{"id":37441,"date":"2013-04-10T12:25:26","date_gmt":"2013-04-10T16:25:26","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=37441"},"modified":"2013-04-10T12:25:26","modified_gmt":"2013-04-10T16:25:26","slug":"this-golden-income-secret-is-currently-paying-12-per-year","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/04\/10\/this-golden-income-secret-is-currently-paying-12-per-year\/","title":{"rendered":"This “Golden Income” Secret Is Currently Paying 12% per Year"},"content":{"rendered":"

By Jim Nelson<\/strong><\/p>\n

I am not going to try to tell you why you should own some gold…<\/p>\n

You either understand why gold should be part of a well-diversified portfolio… or you don’t.<\/p>\n

You either see that the world’s most powerful central banks are all
\ndeliberately debasing fiat currencies to stimulate “growth”… or you
\ndon’t.<\/p>\n

Gold prices have been getting clobbered recently. That’s bad news if
\nyou are a short-term investor. But it’s good news if you have a
\nlonger-term view. That’s because, if you understand the effects
\nconcerted central bank money printing will have on the values of fiat
\ncurrencies, the recent correction in prices is a great opportunity to buy gold on the dips<\/strong><\/a>.<\/p>\n

But I don’t recommend you rush out and buy gold bars… or even gold-backed ETFs.<\/p>\n

Sure, those are great ways to track the price of gold. But I never make a recommendation to buy anything unless I know that investment will pay over time. I look for income<\/strong><\/a>.<\/strong><\/p>\n

That’s why I recommend you get exposure to the gold market… and pick up some solid income… by buying shares in Gamco Global Gold, Natural Resources & Income Trust (NYSE:GGN<\/a>)<\/strong>.<\/p>\n

Gamco is a closed-end fund that holds positions in 48 different gold
\nmining companies and 37 energy companies. And it has been paying out a
\n10%-plus dividend yield for the last eight years.<\/p>\n

Today, it pays a 12% annual dividend yield. Better still, it pays out
\nmonthly. So you can grab a healthy 1% per month if you buy now.
\n(Compare that to the measly returns on your CD or bond market.)<\/p>\n

The “golden income” Gamco pays out to shareholders comes from an
\nunusual source: the premiums the company collects from writing covered
\ncalls on the stocks it owns in its portfolio.<\/p>\n

A covered call is an options strategy in which an investor writes
\n(sells) call options on a long position he holds a position in to
\ngenerate increased income from the asset.<\/p>\n

When you write a call and sell it, the buyer pays you a “premium”
\nupfront.
\nGamco keeps this premium no matter what happens. And because this is a
\ncovered call options strategy, if the shares Gamco writes covered calls
\non rise sharply, Gamco is forced to sell them… but at a profit.<\/p>\n

Gamco sells a bit of upside, in other words, in exchange for a lot of safety in the form of its options premiums.<\/p>\n

This “golden income”<\/strong><\/a> stream is perfect for today’s environment.<\/p>\n

You see, there’s no limit to how many times Gamco can write covered
\ncalls on the stocks it owns. And since shares aren’t jumping right now,
\nthe company is able to continue to write one contract after another
\nwithout seeing its shares called away.<\/p>\n

And guess who benefits from the “golden income”? You<\/em>. Gamco passes all that income onto shareholders.<\/p>\n

So don’t worry about short-term movements in the gold market.
\nInstead, seize the opportunity and start picking up “golden income” of
\n12% per year.<\/p>\n

I recommend you get in today.<\/p>\n

Sincerely,<\/p>\n

Jim Nelson<\/p>\n

\n
\n

Disclaimer<\/span><\/span><\/span><\/h3>\n
\n

Article brought to you by Inside Investing Daily. Republish
\nwithout charge. Required: Author attribution, links back to original
\ncontent or www.insideinvestingdaily.com<\/a>. Any investment contains risk. Please see our disclaimer<\/a>.<\/em><\/p>\n

 <\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Jim Nelson I am not going to try to tell you why you should own some gold… You either understand why gold should be part of a well-diversified portfolio… or you don’t. You either see that the world’s most powerful central banks are all deliberately debasing fiat currencies to stimulate “growth”… or you don’t. … <\/p>\n

Continue reading “This “Golden Income” Secret Is Currently Paying 12% per Year”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-37441","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=37441"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/37441\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=37441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=37441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=37441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}