cockerel: I understand your caution. CEF has been around for years and of course it is another form of paper. But there is a huge demand for paper for a number of reasons. CEF is honest and auditable. They have a decades long history of premiums to the underlying physical. As a matter of fact they are down today 1.5% and that represents a good buy in as much as both the metals climb and the premium restores after the underwriting has settled.
All stock is subject to shorting and other types of manipulation. You can't invest in ECU or any other junior miner directly without acquiring some type of paper. Are you invested in ECU? Than you are holding paper along with the associated risks and benefits.
I doubt that even 1% of gold bugs are strictly bullion. I retired early because of carefully purchased paper instruments. It has its benefits. Without paper, there would be next to no exploration, no new miners, and most certainly severe shortages of physical.
So in my opinion, paper is not paper, is not paper. There are differences. CEF is one of those I chose to hold. It held its price better than any other stock in my portfolio during the crash 08.
Cheers!
Jack