Metals Drive Best Mutual Fund Performers

Filed in archive Mutual Funds on December 25, 2011

© kbeus21

Many of the best mutual funds in 2010 had one thing in common: they were heavily invested in precious metals. Surging metal prices over the last year have been driven by demand for jewelry and construction material , and perhaps some speculation as well. The price of gold surged 28% in 2010, although it has come off some in the new year, and silver has followed suit.

There continues to be strong demand for physical gold out of Asia on price dips, as many investors in China and India are looking for an inflation hedge as they see prices in their economies rising at a rapid clip. Many portfolio managers think that metal prices have more room to run in the long term, and mutual funds like Oppenheimer Gold & Special Minerals Fund (OPGSX) can be a good way to play the trend.