Unlike the ETF's, CEF literally does buy the gold and silver and store it, and even has it independently audited. They are closed-end, meaning that that that amount of gold/silver will not be bought on paper just to sell again next week. So whatever they do buy will truly be off the market. And, with all of the speculation about whether the ETF's could actually take delivery, it is understandable that CEF would be at a premium. The asking price (10.50) is closer to real value, so the price of CEF will come down to a lower premium for the next few weeks as the funds short CEF and long the new issue, which, unfortunately, they can pick up.

All of this equals a brief buy-in period for CEF if you believe in gold.