ASA Gold and Precious Metals Ltd. (ASA) has gained 69.4% in 2025, despite a current discount of 11% to its net asset value (NAV). The fund manages over $600 million, with 72.5% of its portfolio in gold, 24.8% in mining stocks, and 2% in silver. The dividend yield stands at a mere 0.2%, significantly lower than the average 8.5% yield for Closed-End Funds (CEFs).
Historically, ASA has maintained an 11% discount to NAV for nearly 25 years and often experiences significant declines post-surge, as seen in early 2016. Despite the recent rise in value, the analysis suggests that investors should navigate carefully and avoid buying unless gold prices have recently fallen, indicating a potential for a future upswing.
Currently, with gold prices plateauing since March, it is considered a sell for short-term traders. Long-term investors should remain cautious as the fund has historically underperformed compared to gold benchmarks.
