating sentiment indicators:

Long term sentiment

gold Sent 1

Silver Sent 1


A Great blog, Down the Rabbit Hole:

Though, I like miners more, but now is a good time to pick up tangible money at a discount. Pay 94 cents and get a dollar of gold and silver today–I will take it.  SOLD!  Miners make money on the arbitrage between their input costs and output prices. You don’t need a rising nominal gold price; you need a rising REAL gold price.

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Gold commodities

Now is the time for me to post on Yamana (by this weekend, I pray) because it is at a price $7.33 that I have purchased in the past and it may be a reasonable choice for a BASKET of miners.

Also, you want to see analysts pile-on negatively AFTER price has fully dicounted the news. I am not being contrarian or cynical, it is just how markets work–they DISCOUNT.

Yamana Gold suffers rash of stock price target cuts • 12:58 PM

Carl Surran, SA News Editor
  • Yamana Gold (AUY -1.2%) is lower after Morgan Stanley, Credit Suisse and Raymond James cut their price targets on the stock to $10.70, $10.50, and $10, respectively.
  • In the case of Morgan Stanley, the lower target still implies upside of more than 40%; AUY has said the Pilar mine in Brazil has shown improvements with output increasing M/M, but the ramp up is tracking modestly below expectations, thus the firm’s tempered outlook.
  • An update on Canadian Malartic and meeting quarterly expectations are potential catalysts expected over the next 6-8 weeks.

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Read the link below and the link within it to gain more understanding on gold and miners. 

One response to “Buy What is on Sale! CEF Discounts

  1. How can we know the “intrinsic” value of gold to know whether we are getting it at a discount or premium? I have the same question regarding currency exchanges (Brazilian Real – US Dollar). What should the “natural” exchange rate? How can we calculate that?

    Thanks in advance!

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