silverwood

ETF vs. Mutual Fund: Two Ways to Invest in Gold Miners

Although I agree with the author that buying a gold mutual fund or gold ETF is a good idea, this should be done after you have in your possession the physical metal (gold and silver). The physical metal is insurance against a currency collapse, or severe devaluation.

I disagree with the author's view that gold is just a commodity and it's valuation is only derived from fear of inflation. Gold is a currency and trades as such. Gold is real, natural money.

AS for the choice of investment the authors has suggested FSAGX, the mutual fund would be better for those investors who are seeking long term buy and hold stratergy, while GDX, the ETF would be better suited to those more prone to trading. Personally I would suggest some exposure to the junior explorers as that sector has been completely trashed and careful due diligence on selected companies could prove the greatest rewards.