Diversification is the number one rule in investing. One way to do this is to invest in a number of funds that invest in gold for you. This allows you to hold a number of different types of investments so that you have more confidence that your money is safe.
Gold hedge funds are funds created with the goal of financial insurance — making sure investors have something to fall back on if the economy worsens, currencies inflate, or political turmoil hits. Gold has long been used as a hedge against inflation.
The following are some of the best gold hedge funds that are available:
- Proshares Ultra Gold Fund (UGL). The Proshares Ultra Gold Fund is one of the most actively traded issues on all of Wall Street. Since the rise of ETF’s (Exchange Trades Funds), issues like Proshares Ultra Gold have taken off. The advantage that it provides is that it is traded in the same fashion as a regular stock whereas many gold funds are traded more like mutual funds. With a mutual fund, you may not trade in or out of it during the day. You have to wait until the market has closed before you can see if it has increased or decreased in value. With the Proshares fund, you can trade in or out of it as often as you like during the market day.
- Midas Fund (MIDSX). The Midas Fund named as a partody of the Midas touch is a fund that invests solely into gold as a commodity. Some funds are known to invest in both gold and gold stocks. However, with the Midas fund you know that you are just getting the real thing. This makes it easier for you to track your day to day earnings or loses simply by following the path of the price of gold. You don’t need to do any stock research.
- Oppenheimer Gold A (OPGSX). The Oppenheimer Gold Fund A is a top flight choice particularly for those who would like to just passively invest. This gold fund has been around longer than most as is managed by some of the best professionals in the world. The Oppenheimer name has been trusted in investing for decades. If you are an investor who is interested in placeing your money in the market and then just letting it grow without real active wealth management, then you should be interested in investing in this kind of fund. They will spread your money around the gold stocks as well as gold as a commodity. By doing it this way you will get a basket of different investments all rolled into one.
These three funds are just the tip of the iceburg when it comes to investing in gold. Check out these as well as others to get your gold investing adventure started.