Gold is not the only thing in GGN's portfolio, 50.95% of its investments is in gold related companies while an additonal 49.05% is in energy. So IMO its a good bet that mananmgent will be able to maintain the $0.12 monthly dividend past the September '13 it has already announced that it will disberce
The top holdings in GGN are gold miners. The price of gold will disrupt their profitability. Some people are speculating gold will fall much lower, I do not know.
But I am looking for gold to come down to the 1250 range and I’m also waiting for the gold miners to report before jumping in GGN again. I’m going to guess they do ok but their guidance going forward wont be so great.
I’m still on the fence, but like I said, if you buy some shares of GGN here and there and hold them for awhile just collect the distribution and hold on until the gold miners/gold come back.
I haven’t read something or heard anyone say gold will not eventually come back but the real question is how low gold will go.
I agree with you. I just purchased more stocks today. I was buying this happily at level 12$ so this feels cheap now :-). This sell-off of all commodity, especially gold, related stocks has gone over in my opinion. Sure it can go down more, but who cares. They might also cut the dividend to half. So what, I am holding as long as this CEF exists. I am quite sure I will get my money back with average price of 10,70$ now.
Yes, I also cost-averaged down because I like the mix of holdings of this CEF. I think there is a lot more upside potential than downside. After all,natural resources and energy will always be needed/used - it is simply the demand and supply that fluctuate and determine share price. The best time to buy is when there is fear, and that time is now, imo. :-)
In fact, I also got me some shares of GNT, a cousin of GGN.