Central Fund of Canada, a Good, Safe Gold and Silver Investment Review
Central Fund of Canada Limited from reviews is "The Sound Monetary Fund", founded in 1961.Central Fund's purpose is to hold gold and silver bullion on a secure basis for the convenience of investors in the shares of Central Fund.At least 90% of Central Fund assets are in gold bullion and silver bullion at all times.Owning shares of the Central Fund of Canada (CEF) is nearly a perfect alternative for owning physical gold. It is an investment vehicle that eliminates the physical storage issue.It is a closed-end fund that trades on the NYSE Amex Stock Exchange under the symbol CEF (it also trades on the Toronto Stock Exchange under the symbol CEF.NV.A). Review Advantages
It is easy to make a gold and silver bullion investment. Central Fund shares trade on the open market like any other listed stock. A call to your broker is all you need.
No contract, delivery logistics, storage, insurance or assay headaches for Share Owners.
No transactions fees or sales taxes of any kind, other than your broker's commission.
Safety: Central Fund's Gold and Silver Bullion is stored in the highest security rated treasury vaults at a Canadian chartered bank on an unencumbered, allocated, segregated and insured basis.
Long-term administration: Central Fund (CEF) was founded in 1961 by its Chairman.
Eligibility: Central Fund's Shares qualify for inclusion in many North American regulated accounts (IRA's).
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Factors You Should Consider
If you want to hold a blend of gold and silver in an IRA, then the Central Fund of Canada may be your answer.
Central Fund of Canada is an Alberta based Canadian company that passively holds gold and silver bullion which are both priced worldwide in U.S. dollars.
The prices of Central shares, quoted and traded on The American Stock Exchange and The Toronto Stock Exchange, may fluctuate more or less than the prices of gold and silver bullion.
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Administrator's Investors Enquiry Office: (905) 648-7878
Postal address
P.O. Box 7319,
Ancaster, Ontario
Canada L9G 3N6
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Central Fund Head Office: (403) 228-5861
Postal address
Hallmark Estates
Suite 805, 1323-15th Avenue S.W.
Calgary, Alberta
Canada T3C 0X8
E mail: info@centralfund.com
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Investment Policies & Restrictions
The governing articles of Central Fund require that at least 75% of Central Fund’s non-cash assets be invested in gold and silver bullion investments. This cannot be changed without shareholder approval. The stated investment policy of the Board of Directors requires Central Fund to maintain a minimum of 90% of its net assets in gold and silver bullion of which at least 85% must be in physical form.
Safeguards Central Fund’s bullion is stored on an allocated and fully segregated basis in the underground vaults of the Canadian Imperial Bank of Commerce (the "Bank"), one of the major Canadian Banks, which insures its safekeeping. The Bank may only release any portion of Central Fund’s physical bullion holdings upon receipt of an authorizing resolution of Central Fund's Board of Directors.
Additional insurance against destruction, disappearance or wrongful abstraction is carried by Central Fund on its physical gold and silver bullion holdings. Bullion holdings and bank vault security are inspected twice annually by directors and/or officers of Central Fund. On every occasion, inspections are required to be performed in the presence of both Central Fund's external auditors and bank personnel.
Central Fund is subject to the extensive regulations and reporting requirements of the United States Securities and Exchange Commission, two stock exchanges and various Canadian provincial securities regulatory authorities.
Central Fund is listed on the NYSE Amex (CEF) and on the Toronto Stock Exchange (CEF.A in Canadian dollars and CEF.U in U.S. dollars). Making a gold and silver bullion investment through Central Fund is as easy as calling one's stockbroker or investment dealer.
The stock exchange listings provide liquid markets for the Class A shares of Central Fund. The bid/ask spread is considerably less than the buying and selling prices of outright bullion purchases, especially for small transactions.
Unlike most other forms of bullion investment, there are no ownership costs paid directly by the investor.
All expenses of handling, storage and insurance of bullion are paid by Central Fund.
As well, there are no bullion assay charges to the shareholder upon the sale, redemption or liquidation of the Class A shares of Central Fund.
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Partial Article by Eric Englund, 2005
Serving as CEF’s Monetary Advisor Dr. Hans F. Sennholz—the eminent Austrian economist. Dr. Sennholz, as conveyed in Lew Rockwell’s essay Misesian For Life, "…was the first student in the United States to write a dissertation and receive a PhD under the guidance of Ludwig von Mises." To me, CEF could not have retained the services of a more qualified Monetary Advisor. This speaks volumes as to the quality of this closed-end fund’s management.
Ultimately, it is a personal decision as to whether or not one should own gold and/or silver. If you are looking for an investment vehicle that eliminates the physical storage issue, regarding precious metals, then CEF provides an answer.
If you want to hold a blend of gold and silver in an IRA, then the Central Fund of Canada may be your answer as well .... I am not an investment advisor. Nevertheless, perhaps this information will be useful for those readers who are interested in having an ownership stake in gold and silver.
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Disclaimer: The opinions and information expressed on this site are not intended to be taken as investment advice. It is to be taken as opinion only and you are encourage to complete your own due diligence when making an investment decision.
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