First Eagle Gold
Another way to invest in gold is indirectly, via companies that actually mine the gold.
There are some risks. You’re investing in companies, not physical gold itself, so success depends on traditional metrics like profits. And many of these companies’ bottom lines aren’t just affected by the price of gold, but also operational costs, political risks and difficulties in finding new reserves. Still, there’s opportunity for funds that have a knock for finding solid operators.
This certainly has been the case with the First Eagle Gold (MUTF:SGGDX) fund, which has generated average annual returns of more than 16% for the past decade. Some of its top equity holdings include Agnico Eagle Mines (NYSE:AEM), Goldcorp (NYSE:GG) and Randgold Resources (NASDAQ:GOLD), though the fund also has roughly 18.5% of its assets in physical gold, meaning you are getting some direct exposure.
First Eagle Gold’s load-waived A shares carry a 1.2% expense ratio. SGGDX also yields roughly 1.3% in dividends.