Friday, November 18, 2011

Mutual Funds of Gold Investments

Mutual funds gold investment is an investment that is profitable at this time because of the Mutual Funds of Gold Investments makes gold prices continue to rise as the value of investments.We need to know is a gold mutual fund same as a gold stock, is considered a leveraged play on gold because the underlying mining companies have fixed costs and any increase in the price of gold can increase the percentage of profit quite dramatically. 

For example, suppose it costs a mining company $1000 to mine an OZ(ounce) of gold, when the price of gold is $1600, the profit is $600 but when the price goes up to $1900, the profit is $900--a 50% increase in profits caused by a 11% rise in the price of gold.

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