CEF - Proposed Rights Offering 3/29/11: 6 MILLION OZ SILVER

[Country]

For those of you who are invested in CEF, a rights offering was announced tonight and CEF is down 3% in the after-market trading. Additional shares will be offered by CEF management, the proceeds of which will go to buy GOLD and SILVER for the fund. These funds will be used to withdraw approximately 6 MILLION TOZ OF SILVER AND 120,000 TOZ OF GOLD, PHYSICAL GOLD AND SILVER, FROM AVAILABLE VAULT STOCKPILES. Like previous offerings, there will be a temporary impact, but it has proved to be non-dilutive. A possible opportunity may avail itself short-term if the CEF NAV falls too much. CEF has been trading around 8%-10% over NAV recently as most investors believe they have the goods, unlike the MS products (SLV and GLD which trade at a discount to NAV).

http://www.centralfund.com/pressrel_files/2011/Press%20Release%20-%20Announce%20-%20Mar%2029.pdf

[Country]

Based on what I see in the financials are current holdings on 4/7/11:

CEF Holdings 1/31/11
1.482M TOZ GOLD
75.209M TOZ SILVER
$77M cash

After Rights Offering purchases:
1.694M TOZ GOLD
76.9M TOZ SILVER
$80M cash

Net Purchases:
212,000 TOZ GOLD - $307.4M
1.7M TOZ SILVER - $66.3M

[68Camaro]

So that's why CEF was down.... I'm a bit late noticing this, but had noticed the drop

[Country]

So that's why CEF was down.... I'm a bit late noticing this, but had noticed the drop

CEF will be down for only a short period of time. The premium, currently at +3.1%, will go back up to 8% soon. It is undervalued right now, and premiums around 3% are buying opportunities. I've bought some this week taking advantage of this discount.

[68Camaro]

So that's why CEF was down.... I'm a bit late noticing this, but had noticed the drop

CEF will be down for only a short period of time. The premium, currently at +3.1%, will go back up to 8% soon. It is undervalued right now, and premiums around 3% are buying opportunities. I've bought some this week taking advantage of this discount.

Yeah - unfortunately I've got to wait until Tuesday - first day I can next shift funds. Hopefully it'll give me a few more days before it starts up, but I have no control over that.

[Country]

So that's why CEF was down.... I'm a bit late noticing this, but had noticed the drop

CEF will be down for only a short period of time. The premium, currently at +3.1%, will go back up to 8% soon. It is undervalued right now, and premiums around 3% are buying opportunities. I've bought some this week taking advantage of this discount.

Yeah - unfortunately I've got to wait until Tuesday - first day I can next shift funds. Hopefully it'll give me a few more days before it starts up, but I have no control over that.

You probably got another week or so before the premium goes back up. You can check it out on the following website:

http://www.centralfund.com/Nav%20Form.htm

[68Camaro]

You probably got another week or so before the premium goes back up. You can check it out on the following website:

http://www.centralfund.com/Nav%20Form.htm

Got it - I was looking at it last night while planning for next week. Have a friend that was CFO of the fund during the 80s. He reminded me of that just on Tuesday.