Loading...
 

Mutual funds are one of the best ways for individual investors to participate in the market for gold.  While there may be swings in Net Asset Values, they will generally not be as extreme as that of individual securities of gold miners and the like.

Over the long term, the Precious Metals objective group has been an outright terrible performer (especially in recent years) relative to the broader market, as measured by the S&P 500 Index.  For the 10-year period ended January 31, 2014, the group had an annualized return of 4.1%, while the S&P 500 Index reported an annualized gain of 6.8%.  Over the trailing five and three-year periods through September 30, 2013, the group had losses of 1.2% and 20.3%, respectively, while the Index reported annualized gains of 19.2% and 13.9% respectively.  During the past year, the Precious Metals objective group reported a loss of 34.4%, compared with a gain of 21.5% for the Index. With one month in for 2014, the statistics have started to reverse themselves.  The group reported a return of 7.5% compared with a loss of 3.5% for the Index. Thus, the time may now be right to consider adding a Precious Metals fund as a smaller percentage to one’s portfolio if the broader market continues its uneven performance.  

 

 Fund Name: Gabelli Gold Fund A

 Ticker: GLDAX

 One Month Return: 13.05%

 Objective: Maximum total return, through long-term capital appreciation income.

 Investment Strategy:

•Up to 80% invested in companies in gold related businesses/activities and gold bullion 
•Investments are made on a global basis
•Invests in companies that have strong management as well as strong financials and operate low cost, long life mines 
•Fund will also invest in “defensive investments” such as money market instruments and short-term fixed income securities

 Fund Name: Tocqueville Gold Fund

 Ticker: TGLDX

 One Month Return: 12.22%

 Objective: Long-term capital appreciation.

 Investment Strategy:

•Invests at least 80% of its assets in securities of companies engaged in processing or mining gold
•Investments are made on a global basis
•Seeks investments that are undervalued, employing a “bottom-up” selection process as well as fundamental proprietary research
•Low portfolio turnover

 Fund Name: Fidelity Adv Gold I

 Ticker:  FGDIX

 One Month Return: 11.80%

 Objective: Capital appreciation

 Investment Strategy:

•Generally invests in common stocks and certain precious metals
•Invests primarily in companies which are engaged in exploration, mining, processing or dealing in gold and to a lesser extent in other precious metals and minerals
•Investments are made on a global basis
•Selects investments, utilizing fundamental analysis such as financial condition and industry position as well as market and economic conditions 

 

In the table below, we have listed 10 top-performing funds through January 31, 2014, 

that we follow in our Fund Advisor database. 

 

 

 

  

10 Top Precious Metals Funds Performance 

Fund Name 

Ticker 

% 1 Month 

Total 

Return 

% 3  

Month 

Total 

Return 

% 6 Month 

Total  

Return 

% 1 Year Total Return Annualized 

% 5 Year 

Total 

Return 

Annualized 

Gabelli Gold Fund A 

GLDAX 

13.05 

-3.73 

-4.56 

-40.07 

-20.66 

Tocqueville Gold Fund  

TGLDX 

12.22

  

-2.87

  

-6.13

  

-37.02

  

4.09

  

Fidelity Adv Gold I 

FGDIX 

11.80

  

-5.24

  

-7.93

  

-41.17

  

-5.45

  

Van Eck Intl Investors Gold Y 

INIYX 

11.77

  

-4.47

  

-8.89

  

-37.39

  

  

American Century Global Gold Inv 

BGEIX 

11.31

  

-4.88

  

-9.23

  

-40.54

  

-3.82

  

PIA OCM Gold Fund 

OCMGX 

10.88

  

-3.48

  

-6.21

  

-37.49

  

-1.69

  

Invesco Gold & Precious Met Y 

IGDYX 

10.50

  

-4.34

  

-7.77

  

-35.33

  

0.38

  

Wells Fargo Precious Metals A 

EKWAX 

10.01

  

-6.54

  

-8.43

  

-39.25

  

-2.31

  

USAA Precious Metals&Minerals 

USAGX 

9.89

  

-7.09

  

-8.34

  

-41.34

  

-2.71

  

First Eagle Gold Fund A 

SGGDX 

9.72

  

-6.52

  

-7.55

  

-37.42

  

-1.96

  

Precious Metals Objective Group 

  

7.51 

-5.07 

-5.58 

-34.36 

-1.20 

  

At the time of this article's writing, the author did not have positions in any of the funds mentioned.