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MoLocke
08-27-2011, 10:55 AM
GLD, SLV, AGQ? Not really big into mutual funds, so I would have no idea if there are any that contain those? If there are any could someone maybe point me in a direction towards them for some info? Might be a good play? Thanks.

Numisgold
08-27-2011, 11:08 AM
I'm not aware of any. The gold mutual funds I'm aware of hold mainly gold stocks (TGLDX, USAGX, USERX, GOLDX, etc.). There are a couple dozen of these.

If you want to play gold and silver those 3 ETF's you have listed are large and liquid enough to give all the thrills/chills you need. A mutual fund doesn't
even trade during the day so you're at the whim of a single closing price to transact a trade. AGQ (2X silver bear) can be a widow-maker if used improperly. I doubt you'd ever seen that in a mutual fund. Just as easy to build your own ETF/mutual fund with a combo of choices. TGLDX at one time was keeping around 10% of their holdings in physical bullion but currently at 6%.

Numisgold

MoLocke
08-27-2011, 11:10 AM
I'm not aware of any. The gold mutual funds I'm aware of hold mainly gold stocks (TGLDX, USAGX, USERX, GOLDX, etc.). There are a couple dozen of these.

Numisgold

Do you know the names of those mutual funds? I'd like to do some reading on them.

Numisgold
08-27-2011, 11:43 AM
http://www.goldsheetlinks.com/mfund.htm

This link has numerous references. If I had to choose one today I'd probably go with USAA's USAGX. But it really comes down to what are their top 10 picks. And what you find on Yahoo Finance might be way out of date so best to check the actual website to find their current holding's mix. They will be different than what this link presents. Some carry oppressive fees of up to a couple percent while others may only be 1/2 to 1%. Some have some significant redemption fees (>2%) if you trade more frequently than say 90 days. When I was holding these I gave serious thought to TGLDX, USAGX, FSAGX, Midas, Scudder, and Oppenheimer as choices. Finally went with Toqueville (TGLDX) as they had the best mix of fees and holdings for what I was looking for. But those were the days before ETF's GDX and GDXJ came out. Those basically mimic about the same thing but allow daily trading. Then again the High Frequency traders and naked shorts have created havoc in the miners the past few years.

Some of these gold mutual funds will be heavily weighted to large cap gold miners while others will shoot for the intermediates and small caps. While I've always preferred the smaller and more agile miners, in the current environment of having gold in the hand, and lower risk, the large caps have done better. But that could change at any time. According to yahoo finance TGLDX's major holding is Ivanhoe mines, a copper-gold player where it's largest mine is a 80/20 copper-gold split. So this may be more a copper play than a gold play. But they do claim 45 MILL ounces of gold. Of course yahoo is out of date as here what the Toqueville site had listed for TGLDX's top 10 holdings. Not a bad group out of 65 holdings but not as impressive to me their picks from 2004 when I first owned this fund. I haven't held it since 2008.

Physical Gold 5.74%
Goldcorp, Inc. 5.39%
Osisko Mining Corp. 5.11%
Ivanhoe Mines Ltd. 5.06%
Newmont Mining Corp. 3.72%
Silver Wheaton Corp. 3.50%
Gold Resource Corp. 3.38%
Randgold Resources Ltd. 2.90%
Royal Gold, Inc. 2.63%
IAMGOLD Corp. 2.51%

You can compare this list with the other mutuals to see how they stack up. And I would also compare them to GDX and GDXJ to get a flavor of what they hold. TGLDX charges a 2% redemption fee if held <90 days. I don't think USAGX has that. Here are USAGX's current top 10 holdings.

NEWCREST MINING 7.13%
GOLDCORP INC 6.34%
KINROSS GOLD CORP 5.86%
ELDORADO GOLD CORP 5.29%
ROYAL GOLD INC 4.43%
NEWMONT MINING CORP HLDG CO 4.39%
YAMANA GOLD INC 4.32%
ALLIED NEVADA GOLD CORP R0 4.28%
IMPALA PLATINUM HOLDINGS LTD 4.01%
BARRICK GOLD CORP 3.74%

I think I like USAA's listing a little better than Toqueville's. USAGX is 40% weighted towards top large and mid producers. TGLDX is more heavily weighted towards smaller miners. A good research exercise where one's personal preferences come into play. But a mix of GDX, GDXJ, GLDX, and SIL can do much the same thing from large caps to explorers. Note that neither of those 2 funds above have much if any of South African gold mining risk....probably a good thing. Kinross and Eldorado carry a risk to Turkey and China. Ivanhoe is heavy in Mongolia with their flag ship mine 34% state owned. Hard to separate geo-political risk from these choices.

Numisgold

MoLocke
08-27-2011, 11:58 AM
Great info numi! Gonna check it out when I get into work later... thank you!