Struggling Gold Trust May Still be a Good Buy

GGN is struggling, but has rewarded us in the past while paying a 10%-plus dividend

   
Struggling Gold Trust May Still be a Good Buy

Gabelli Global Gold, Natural Resources & Income Trust (AMEX: GGN) –This non-diversified, closed-end management investment company invests in the equity securities of companies principally engaged in the gold and natural resources industries.

GGN has provided a steady dividend return, as well as a way to participate in major metals mining stocks.

I have chosen GGN as the Trade of the Day six times within the past year, and it has rewarded us with consistently good returns.

However, a break below the 200-day moving average in May has not been reversed, and the August rally, too, has failed.

What is going on with GGN?

The dividend is still $1.68 and is paid monthly, and that provides an annualized dividend yield of over 10%.

But the pattern is not good, so only buy GGN on a pullback to just over $15. And if it fails to hold $15, sell it.

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If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.

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Article printed from InvestorPlace Media, http://investorplace.com/2010/08/stock-picks-gabelli-global-gold-natural-resources-income-trust-ggn-2/.

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