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Alternative Gold Investment Could Yield 40%-Plus Total Return

GGN appears headed to $14-$15 and pays a monthly cash distribution


GAMCO Global Gold, Natural Resources & Income Trust (GGN) — Managed by Gabelli Funds, this closed-end fund invests primarily in equity securities of gold and natural resources companies. It generates income primarily through a covered call strategy, providing steady dividends.

While it will not participate fully in the appreciation of mining stocks when precious metals advance due to its options writing strategy, it provides a much higher level of income and offsets the risk of owning the stocks outright. With a monthly cash distribution of $0.09, the fund currently yields 9.8%.

Since breaking its bearish resistance line in February, GGN found support at its 50-day moving average, now at $10.50. It executed a golden cross in April and successfully tested its 50-day in June. MACD is bullish and GGN is under accumulation. The intermediate price objective is $14 to $15, which it could be achieved by December.

GGN Chart
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