4-Star Funds Poised to Pop: Central Fund of Canada

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Central Fund of Canada (NYSE: CEF ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Central Fund of Canada and see what CAPS investors are saying about the closed-end fund right now.

Central Fund of Canada facts

Inception	September 1983
Market Cap	$5.9 billion
Investment Approach	Central Fund's purpose is to hold gold and silver bullion on a secure basis for the convenience of investors in the shares of the Central Fund.
Expense Ratio	0.3%
1-Year / 3-year / 5-Year Returns	(9.2%) / 20.2% / 19.1%
Alternatives	SPDR Gold Shares iShares Silver Trust

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 96% of the 746 members who have rated Central Fund of Canada believe the fund will outperform the S&P 500 going forward.

Earlier this summer, one of those Fools, DarthMaul09, succinctly summed up the bull case for our community:

Balanced play between gold and silver. ... [T]his fund has a better reputation for holding the actual bullion, which may become relevant as bullion shortages become more apparent. With Asian gold buying and [Eric Sprott's] upcoming silver purchases I would expect that demand may increase, especially if central banks continue to expand the money supply.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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