Other Investing Opportunities

Gold and Other Precious Metals

Should I include gold as part of my investment portfolio in the form of mutual funds?

According to the American Association of Individual Investors, you most likely should not, for a variety of reasons. Gold sector funds often invest in the underlying mining companies that produce gold bullion. Very few funds invest in physical bullion itself, and some funds invest in commodity contracts, hoping to reap a reward as prices increase. The volatility in the price of gold as an investment exposes your portfolio to risk. And although gold is used as a hedge against many future conditions, even as the stock market portion of a portfolio may decline, the gold portion of the portfolio may also decline and behave in tandem with the broader market.



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