Fund with 10% yield is as good as gold
On top of that payout, my price target for GGN could deliver 18% gains in shares.
By Sam Collins, OptionsZone.com.
Despite what the bears say, gold remains very pricey -- and will stay there for a while. The yellow stuff continues to trade at more than $1,100 an ounce even as the U.S. dollar rises and holds back commodity prices.
If you’re looking to play gold, I have a doozy of a mutual fund for you: The Gabelli Global Gold, Natural Resources & Income Trust (GGN). This non-diversified, closed-end management fund invests in the equity securities of companies principally engaged in the gold and natural resources industries.
For starters, this fund yields a mammoth dividend of 10%! And as you’ll see in my technical analysis, shares of GGN themselves have a lot of upside potential as gold stays in high demand. Just check out this chart: showing the technical indicators:
GGN recently held on its support line and 200-day moving average, executing two of our internal Collins-Bollinger Reversal (CBR) buy signals, and broke through its 50-day moving average.
The short-term target is $19, but longer term it could run to the mid $20s. That’s a nice 18% gain above the price of GGN shares as of this writing!
If you’re looking to play gold, the Gabelli Global Gold, Natural Resources & Income Trust is a no-brainer.
For my daily stock picks based on technical analysis, check out my "Trade of the Day" posted every morning before the bell on OptionsZone.com.
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Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
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