When it comes to investing in precious metals, many turn to mutual funds that specialize in this sector. These funds typically focus on mining stocks but may also include physical bullion such as gold and silver. While gold is often the primary focus, exposure to other precious metals like platinum and silver is also common.
Precious metals companies are spread globally, with major firms located in countries like the United States, Canada, Australia, and South Africa. These funds tend to exhibit higher volatility compared to traditional equity funds due to the nature of commodity investments.
One notable fund in this space is the Allspring Precious Metals Fund, previously managed by Wells Fargo Asset Management before being rebranded as Allspring Global Investments. The fund primarily invests in companies involved in gold exploration, mining, and processing, as well as those generating significant revenue from such activities.
Another prominent player is the Fidelity Select Gold Portfolio Fund, established by Fidelity Investments with a focus on capital appreciation. The fund invests in a range of gold-related operations, including common stocks, bullion, and coins, both domestically and internationally.
The Gabelli Gold Fund, managed by Caesar Bryan, aims for long-term capital appreciation by investing in U.S. and foreign equity securities of companies engaged in gold-related operations. This fund has shown strong performance over the years, with significant holdings in major players like Newmont and Agnico Eagle Mines.
The Victory Capital Precious Metals and Minerals Fund, managed by Mannik Dhillon, seeks to preserve capital purchasing power against inflation. The fund predominantly invests in companies involved in the exploration, mining, or processing of various precious minerals, with a focus on reducing portfolio volatility.
Lastly, the Invesco Gold and Special Minerals Fund, managed by Shanquan Li, targets long-term capital appreciation through investments in mining companies focused on gold and other precious metals. With significant assets under management and a diverse portfolio, this fund offers exposure to various segments of the metals industry.
Investing in precious metals funds can serve as a diversification strategy and a hedge against inflation for many investors. Gold, in particular, remains a preferred choice due to its intrinsic value, durability, and historical significance as a store of wealth.
While gold dominates the precious metals landscape, other metals like silver, platinum, palladium, and rhodium also play vital roles in various industries. These metals, prized for their rarity and unique properties, offer investors a range of options for diversifying their portfolios and managing risk.