Best Precious Metals Mutual Funds

 

A precious metal mutual fund is a fund that invests exclusively in one precious metal or another. Some funds invest in a range of metals with other stick to one metal or the other. These investments may be in tangible metal or they may include stock in mining companies. Some stocks seek long term appreciation of assets while others chase after quicker, faster money. Because of the volatility of any precious metal, precious metal mutual funds are among the riskiest of all funds.

Gold, silver, platinum and precious stones have historically been safe investment harbors for investors. Metals funds allow investors to diversify portfolios, use professional management to oversee the day to day operations of the fund, are liquid, and have a usually much lower initial investment amount then individual stocks offer.

Three PM funds have shown themselves recently to be very good, very stable (when compared to the rest of the field) and good returnees.

Van Eck International Investors Gold has had Joseph M. foster as the lead manager since 1998 and he has done a remarkable job. Van Eck seeks long-term capital appreciation by sinking investments in common stocks of gold mining companies. Usually at least 80% of the funds total assets are in gold mining stocks and sometimes up to 100%. The fund pays dividends four times a year and capital gains once a year. Van Eck has an expense ratio of 1.44%

Fidelity Select Gold Portfolio was incepted in 1985 and also seeks capitol appreciation. Another fund that invests the majority of its stock in companies engaged in gold related activities, it doesn’t restrict its investments to gold mining companies. Fidelity also buys gold and coins. The fund manager also invests in other precious metals and the securities of companies that manufacture precious metal and minerals products. Fidelity requires a minimum investment of $2,500 and has an expense ratio of.89%, which is very low.

RiverSource Precious Metal & Mining A opened its doors in 1985 and hasn’t looked back. Another fund seeking long-term growth of capital, RiverSource primarily looks for securities of companies engaging in the exploration, mining, processing, or distributing of gold and other precious metals. RiverSource doesn’t limit itself to only precious metals but engages at least 50% of its assets in foreign securities.

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