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Gold mutual fund QGLDX

edited September 2013 in Fund Discussions
Please share your opinion on QGLDX - the only mutual fund (opened this year) that tracks the price of gold. My interest in this fund is to have exposure to precious metals and avoid as much as possible PM miners. My 401K plan does not allow ETF investment and I have to use only mutual funds.

Comments

  • edited September 2013
    As a trading vehicle on the price of gold, probably okay and looks like it's done a rather decent job tracking gold. As a deeper bet on gold, no. Doesn't invest in physical, just invests in etfs and derivatives. Overall, in terms of funds overall (ETFs and otherwise), I'd say CEF (although that's gold and silver) trading at a discount is probably the best option.
  • GTU is CEF's sibling, and holds only gold.
  • Whoops, I guess I flunked reading comprehension! DavidV, if you can only purchase mutual funds (and not CEFs or ETFs), I think you really can't avoid miners except through your aforementioned QGLDX, or PRPFX which per M* as of 8/31/13 held 21.16% of its portfolio in gold bullion/coins & 5.14% of its portfolio in silver bullion. FEGIX has about 25% in physical gold, and the rest in miners.

    Personally, I am leery of instruments like QGLDX as the management firm might implode a la MF Global right when you need them most.

    Another option is to largely bypass PMs and go for a hard currency fund such as MERKX or buy some funds that specialize in the stock markets of nations considered to have "sound" monetary practices such as Singapore, Switzerland, some Scandinavian countries, etc.
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