In watching sector rotation it appears that gold may have entered a trough phase from a deep decline. I would like to make a small investment in gold as part of alternative investments for diversification. What information sources do some of the members of the board use. What is your opinion of Fidelity Select Gold as compared to any suggestions of other funds. I would like any vehicle such as OEF,CEF or ETF.
prinx
Comments
Both currently are trading at a discount of over 3% to NAV.
Regards,
Ted
http://www.indexuniverse.com/sections/features/19428-roubini-sees-1000-gold-stronger-us-growth.html?fullart=1&start=3
If you must invest in miners, I'd say either go with one of the etfs (GDX, etc) as a trade, or the best fund in the sector is Tocqueville Gold (which has around 11.5% in physical.)
Going "out on the limb" doesn't need to mean taking a 50% stake in one investment. I agree that if you have a small portfolio slicing and dicing isn't really neccessary or productive. But if say 2-5% of your portfolio equates to thousands of dollars that become a significant number of dollars. For example, a $10,000 investment would equate to 10% of a $100K portfolio. If you invested in USAGX in June, a month later in July you would have gain $2,000 on that $10,000 investment. That's a 20% gain on the investment and impacts your overall portfolio positively by 2%. I would say that is significant. Also, your initial 10% PM allocation is now 12% of your overall portfolio. Rebalancing might be in order.
Successful investing is a process of buying low, dollar cost averaging over time, taking profits, rebalancing long term investments, reducing costs, along with hundreds of other good financial habits. No one thing willl make you wealthy...incorporating most of these habits into your busy life will.
The discount is gone: CEF closed today with a premium of 0.2%
However, GTU's discount is still well over 3%.