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ASA Gold fund looks cheap but faces flat gold prices and management issues, making it a risky investment.

Market News
23 Jun 2026
Forbes
View Source
Bearish
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ASA Gold & Precious Metals Limited, a closed-end fund invested mainly in physical gold, was the top-performing fund in 2025 due to a gold price surge. However, in 2026, gold prices and ASA's returns have been flat despite global uncertainties, indicating the market had already priced in risks. The fund trades at a 13.9% discount to its net asset value, near its five-year average, so it is not a bargain. Additionally, internal management conflicts, including the COO's resignation over governance concerns, may widen this discount and hurt the fund's market price. Investors are advised to avoid ASA due to stagnant gold prices and governance issues.

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