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CEF and GGN Discussed in Article: What's Wrong With Gold Stocks?

beebee
edited April 2012 in Fund Discussions
From the article:

CEF:

"Central Fund of Canada (CEF). This fund invests in gold and silver bullion about equally. It sells at about a 4% premium to the value of the bars in its warehouse. I actually think this is going to appreciate slower than the stocks, but for diversification it makes some sense for me. After all, if the gloom-and-doom predictors are actually right about the US, it may be useful to have a little gold and silver tucked away outside of the country."

GGN:

"Gabelli Global Gold, Natural Resource & Income Trust (GGN). This is a closed-end fund that invests in the worlds largest gold and energy companies. The fund pays about a 10% annual dividend in monthly installments. This income is derived from dividends on holdings and selling options on them...my all-time favorite income strategy."

http://seekingalpha.com/article/411621-what-s-wrong-with-gold-stocks-my-3-theories?source=yahoo

Comments

  • scott
    Not much of a fan of the option income CEFs, but otherwise, gold stocks are certainly one of the biggest examples in ages of commodity stock not following commodity, and not just one or two examples but across the board.
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