How to Invest in Gold Mutual Funds

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Gold mutual funds are made up of either units of gold bullion or through representation from a gold processing company. Look at gold prices on the market before investing in gold mutual funds with help from a portfolio manager in this free video on personal finance and money management.

Part of the Video Series: Stocks & Bonds
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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.


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