The Central Fund of Canada (NYSE:CEF, TSX:CEF.A) is a $3 billion closed-end fund whose sole mandate is to invest in gold & silver bullion. As of yesterday's market close the Central Fund had 61.1% of its assets in gold bullion and 38.4% of its assets in silver bullion:

Click to enlarge


CEF trades like a regular stock, however, its publicly traded share price often diverges from its net asset value. As you can see CEF is now trading nearly 10% below its net asset value (NAV) on the New York Stock Exchange. This means that by buying shares of CEF an investor is able to purchase gold at roughly $1,052/ounce and silver at roughly $14.60/ounce.

Historically CEF has traded in a roughly +/- 3% band from its NAV and the oscillation from premium to discount and back again has always swayed with investor sentiment towards the precious metals space:

CEF_net_asset_value(CEF share price in green, NAV in orange)

Source: CEFConnect

A 9.8% discount to NAV is extreme by any historical standard and helps to highlight the current bleak investor outlook on the precious metals space.