I found the following in CEF's annual report interesting as it clearly outlines what you are buying when you buy this type of Canadian Trust (which trades in the US). For those of you who want to have some physical in addition to mining/exploration stocks, this may be worth a look see. Caveat: I do own some ...you should always check out the premiums to net asset values to make sure you are not overpaying

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The investment policy set by the Board of Directors requires Central Fund to
maintain a minimum of 90% of its net assets in gold and silver bullion of which at
least 85% must be in physical form. On October 31, 2011, 98.8% of Central Fund's
net assets were held in gold and silver bullion. Of this bullion, 99.6% was in
physical form and 0.4% was in certificate form.

Central Fund's physical gold and silver bullion holdings may not be loaned,
subjected to options or otherwise encumbered in any way.
Safeguards Central Fund’s bullion is stored on an allocated and fully segregated basis in the
underground vaults of the Canadian Imperial Bank of Commerce (the “Bank”), one
of the major Canadian banks.