ASA Gold Fund Faces Significant Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 22 2026
0mins
Source: NASDAQ.COM
- Low Yield: ASA Gold Fund currently offers a meager 0.14% dividend yield, significantly lower than the average 8.9% yield of similar funds, which greatly diminishes its appeal to income-seeking investors and may lead to capital outflows.
- Weak Gold Performance: While gold prices surged in 2025 due to inflation and geopolitical concerns, resulting in strong fund performance, the flat gold prices in 2026 have led to a mere 3% total return for ASA, indicating weakened market demand and investor confidence.
- Discount Phenomenon: ASA's current discount to net asset value stands at 13.9%, which, although appearing attractive, aligns with its five-year average, suggesting a lack of optimism regarding future performance and potential for further price declines.
- Management Turmoil: The resignation of COO Axel Merk on June 11, who raised concerns about governance, may erode market trust in the fund, exacerbating the discount phenomenon, thus investors should approach this fund with caution.
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Analyst Views on ASA
About ASA
ASA Gold and Precious Metals Limited is a non-diversified, closed-end investment company. The Company's investment objective is long-term capital appreciation primarily through investing in companies engaged in the exploration for, development of projects or mining of precious metals and minerals. The Company invests approximately 80% of its total assets in common shares or securities convertible into common shares of companies engaged, directly or indirectly, in the exploration, mining or processing of gold, silver, platinum, diamonds or other precious minerals; held as bullion or other direct forms of gold, silver, platinum or other precious minerals; in instruments representing interests in gold, silver, platinum or other precious minerals, and/or in securities of investment companies, including exchange traded funds, or other securities. The Company’s investment adviser is Merk Investments LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ASA Board Management Change Raises Shareholder Concerns
- Board Management Change: ASA's Board terminated Merk Investments LLC as the investment adviser and shifted management to an internal investment committee controlled by Saba, leading to significant shareholder dissatisfaction due to the committee's lack of mining experience.
- Shareholder Opposition: Axel Merk, holding over 300,000 shares (1.7%), reported that shareholders are furious with the Board's decision, believing that Saba's interests are misaligned with those of ASA shareholders, and that the Board's actions do not reflect shareholder sentiment.
- Performance Risk: Under Merk's management, ASA achieved a total return of 533% since April 2019, but the recent Board changes pose a fundamental risk to this performance, potentially harming shareholder interests.
- Need for Regulatory Scrutiny: Merk has called for the SEC to investigate the Board's actions, asserting that shareholders were not given a meaningful opportunity to influence the Fund's direction, raising serious governance and compliance concerns.
See More
ASA Gold Fund Faces Significant Challenges
- Low Yield: ASA Gold Fund currently offers a meager 0.14% dividend yield, significantly lower than the average 8.9% yield of similar funds, which greatly diminishes its appeal to income-seeking investors and may lead to capital outflows.
- Weak Gold Performance: While gold prices surged in 2025 due to inflation and geopolitical concerns, resulting in strong fund performance, the flat gold prices in 2026 have led to a mere 3% total return for ASA, indicating weakened market demand and investor confidence.
- Discount Phenomenon: ASA's current discount to net asset value stands at 13.9%, which, although appearing attractive, aligns with its five-year average, suggesting a lack of optimism regarding future performance and potential for further price declines.
- Management Turmoil: The resignation of COO Axel Merk on June 11, who raised concerns about governance, may erode market trust in the fund, exacerbating the discount phenomenon, thus investors should approach this fund with caution.
See More
Almitas Capital Increases ASA Holdings
- Increased Holdings: Almitas Capital purchased an additional 143,527 shares of ASA in Q1 2026, with an estimated transaction value of $9.69 million, reflecting a strong bullish outlook on the precious metals market.
- Rising Position Value: The quarter-end value of ASA's holdings increased by $9.80 million to $32.61 million, demonstrating the dual impact of trading activity and share price movements.
- Investment Strategy: Over 93% of ASA's net assets are invested in mining stocks, indicating Almitas Capital's preference for leveraging mining companies to gain exposure to rising precious metals rather than investing directly in gold.
- Repurchase Program: The ASA board has reauthorized a share repurchase program allowing for the buyback of up to 5% of outstanding shares through April 2027, aimed at enhancing shareholder returns while capitalizing on market discounts.
See More
Almitas Capital Increases Stake in ASA Gold
- Share Increase: Almitas Capital disclosed a purchase of 143,527 additional shares of ASA Gold and Precious Metals Limited in Q1 2026, valued at approximately $9.69 million, indicating strong confidence in the precious metals market.
- Increased Ownership: Following this acquisition, ASA's shares now represent 7.37% of Almitas Capital's assets under management, highlighting its significance in the precious metals investment portfolio and enhancing its market position.
- Outstanding Stock Performance: As of last Friday, ASA shares were priced at $59.54, reflecting a nearly 100% increase over the past year, significantly outperforming the S&P 500's 28% rise, suggesting optimistic market expectations for future growth.
- Supportive Buyback Plan: The ASA board reauthorized a share repurchase program in April, allowing for the buyback of up to 5% of outstanding shares when trading at a meaningful discount to net asset value, aimed at enhancing shareholder returns and boosting investor confidence.
