Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I don't have any gold related investments. I'm thinking that gold stocks and gold income funds would be good to watch now. GGN is currently yielding 16% at $9.00 and .12/month
Dear Dex: I suggest you take a second look at this fund. Look at the yields for Jan./Feb./Mar. of 2014. I wouldn't touch this fund with a ten foot pole. High expenses and very little return. Regards, Ted
dear sir probably should ask rono, but we do have GLD and PRPFX permanent portfolio in our holdings [these vehicles took ok a major hit recently but should consider adding at this present time > 30s% down] regards
"A fund's distributions may contain a return of capital, which should not be counted as the 'yield'. ... Investors, ever eager for income, rely on sources which fail to use the correct 'D' word: that is, incorrectly labeling a cash payment to shareholders as a dividend when it is in fact a distribution."
From the fund's latest PR on its distributions: "The Board of Trustees ... declared monthly cash distributions of $0.09 per share for each of January, February, and March 2014. ... The distribution rate should not be considered the dividend yield or total return on an investment in the Fund."
In short, that 16% "yield" (which is about to become 12%) is largely a return of your own principal. The true yield is much lower. You can't get "income" from gold. You can only get it from companies (e.g. mining companies) that make profits and distribute (some of) those profits as dividends.
The page you linked to shows that about half the current 12c/share distribution is return of principal. You can see a similar pattern in other managed distribution funds here.
I haven't bought a Gabelli fund since Couch Potato. I think there are other ways to cover this square.
Most gold mutual funds consist of gold mining stocks. You're better to buy a precious metals fund that also invests in silver and platinum. I also happen to like pm funds that own a wee bit of actual bullion. That leads us to Toqueville TGLDX which I have owned Taxable for over ten years. I do NOT care for the bullion ETFs like GLD but for bullion prefer Central Fund of Canada CEF.
If you want some sort of dividend return you need to stick with the major miners and that would point towards the larger pm funds. That said, they normally do not focus at all on dividends in this square so . . . .
I'm a long time believer that everyone should own some gold/silver as part of their wealth, say 5-10%. More than that is speculation. The bull market in pm's has been running since 2002/3 but had stalled into recently. Now it seems to be moving again. During the first decade the mining stocks lagged the bullion prices by a LOT. Normally, the miners and bullion track each other but at any time on can lag the other. Right now it seems as if the miners are trying to recapture some sort of equilibrium and make up for lost ground.
For example, right now I've got a momentum play on with some silver mining penny stocks. I also bought PAAS a few months back because it pays a dividend. I own PRPFX, TLGDX, SLW, SIL, CEF, PAAS, MGN, ASM, SLTOF, HUSIF but these last 4 are purely nosebleed stuff that I would NOT recommend.
I would recommend TGLDX first while taking a look at VGPMX. Also Scott had a good idea with FCX. I own BHP for the same reasons.
If you're looking for dividend yield, start with your own utility companies. Mine are paying over 4% and it softens the monthly pain.
Comments
Regards,
Ted
CEF Connect Snapshot Of GNN:
http://www.cefconnect.com/Details/SummaryPrint.aspx?Ticker=GGN
probably should ask rono, but we do have GLD and PRPFX permanent portfolio in our holdings [these vehicles took ok a major hit recently but should consider adding at this present time > 30s% down]
regards
"A fund's distributions may contain a return of capital, which should not be counted as the 'yield'. ... Investors, ever eager for income, rely on sources which fail to use the correct 'D' word: that is, incorrectly labeling a cash payment to shareholders as a dividend when it is in fact a distribution."
From the fund's latest PR on its distributions: "The Board of Trustees ... declared monthly cash distributions of $0.09 per share for each of January, February, and March 2014. ... The distribution rate should not be considered the dividend yield or total return on an investment in the Fund."
In short, that 16% "yield" (which is about to become 12%) is largely a return of your own principal. The true yield is much lower. You can't get "income" from gold. You can only get it from companies (e.g. mining companies) that make profits and distribute (some of) those profits as dividends.
The page you linked to shows that about half the current 12c/share distribution is return of principal. You can see a similar pattern in other managed distribution funds here.
Thank you for that info/education/link.
I'd say Freeport Copper/Gold (FCX) (although that's not all gold) is an option with yield. As for GGN's yield, see what MSF said.
There are a LOT of Canadian resource stocks that pay divs.
Article, as well:
http://seekingalpha.com/article/944711-5-of-the-highest-yielding-gold-stocks
I haven't bought a Gabelli fund since Couch Potato. I think there are other ways to cover this square.
Most gold mutual funds consist of gold mining stocks. You're better to buy a precious metals fund that also invests in silver and platinum. I also happen to like pm funds that own a wee bit of actual bullion. That leads us to Toqueville TGLDX which I have owned Taxable for over ten years. I do NOT care for the bullion ETFs like GLD but for bullion prefer Central Fund of Canada CEF.
If you want some sort of dividend return you need to stick with the major miners and that would point towards the larger pm funds. That said, they normally do not focus at all on dividends in this square so . . . .
I'm a long time believer that everyone should own some gold/silver as part of their wealth, say 5-10%. More than that is speculation. The bull market in pm's has been running since 2002/3 but had stalled into recently. Now it seems to be moving again. During the first decade the mining stocks lagged the bullion prices by a LOT. Normally, the miners and bullion track each other but at any time on can lag the other. Right now it seems as if the miners are trying to recapture some sort of equilibrium and make up for lost ground.
For example, right now I've got a momentum play on with some silver mining penny stocks. I also bought PAAS a few months back because it pays a dividend. I own PRPFX, TLGDX, SLW, SIL, CEF, PAAS, MGN, ASM, SLTOF, HUSIF but these last 4 are purely nosebleed stuff that I would NOT recommend.
I would recommend TGLDX first while taking a look at VGPMX. Also Scott had a good idea with FCX. I own BHP for the same reasons.
If you're looking for dividend yield, start with your own utility companies. Mine are paying over 4% and it softens the monthly pain.
good luck,
peace,
rono