Gold looks to have turned the corner and higher prices are directly ahead. And for good reason: Fueling the bid in gold is a voracious demand for safety caused by geopolitical uncertainty. This includes concern surrounding the Trump Administration and upcoming Italian and German elections.
Then there’s geopolitical risks emanating from North Korea, Russia, the Middle East and Europe. This is right in line with intensifying war cycles that are not expected to peak until 2020.
And I see more supportive influences worthy of driving gold prices higher, including …
- Surging government and private sector debt.
- Diminishing role of U.S. dollar as world’s reserve currency.
- Growing threat of U.S. falling into economic recession.
For these reasons, I recommend increasing your stake in GAMCO Global Gold Natural Resources & Income Trust (GGN).
GGN continues to trade strong and is now flirting with levels prior to the U.S. presidential election — in line with the gold market. Additionally, GGN is currently throwing off a generous 10.5% yield.
Here’s what I recommend:
Using 5% of the funds you have allocated to the Income Investments section, buy GAMCO Global Gold Natural Resources & Income Trust, symbol GGN, at the market. When filled, place a good-till-canceled protective sell-stop at $4.21.
Also,
Cancel your existing good-till-canceled order using 3% of the funds you have allocated to the Income Investments section to buy shares of Royal Gold, Inc., symbol RGLD at $63.10.
In the meantime …
Your position in Goldman Sachs MLP Energy Renaissance Fund (GER) came under pressure with the post-OPEC meeting sell-off in the oil market. But that decline is partially offset with a higher yield on GER, which at the time of writing stands at 8.95%.
And further downside in the position should be short-lived. This comes as energy-based MLP managers see a growth outlook ahead in the wake of greater drilling efficiency and increased production. And this increased production is expected to bolster cash flow growth for midstream MLP’s like GER.
Continue to hold. I may come out with a recommendation to purchase more GER shares on further weakness. Stay tuned.
Finally, your position in Westlake Chemical Partners LP (WLKP) is showing nice open gains while also sporting a healthy yield of 5.7%. Continue to hold.