See More
Insider at ASA Gold and Precious Metals Ltd (ASA.US) Plans to Sell $20.73 Million in Common Stock via Form 144
Stock Sale Announcement: Alexander Merk intends to sell 303,810 shares of ASA Gold and Precious Metals Ltd. on April 20, with a total market value of approximately $20.73 million.
Reduction in Shareholding: Merk has reduced his shareholding in ASA Gold and Precious Metals Ltd. by 13,355 shares since February 19, 2026, with a total value of around $942.86K.
See More
ASA GROWS PRIVATE BANKING SERVICES IN THE US AND LATIN AMERICA, NAMES NEW SENIOR LEADERSHIP
Expansion of Private Banking: A major financial institution is expanding its private banking operations across the USA and Latin America.
Leadership Appointments: The expansion includes the appointment of senior leadership to enhance service and operations in these regions.
See More
ASA Board Management Change Raises Shareholder Concerns
- Board Management Change: ASA's Board terminated Merk Investments LLC as the investment adviser and shifted management to an internal investment committee controlled by Saba, leading to significant shareholder dissatisfaction due to the committee's lack of mining experience.
- Shareholder Opposition: Axel Merk, holding over 300,000 shares (1.7%), reported that shareholders are furious with the Board's decision, believing that Saba's interests are misaligned with those of ASA shareholders, and that the Board's actions do not reflect shareholder sentiment.
- Performance Risk: Under Merk's management, ASA achieved a total return of 533% since April 2019, but the recent Board changes pose a fundamental risk to this performance, potentially harming shareholder interests.
- Need for Regulatory Scrutiny: Merk has called for the SEC to investigate the Board's actions, asserting that shareholders were not given a meaningful opportunity to influence the Fund's direction, raising serious governance and compliance concerns.
See More
ASA Gold Fund Faces Significant Challenges
- Low Yield: ASA Gold Fund currently offers a meager 0.14% dividend yield, significantly lower than the average 8.9% yield of similar funds, which greatly diminishes its appeal to income-seeking investors and may lead to capital outflows.
- Weak Gold Performance: While gold prices surged in 2025 due to inflation and geopolitical concerns, resulting in strong fund performance, the flat gold prices in 2026 have led to a mere 3% total return for ASA, indicating weakened market demand and investor confidence.
- Discount Phenomenon: ASA's current discount to net asset value stands at 13.9%, which, although appearing attractive, aligns with its five-year average, suggesting a lack of optimism regarding future performance and potential for further price declines.
- Management Turmoil: The resignation of COO Axel Merk on June 11, who raised concerns about governance, may erode market trust in the fund, exacerbating the discount phenomenon, thus investors should approach this fund with caution.
See More
Almitas Capital Increases ASA Holdings
- Increased Holdings: Almitas Capital purchased an additional 143,527 shares of ASA in Q1 2026, with an estimated transaction value of $9.69 million, reflecting a strong bullish outlook on the precious metals market.
- Rising Position Value: The quarter-end value of ASA's holdings increased by $9.80 million to $32.61 million, demonstrating the dual impact of trading activity and share price movements.
- Investment Strategy: Over 93% of ASA's net assets are invested in mining stocks, indicating Almitas Capital's preference for leveraging mining companies to gain exposure to rising precious metals rather than investing directly in gold.
- Repurchase Program: The ASA board has reauthorized a share repurchase program allowing for the buyback of up to 5% of outstanding shares through April 2027, aimed at enhancing shareholder returns while capitalizing on market discounts.
See More
Almitas Capital Increases Stake in ASA Gold
- Share Increase: Almitas Capital disclosed a purchase of 143,527 additional shares of ASA Gold and Precious Metals Limited in Q1 2026, valued at approximately $9.69 million, indicating strong confidence in the precious metals market.
- Increased Ownership: Following this acquisition, ASA's shares now represent 7.37% of Almitas Capital's assets under management, highlighting its significance in the precious metals investment portfolio and enhancing its market position.
- Outstanding Stock Performance: As of last Friday, ASA shares were priced at $59.54, reflecting a nearly 100% increase over the past year, significantly outperforming the S&P 500's 28% rise, suggesting optimistic market expectations for future growth.
- Supportive Buyback Plan: The ASA board reauthorized a share repurchase program in April, allowing for the buyback of up to 5% of outstanding shares when trading at a meaningful discount to net asset value, aimed at enhancing shareholder returns and boosting investor confidence.
See More
Insider at ASA Gold and Precious Metals Ltd (ASA.US) Plans to Sell $20.73 Million in Common Stock via Form 144
Stock Sale Announcement: Alexander Merk intends to sell 303,810 shares of ASA Gold and Precious Metals Ltd. on April 20, with a total market value of approximately $20.73 million.
Reduction in Shareholding: Merk has reduced his shareholding in ASA Gold and Precious Metals Ltd. by 13,355 shares since February 19, 2026, with a total value of around $942.86K.
See More
ASA GROWS PRIVATE BANKING SERVICES IN THE US AND LATIN AMERICA, NAMES NEW SENIOR LEADERSHIP
Expansion of Private Banking: A major financial institution is expanding its private banking operations across the USA and Latin America.
Leadership Appointments: The expansion includes the appointment of senior leadership to enhance service and operations in these regions.
See More
