FYI: Here’s something that might surprise you about gold: closed-end fund (CEF) managers—at least those I speak to—pay little attention to it.
We’ll dive into why right now. Then I’ll show you three gold CEFs you need to keep away from your portfolio. Because gold’s future looks nothing like the rosy past gold bugs love to use to justify their lust for the yellow metal.
So why do most CEF chiefs (not to mention celebrated investors like Warren Buffett) shun gold?
The short answer is that gold doesn’t produce anything. So when you buy it, you’re speculating that someone will buy it from you for a higher price in the future. This is different from a house, say, which you could rent out, or a company, which produces goods and services—and therefore revenue and (hopefully) profits.
“But,” the gold bugs always counter, “someone will buy gold at a higher price.”
Regards,
Ted
https://www.forbes.com/sites/michaelfoster/2019/03/06/these-3-gold-funds-have-slashed-dividends-and-it-will-get-worse/?ss=etfs-mutualfunds#49b733df2177
