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Message:: [QUOTE="GoldFinger1969, post: 13644804, member: 73489"]The expectation of "Wall Street $$$" in 1988-89 was what fueled that infamous coin bubble.  Coins doubled or tripled in prices within 18 months or less. Open and closed-end funds can BOTH last indefinitely. The Tri-Continental CEF (TY) was set up in the mid-1920's. OEFs are the large, traditional mutual funds that accept new monies and create or destroy shares every day AFTER the close of trading at 4 PM.  CEFs are fixed-investment vehicles that issue a fixed amount of shares and can trade at a premium or discount to NAV, whereas OEFs track NAV 1-for-1. A CEF would probably be better for any coin fund, as coins are ILLIQUID and an OEF PM would have to SELL into a potential illiquid and/or falling market to raise cash.  A CEF PM wouldn't have to sell anything as the fund trades on the exchange during the day and you buy and sell just like a stock (with stock trading not taking or sending $$$ to the company in question). I would only set up a vehicle under a CEF structure....maybe as non-traded vehicle like the Blackstone BXREIT that has been in the news of late....with gated withdrawal limits. Would need to keep cash in the portfolio....precious metals ETFs....and the more "liquid" coins, if that term is applicable (like Saints, Morgans, Busts, Walking and Seateds -- all stuff that is popular).You might want to pay a dividend but it might be an ROC (Return of Capital).  A volatile asset that moves in spurts is not something that generates steady returns or income.Understand that while they and you or me might WANT to make money, this is an asset class that is HIGHLY SPECULATIVE and can go DECADES without generating positive returns.Ummm...you HAVE to get bogged down in that because whether the fund is public or private you can run afoul of the SEC Act of 1940 if you don't. The same problem exists today that existed in 1989: coins are a highly illiquid asset class that can't easily be sold to raise cash to meet redemptions (hence the CEF structure is preferable or a gated partnership).  You also won't be able to put billions to work in coins -- you'd jack up the prices -- and might have to limit this to $100 MM or so, maybe less. Also, would you buy common coins (like MS-65 and MS-67 Saints) or would you go for high-priced "Trophy" coins like the 1933 DE and other Top 20 most-expensive U.S. coins (I assume it'll be U.S. coins ONLY).[/QUOTE]

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