The piece ranks ASA among the underperforming metal-linked CEFs in 2026, alongside SPPP and PSLV, as precious metals pull back after the 2025 surge. It also notes OXLC’s sharp loss and dividend cuts, underscoring the risk of concentrated metal and CLO-related exposure. For income-focused investors, diversification remains critical to manage metal-cycle risk.
ASA Gold and Precious Metals Ltd. is up 69.4% in 2025. The fund has an 11% discount to net asset value. ASA's dividend yield is notably low at 0.2%. Historically, ASA tends to fall hard after substantial run-ups. Current market conditions suggest it is a sell point for ASA.
ASA Gold is outperforming gold CEFs this year, benefiting from economic uncertainty. Despite a strong 2023, long-term prospects for ASA are questionable. Gold funds yield poorly, with ASA offering only 0.2% income. Historical performance shows ASA has underperformed compared to other gold investments. ETFs are more favorable for long-term gold investing than CEFs.