GGN: Constant NAV Destruction Ruins This Gold-Themed CEF


  • Gold has been a pretty solid asset class to be in this year as uncertainty and fears of inflation have pushed investors into it.
  • The fund invests in gold miners and to a lesser extent energy companies that are located around the world, providing a reasonable amount of diversity.
  • The Federal Reserve's balance sheet ballooned this year and will likely to continue to do so going forward.
  • The fund has underperformed both the gold miners index and the metal itself by quite a lot over the years.
  • While the current discount is appealing, the fund's track record of declining net asset value makes it very much a second drawer choice for an investor.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Get started today »

Gold has been one of the best performing assets ever since the COVID-19 pandemic. There are a few understandable reasons for this, most particularly because gold is generally considered to be a safe haven asset in uncertain times. Thus, many would flee into gold in an attempt to keep their money safe in the early stages of the pandemic when admittedly nobody knew what was going on. In addition, the fact that the Federal Reserve and the various governments around have essentially been printing money in order to finance the giant amounts of stimulus that they were unleashing to support their economies led people to look for alternatives to cash. Unfortunately though, one of the biggest problems with gold is that it does not actually produce any income, thus it may not be especially appealing to income investors or others that need to generate money off of their portfolios rather than simply preserve wealth. Fortunately, there are ways around this such as investing in a gold-focused closed-end fund. In this article, we will take a look at the GAMCO Global Gold, Natural Resources & Income Trust (NYSE:GGN), which is one of the more well-known funds in the space. The fund current boasts a massive 10.23% yield, which will undoubtedly appeal to anyone seeking income.

About The Fund

According to the fund's web page, the GAMCO Global Gold, Natural Resources & Income Trust has the primary objective of generating a high level of current income with a secondary goal of capital appreciation. This may seem unusual to those investors that are used to open-end mutual funds as many of those funds are much more interested in capital appreciation than in income but it is certainly not unusual among the closed-end fund space as many of these funds focus primarily on income. One thing that is somewhat

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