CEF could be subject to confiscation by the Canadian government. This, however, is very unlikely. The Canadian government is not in the same position as the U.S. government. Given the amount of gold exploration and of Canadian based gold miners/drillers, confiscating gold would be an increibly unpopular move. hy kill one of your few cash cows?
And you are quite right. How can CEF be called an ETF when the gold and silver is literally bought, appraised, stored in vaults, and independently audited? We're not talking about paper gold and silver here.
You're also right aout the premium and dilution. Short term, the stock price comes down to around book value. But the cost of running the business goes down with the larger assets. And the new gold and silver will be worth what they bought it for. Your only concern is the long term value of the precious metals, not "dilution."
It's not the first time JP's said something that's just plain wrong.