Gold funds down by 80pc: should you invest?
By GCRU Gold News on Thursday, November 6 2014, 11:55 - Permalink
The price of gold bullion has fallen by 35pc in three years but every gold fund has more than halved, with some losing even more.
Funds that give private investors exposure to gold have hugely magnified recent falls in the price of the precious metal itself.
While gold bullion has lost 35pc of its value over the past three years, one gold fund, MFM Junior Gold, has fallen by 83pc over the same period.
Others have performed almost as poorly, with the popular BlackRock Gold & General fund down by 61pc over the same period and Ruffer Baker Steel Gold 73pc lower.
In fact all seven gold funds available to British investors have more than halved in three years, hugely magnifying the fall in the gold price.