How to Invest in Gold Mutual Funds

Series Summary

Personal finance is the application of financial principles to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, while taking various financial risks and future life events into account. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies, and income tax management. In this free video series, a portfolio manager provides advice for using stocks and bonds. Learn how to invest in mutual funds, how to compare online brokers and how to buy stocks without a broker. Discover how to buy municipal bonds, and learn about tax-free bonds and junk bonds. With this financial planning advice, stockholders are well-prepared to face any investment question they may encounter.

Video Transcript

"Ok, so you're wondering how to invest in gold mutual funds. Mutual funds that invest are made up of either units of gold bullion that they represent or, more often than not, they represent companies that do gold mining, gold processing, they are involved in some way, shape or form in the processing and mining of gold. And the way you would invest in a gold mutual fund is really the same way you would look at investing in any mutual fund. Look at gold prices, see what gold is doing on the market. look at the individual companies if you want. See what is happening in the market and if gold is very high at that point, maybe it's not a great time to invest in a gold mutual fund, maybe you're buying too high and it's looking like everything is going to be coming down soon. If gold is at a great price, if you think that the companies that do the mining and the processing and so forth are undervalued and will be making more money in the future, then that's a great time to go and buy a mutual fund that represents that industry. The one danger to be aware of is you're investing in one commodity - in gold - and in that particular industry and it will track up and down and it's not really that diversified, so that is the one word of caution when investing simply in gold."