Monthly Income for Precious Metals (GGN)

advalorem

One can own SLV, GLD and sell covered calls against their positions for a monthly income stream.

On weakness, I do buy "Gabelli Global Gold, Nat Resource & Income (GGN)". It's a closed-end-fund (CEF) selling at a
premium to net asset value (NAV). Preferably, CEF's should be bought at a discount to NAV. Central Fund of Canada
(not to confuse the acronym for people new to this topic, but Central Fund of Canada's trading symbol is CEF) traded
at a discount to NAV for quite some time.

The stock pays a 12.79% annualized dividend via monthly payments, currently 14-cents a share. The fund will sell covered calls
to derive income to pay out the distribution.

Here is a daily link to the price, and discount/premium to NAV at etfconnect:
Gabelli Global Gold, Nat Resources CEF for Monthly Income

Top Holdings As of 12/31/2008
Kinross Gold Corp
Agnico-Eagle Mines
Gold Fields Ltd.
Newcrest Mining Ltd
Newmont Mining Corp
Lihir Gold Ltd.
Barrick Gold Corp
Goldcorp Inc
Yamana Gold Inc
Devon Energy Corp

roadrunner

I was into one of the major gold mutual funds a few years back and found that for all the "diversity" if offered, it just may have been too well diversified to be able to take full advantage of the market. It had literally a hundred positions if not more. I found that the gains on the way up sort of fell short of Gdx/HUI/XAU/GDM but on the way down got hammered just as much, if not more. At least that was my exerience.

My own preferences today would be a fund (if it existed) with 10-12 top miners all about equally split up in the 8-12% range (such as AEM, GG, ABX, KGC, BVN, NEM, AUY, EGO, IAG, SLW, SSRI). The indicies are currently 40-50% weighted towards the biggest 3 miners, while even GDX has about a 30% weighting. I think that's too much for ABX, GG, and NEM at the expense of leaving some of the intermediates underweighted.

roadrunner

advalorem

Roadrunner,

I agree with you 100%. I bring up the idea of GGN as a means of a monthly income stream. It's focus is to give the individual income vs. capital appreciation that a regular open-ended mutual fund offers.

Receiving 14-cents (which, sure, is subject to change) per-share per-dividend each month is kind of nice.

I appreciate and respect your views. I likely wasn't clear on why I like GGN. I own physical and common stock of miners for the capital appreciation. I own a GGN for income.