Precious Metals and Mining Trust T.MMP.UN

RE: RE: RE: MMP.UN vs. PME

[bjbear]

Your comment about the 12 month dividend commitment for MMP.UN could be a good reason for buying it if you really need the dividend. However the dividend is really a return of capital not a true dispursal of dividends from the stock holdings as virtually none of the individual gold stocks pay a dividend.

Usually holders of precious metals funds are after capital appreciation not big dividends. Anyway in this comparison PME payout is around 10% versus 12% for MMP.UN. I wasn't aware of the 12 month committment for MMP.UN dividends but not really a selling point for a lot of investors like myself.

Does it matter if one gets more dividends and less capital appreciation or vice versa? Not really in this situation unless you really need these dividends and a long range commitment. With less dividends one could always sell some shares of say PME to compensate for the slightly less dividends. I realize this can be a bit of a nuisance. In any case most closed end funds track their NAV over the long run so I would rather buy  a fund like PME at a big discount when I can.