Precious Metals Diversified Commodity

Precious metals diversified Funds invest the majority of their assets in a... Precious metals diversified Funds invest the majority of their assets in a mix of precious metals. For example, a fund may own both gold and silver. Alternatively, a diversified metals fund may own both platinum and palladium. These funds are passively managed, and tend to own physical metal as opposed to futures contracts. Investors are attracted to precious metals diversified funds because they offer exposure to multiple precious metals at the same time. Precious metals can outperform in times of economic stress (such as inflation or recession), and can help investors maintain their purchasing power. The advantage of owning more than one metal at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when gold outperforms silver, for example, and vice versa. Having said this, precious metals do tend to move together, in general. A bull market in gold typically happens alongside a bull market in silver, for instance. As a result, while these funds may be somewhat diversified, they are still a bet on precious metals as a sector. Precious Metals Diversified Funds may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 12/27/2024 View more View less

Precious metals diversified Funds invest the majority of their assets in a mix of precious metals. For example, a fund may own both gold and silver. Alternatively, a diversified... Precious metals diversified Funds invest the majority of their assets in a mix of precious metals. For example, a fund may own both gold and silver. Alternatively, a diversified metals fund may own both platinum and palladium. These funds are passively managed, and tend to own physical metal as opposed to futures contracts. Investors are attracted to precious metals diversified funds because they offer exposure to multiple precious metals at the same time. Precious metals can outperform in times of economic stress (such as inflation or recession), and can help investors maintain their purchasing power. The advantage of owning more than one metal at the same time is that an investor doesn’t have all their eggs in one basket. There can be times when gold outperforms silver, for example, and vice versa. Having said this, precious metals do tend to move together, in general. A bull market in gold typically happens alongside a bull market in silver, for instance. As a result, while these funds may be somewhat diversified, they are still a bet on precious metals as a sector. Precious Metals Diversified Funds may be appropriate for investors willing to take on considerable volatility in search of higher returns. Last Updated: 12/27/2024 View more View less