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CEF (Sprott Gold & Silver Holdings): NEUTRAL for 1 Month

AMEX:CEF   SPROTT PHYSICAL GOLD AND SILVER TR
I own a long term position in CEF of 10% which I plan to add to. Looking for CEF to pullback in a possible scenario where equities sell off hard over the next month and a new high in the VIX . If CEF sells off along with equities in that scenario, that will be an extremely bullish setup for CEF and I plan to at least double my CEF position.

Lining up current time-frames with the 2008 crisis, one would NOT expect a significant pullback in gold in this stage (especially with the recent reported shortages in actual bullion): after its initial selloff with equities in 2008, gold rallied and sustained its rally (and even the gold miners bottomed end of October 2008, five months before the S&P bottom!). However, I see a 50-65% chance that this crisis will be much worse than 2008 and that we will see new highs in the VIX (unlike 2008) leading to panic selling of everything, including gold . Thus, I need to positioned to add substantially.

Apart from this possible new highs in the VIX scenario, I am very bullish on CEF .

Note: CEF and other Sprott instruments are a great way to own actual gold bullion: much better than GLD & SLV . This may be the crisis where owning actual gold and silver actually matters vs owning paper gold and silver .

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