| Precious metal mutual funds are relatively new | | | | American financial system, these funds become |
| instrument that allow people to invest in the | | | | more and more popular. |
| commodity markets without going through the | | | | There are currently three precious metal funds |
| complicated commodity process. They are less | | | | that shine above the rest. They are all proven |
| risky and less volatile than conventional | | | | performers, are stable and have shown good |
| commodity markets since they are invested in a | | | | returns. |
| wider range of holdings and thus can better | | | | Two of the funds have been around a long time, |
| weather market fluctuations. | | | | as it applies to precious metals. The Fidelity |
| These funds can either invest in a single metal | | | | Select Gold Portfolio and the Riversource Precious |
| such as gold or platinum or can have holdings in a | | | | Metal and Mining A both place the majority of |
| variety of metals. The funds often not only | | | | their holdings in gold and gold related industry. |
| invest in the metals themselves, but also in | | | | Both of these funds have a very low expense |
| companies that deal in the metals such as mining | | | | ratio and are well diversified. |
| companies. Just like other mutual funds, some | | | | The Van Eck International Investor's Gold fund is |
| precious metal funds invest in more volatile, fast | | | | newer with an inception of 1998. This fund also |
| money options while others focus more on long | | | | focuses on gold and has invested heavily in mining |
| term growth. Even with long term, well | | | | ventures. At times, 100% of the fund is |
| diversified funds, due to the volatility of metal | | | | invested in mining companies. It has a slightly |
| commodities, these funds are considered among | | | | higher expense ratio than the other two at |
| the riskiest of mutual funds. | | | | 1.44%, but this is still considered excellent. |
| These funds have recently become more popular | | | | As the market continues to tank and U.S. |
| as people seek a hedge against market volatility. | | | | government debt rises, people are flocking to |
| Gold, silver and platinum have historically | | | | precious metal investments. Gold has always |
| outperformed the market and often see their | | | | been a standard of wealth, hence the term "gold |
| best gains when the market tanks. Many | | | | standard" and it likely always will hold that title. |
| investors use such investment as a hedge against | | | | PM funds are a good way for a casual investor to |
| inflation. As people lose confidence in the | | | | take advantage of metal's stability. |