Precious Metals Mutual Funds – Pivotal Points In The Professional Overview
Precious Metals Mutual Funds Give You A Stake In A Minuscule, Yet Explosive Market Precious metals mutual funds are an easy way to participate in what is likely to be viewed in the history books as an epic bull market run. Aside from all of the fear, factors, and forces driving interest in precious metals, the inherent size constraints of the market makes precious metals mutual funds well-poised to explode with even modest interest from the general buying public. While I have some general concerns about ETFs in general, and wonder about the sufficiency of bullion stockpiles, these ETFs are, in the same breath, useful for making a point. Every silver ETF on the planet could be added up and the conglomerate would have to quadruple in order to be as big as fast food burger joint McDonald’s. The precious metals markets are very, very tiny. The pharmaceutical industry is literally hundreds of times bigger than the silver market. Tiny markets, as with tiny mining stocks, become very volatile in an upward direction when buying pressure mounts. It’s not unusual to see prices go parabolic. From another vantage point, all of the gold ever mined on the planet is paltry when compared to the amounts of national economies, debt, and so on. For instance, the U.S. gross domestic product is double the entire world history of mined gold. U.S. debt levels are nearly three times as large and worldwide gold ever mined. So, as you can see, precious metals mutual funds are set to explode when even modest amounts of money begin flowing into them. Precious Metals Mutual Funds – Last Call! A couple of reputable precious metals mutual funds worth looking into are run by award winning expert mining stock manager Frank Holmes. The U.S. Global Investors Gold and Precious Metals Fund (USERX) focuses on the major metal producers that are established and bringing metal out of the ground. The sister fund is the U.S. Global Investors World Precious Minerals Fund (UNWPX). This is quite similar to USERX. The big difference is that it takes 20% of invested assets and allocates them to the junior mining companies, leaving the rest in large producers. This fund, therefore, grants access to the explosive returns that can be generated from exploration plays the work out extraordinarily well. These precious metals mutual funds offer a number of benefits over a straight bullion fund. Again, they are actively managed, so you don’t have to worry about being tied to an index and potentially married to a company you don’t like. They are also not known to be labor intensive, so inactive investors can more or less buy and hold during a bull market. Though they tend to have a higher annual expense ratio than other vehicles, you do get what you pay for in terms of management. So, as long as you don’t mind investing the required $5,000 to get started, this can be a great solution. Larger investors probably will not mind. Smaller investors either may not have the $5,000 to start, or else it may represent too large of a portion of their overall account. In any event, knowing about these precious metals mutual funds helps give you a well-rounded familiarity with your options.