Core Viewpoint - The ASA Gold & Precious Metals Fund (ASA) has significantly outperformed other closed-end funds (CEFs) in 2025, with a remarkable increase of 172%, primarily due to the rising gold prices. However, it is not recommended as a buy due to its low yield and historical underperformance compared to both the S&P 500 and gold prices [4][5][6]. Performance Analysis - ASA's performance in 2025 is exceptional, but it is an outlier as no other CEF subsector has exceeded a 15% increase [4]. - Over the last two decades, ASA has underperformed the S&P 500 on a total-NAV-return basis, indicating that its portfolio performance has lagged behind broader market indices [5]. - Investors who purchased ASA 20 years ago would have faced significant losses during certain periods, particularly in the 2010s, highlighting its volatility and risk [6]. Income Generation - ASA yields only 0.1%, which is substantially lower than the average yield of over 8.3% for other CEFs, making it unattractive for income-focused investors [4][7]. - In contrast, other CEFs, such as the PIMCO Corporate & Income Opportunity Fund (PTY), offer higher yields and have maintained strong dividends since inception [9]. Alternative Investment Options - Several high-yield stock CEFs, including the Adams Diversified Equity Fund (ADX) and Liberty All-Star Equity Fund (USA), have outperformed ASA in terms of long-term returns and income generation [8][10]. - These alternative funds provide a "mini-portfolio" yielding an average of 10%, significantly higher than ASA's yield, and have shown better historical performance [10]. Investor Caution - The current success of ASA may lead to a recency bias among investors, potentially resulting in poor long-term investment decisions if historical performance is ignored [11][12]. - Investors should be wary of the lack of income from ASA while waiting for potential future gains, as its long-term trend suggests a likelihood of underperformance [12].

Core Insights - Commodities investors have experienced significant profits in 2025, particularly in gold and silver, with gold rising approximately 56% over the past year and 60% year-to-date, while silver has increased by 62.6% over the past year and 78.4% year-to-date [1] Group 1: Recent Trends - Both gold and silver have recently seen a decline, with gold losing 2% and silver down 5% over the past week, and further declines of 6% for GLD and 7.9% for SLV on a specific Tuesday [2] - The recent downturn in gold and silver prices is attributed to an overcrowded trade and a market that was running hot, leading to a natural reversal [3] Group 2: Market Dynamics - Profit-taking is likely contributing to the pullback in gold and silver prices, although the long-term fundamentals remain supportive [4] - A significant factor in the price reversal is the increase in margin requirements on the Shanghai Exchange, which triggered a sell-off that affected global markets [5] - The tightness in physical supply, particularly for silver, is also influencing market confidence, with potential for a sell-off as weaker hands exit the market [6]