Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24
RECESSION When Yield Curve Uninverts - 8th Sep 24
Sentiment Speaks: Silver Is Set Up To Shine - 8th Sep 24
Precious Metals Shine in August: Gold and Silver Surge Ahead - 8th Sep 24
Gold’s Demand Comeback - 8th Sep 24
Gold’s Quick Reversal and Copper’s Major Indications - 8th Sep 24
GLOBAL WARMING Housing Market Consequences Right Now - 6th Sep 24
Crude Oil’s Sign for Gold Investors - 6th Sep 24
Stocks Face Uncertainty Following Sell-Off- 6th Sep 24
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES - 6th Sep 24
AI Stocks Portfolio and Bitcoin September 2024 - 3rd Sep 24
2024 = 1984 - AI Equals Loss of Agency - 30th Aug 24
UBI - Universal Billionaire Income - 30th Aug 24
US COUNTING DOWN TO CRISIS, CATASTROPHE AND COLLAPSE - 30th Aug 24
GBP/USD Uptrend: What’s Next for the Pair? - 30th Aug 24
The Post-2020 History of the 10-2 US Treasury Yield Curve - 30th Aug 24
Stocks Likely to Extend Consolidation: Topping Pattern Forming? - 30th Aug 24
Why Stock-Market Success Is Usually Only Temporary - 30th Aug 24
The Consequences of AI - 24th Aug 24
Can Greedy Politicians Really Stop Price Inflation With a "Price Gouging" Ban? - 24th Aug 24
Why Alien Intelligence Cannot Predict the Future - 23rd Aug 24
Stock Market Surefire Way to Go Broke - 23rd Aug 24
RIP Google Search - 23rd Aug 24
What happened to the Fed’s Gold? - 23rd Aug 24
US Dollar Reserves Have Dropped By 14 Percent Since 2002 - 23rd Aug 24
Will Electric Vehicles Be the Killer App for Silver? - 23rd Aug 24
EUR/USD Update: Strong Uptrend and Key Levels to Watch - 23rd Aug 24
Gold Mid-Tier Mining Stocks Fundamentals - 23rd Aug 24
My GCSE Exam Results Day Shock! 2024 - 23rd Aug 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Best of the Gold and Silver ETF's

Commodities / Credit Crisis 2009 Mar 17, 2009 - 08:17 PM GMT

By: Peter_Degraaf

Commodities

Best Financial Markets Analysis ArticleAmong the Gold and Silver ETF's there is one that is superior to all the rest.

Early on March 17 th Max Hulbert reported that his Gold Newsletter Sentiment Index (which tracks leading gold advisories), had dipped into negative territory.


Three weeks earlier this same index had shown gold analysts to be in a bullish mode by 61%, and now some 15 trading days later, these same analysts are 16.5 bearish, and advising their clients to be short gold for the time being.

For contrarians this is good news, and indicates that a buying opportunity in gold is likely on the horizon. As a rule, gold analysts are most bullish near a top and most bearish near a bottom. What say the charts?

Featured is the weekly gold chart. The blue arrows point to bottoms in the 7 – 8 week gold cycle. Three out of the last cycles lasted just 6 weeks. The latest cycle appears to have bottomed right on schedule, during week number eight. Confirmation that the bottom is ‘in' will come once price closes above the green arrow. The overall trend is up, and the supporting indicators (RSI and MACD) are both positive. A closing price above the green arrow will start the next rally towards the resistance at 1,000.00.

Historically gold almost always puts in a bottom in mid March (THAT'S NOW).

Featured is the weekly silver chart. Price bottomed in October and rose by 75% to 14.75.

The Fibonacci target for the pullback has been met at the blue arrow. The supporting indicators are positive (green lines). As soon as price rises above the 50WMA (blue line), the next target is at the green arrow.

Historically silver almost always puts in a bottom in late February or early March.

So now that you are ready to buy into a gold or silver ETF, why not go for the best of the best? CENTRAL FUND OF CANADA is not called an ETF, but it performs the same function. Founded in 1961, (long before the modern ETF's), CEF operates under the laws of the Province of Alberta Canada .

The founder is its current chairman, Mr. Philip M. Spicer. The company issues shares from time to time at prices that are non-dilutive to its existing owner's net asset value per share, and it always buys additional gold and silver bullion prior to striking a price with the subscribers to its offerings. The company invests in gold and silver and its bullion holdings are always stored on an unencumbered, allocated, segregated and insured basis within a Canadian chartered bank's treasury vault storage facilities. The physical gold and silver bullion is audited on a semi-annual basis in the presence of Ernst & Young LLP, the company's auditors. This auditing factor puts Central Fund head and shoulders above the gold ETF's that have become so popular during the past few years.

The company's shares qualify for inclusion in many North American regulated accounts.

Annual expenses are below 0.45% (low for this type of company). These expenses are taken from the company's cash position. If the company does not have an adequate amount of cash on hand to meet its commitments, a small portion of its holdings may be sold to raise the cash required. The company has not sold any of its bullion holdings for several years and it has enough cash on hand to meet its current level of expenses for several years!

A minimum of 90% of Central's assets are tied up in gold and silver at all times.

Central Fund never leases any of its gold and silver, and for those who worry about a repeat of the 1933 US government gold grab, the fact that this gold is outside of US jurisdiction puts that fear to flight.

Whereas several articles have been published that detail possible risk involved in the investing in GLD and SLV, no such risk exists with Central Fund.

The chairman recently issued this statement: “Our bullion is stored in separate compartments within the bank, with the name of the owner clearly indicated on the compartment, and on top of each pallet of bullion the name of the owner is indicated. This prevents the bank from using the asset for any unauthorized purpose. We also pay Lloyds of London for coverage of any possible loss”.

Daily volume in CEF ranges between 500,000 and 1 million shares. For CEF/A.TO the average is between 100,000 and 200,000 shares per day.

Central Fund updates its financial situation on a daily basis at its website www.centralfund.com As of March 16 th these assets consisted of 1,049,328 ounces of gold (56.9% of total), and 52,460,793 ounces of silver (40.4%). The balance is ties up in cash and other assets. Current market cap is 1.9 billion dollars US – 2.4 billion dollars CDN.

The activities of Central Fund are controlled by a board of directors consisting of people who are knowledgeable in the precious metals field, and all of whom are current shareholders.

To the best of my knowledge CEF qualifies for 401K and CEF/A.TO for RSP investment purposes (but check with your accountant to make sure).

For additional information contact the company at info@centralfund.com

Featured is the CEF daily chart. Price is rising within a well defined channel. Volume been dropping during the latest pull-back (red and green arrows), a positive sign.

The supporting indicators are at support levels (green lines). A breakout at the blue arrow will start the next bullish rally.

Happy trading!

By Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He issues a weekend report on the markets for his many subscribers. For a sample issue send him an E-mail at itiswell@cogeco.net , or visit his website at www.pdegraaf.com where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

DISCLAIMER: Please do your own due diligence. I am NOT responsible for your trading decisions.

Peter Degraaf Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

michael walsh
18 Mar 09, 17:37
CEF auditors

Good article - Governments,Bankers and Comex are crooks but must mention role of Ernst Young auditors during the collapse/nationalisation of Irelands 3rd largest bank - if they had been Bernie Ms auditors - The Bernie would still be trading.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in