ASA Gold Fund's Near 200% Return in 2025 May Signal 2026's Biggest Loser
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
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Source: NASDAQ.COM
- Returns and Risks: The ASA Gold Fund achieved nearly 200% returns in 2025, yet its current yield of just 0.1% indicates that rapid growth in volatile markets often signals a peak rather than sustained growth.
- Market Discount Analysis: Despite ASA trading at a nearly 10% discount to NAV, the market's cautious stance reflects a pessimistic outlook for its 2026 performance, potentially leading to further price declines.
- Competitive Comparison: ASA outperformed major gold ETFs like GLD and GDX in 2025, but its high exposure to exploration firms increases its risk in fluctuating gold prices, resulting in a lack of market confidence in its future.
- Investment Recommendation: Given the multiple risks facing ASA, investors are advised to consider funds with higher yields, averaging 9.2%, which provide better protection during market pullbacks.
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.
