About this Mutual Fund
The investment seeks capital appreciation; current income is a secondary consideration. The fund normally invests at least 80% of net assets in securities of gold and precious metals operation companies. It generally invests more than 50% of total assets in companies located outside the U.S.
Based on historical Agriculture prices, investing in the actual commoditty will give you a return roughly around 3 times that of investing in companies that make and produce equipment, seed, anything to do with agriculutre.
So in other words, you will make more money by buying physical gold rather than companies that make gold, or make equipment for the gold industry.
Granted, with simply investing in companies, you dont have to store it, or protect it.
There are companies out there that allow you to buy gold like a stock, basically they hold it for you... can't remember any of them, but that's the better play.
I do think that although buying gold is a great way to protect your assets, it will not make you rich... it will simply buy the same amount of stuff it buy today.
For example:
9000.00 in Gold buys a Toyota Camry ( not sure, just an example )
in 10 years, that same gold will only buy you a Toyota Camry, the gold will be worth 40,000.00 by then, but the car will cost that as well...
You can profit in gold in the short term, as a long term strategy, all it does is stays with inflation.
Remember, a 100 years ago, the same gold buys the same oil of today... it doesn't get you MORE oil, just the same.... no growth, yet no loss either... Just depends on what your objective is...
IF you are trying to preserve your asset, good... if you are trying to make your money grow, bad... plus if your house burns down, you lose your gold potentially... robbery, ect...
With all that said, if you want to try and profit in a long term strategy on the price of gold, then investing in a fund that collects gold production companies is smart...
You might want to look into Prosper.com or LendingClub.com - and Become the banker.
I lend out money at interest rates on average of 13% ammoritized over 3 years.
As an example, 325.00 over 3 years will return you 400.00.
There is still risk, people can default, but you can really spread your risk by only lending in 25.00 chunks...
If you can't beat em... Join em.
Oh yeah, and P.S. This kind of social lending is what is going to save our country, breaking away from the Big banks and their financial trickery, and back to the people at fair smart rates. Social lending offers better rates, and gives back better returns than CDs...
Plus on that 325 I lent out, I get paid 10.95 a month in return, instead of having to wait a year to sell a stock for a 13% return... I get it paid back to me slowly over the 3 years...
Then you can take that money, and re-lend it out and make interest on the interest and compound the compounding interest... just like the Fed baby!
