Ride out the Bear Market with Central Fund of Canada (CEF)

Desperate times call for desperate measures. And you have to be pretty desperate if we’re looking to Canada for an investment. Eh? flapjacks

Besides cooking up flapjacks, watching Hockey and drinking massive amounts of Canadian Lager, the folks at Central Fund of Canada Limited (USA) (Public, AMEX:CEF) have been buying up lots and lots of Gold.

As of October 31, 2005, the company's gold holdings were 614,242 fine oz. of physical bullion and 5,349 fine oz. of gold bullion certificates; and silver holdings were 30,728,142 oz. of physical bullion and 245,572 oz. of silver bullion certificates.

 

CEF tends to go up when the market goes down, so if you don’t believe the recent upward trend in the markets is sustainable, CEF is where you want to be.

CEF 1 Year Chart:

CEF 1 year Chart

However, if you think the price of gold is going to fall or the markets are going to turn bullish, run for the hills!

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If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.


hockey

With a P/E of just 4.52, CEF is a steal compared to gold mining companies like Yamana Gold (AUY) or Ivanhoe Mines (IVN).

CEF is also a great way to hedge against the American Dollar. The Canadian Dollar has risen 12% against the falling US Dollar in the last year. It’s also a good alternative to gold and silver ETF’s.

While you may not like Flapjacks or Hockey, CEF could make you some money.


Eric CheshierTheStockmasters.com - Finally Wall Street Commentary that means something.

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

 

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com.


 

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