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Central Fund of Canada Limited Message Board

  • Does anyone know of fair value for CEF? Are there any reports from even sell side people giving opinion that anyone knows of? Thanks.

    Sentiment: Hold

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    • Since CEF is a CEF (closed end fund), you can check on its NAV any given day. Do a search on CEF NAV to find the website since yahoo no longer lets me post a url. Last NAV is as of jan-25-2013 and is $20.78

      Probably not a bad time to pick up some CEF shares. Just be aware that it is listed as a PFIC for taxes which means a potential headache for those holding shares in a taxable account here in the USA. I say keep it in an IRA.

      • 1 Reply to clrodrick
      • The PFIC status is not a headache at all it is a plus. Most investors never even realize that it exists. As a PFIC investment you are subject to 15% tax as opposed to bullion which is taxed as ordinary income. To have you shares qualify as a PFIC investment each year one needs to file a QEF (Form 8621) with the IRS along with your taxes & the sooner the better to make sure the PFIC status for your shares stands up. Failure to file the QEF means only that you pay the normal rate of capital gains on shares once sold instead of the PFIC rate. This is very different from UBTI like one receives from an MLP & is a headache in an IRA. I have owned CEF for years and I can tell you it is 1 extra form of paperwork but no real hassle considering the savings. The PFIC is one of the many huge advantages that CEF, PHYS, PSLV & others hold over GLD & SLV. My 2 Cents....

        Sentiment: Strong Buy

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