DEFINITION of 'Gold Fund'

A mutual fund or exchange-traded fund (ETF) that invests primarily in gold-producing companies or gold bullion. The price of shares within a gold fund should correlate very closely to the spot price of gold itself, assuming the fund holds the majority of its assets in bullion or in the stocks and bonds of gold miners and manufacturers.


While many mutual funds focus on manufacturing and production stocks within precious metals, a few new ETF entries have focused primarily on ownership of gold bullion. Gold funds are a valuable tool for investors, including speculators (gold can be a very volatile commodity) and those wishing to hedge against geopolitical instability. Gold is also valuable as a bet against a falling currency. By investing in a gold fund, a retail or institutional investor can gain exposure to this asset without the hassle of taking delivery of physical gold assets, which is often required in the commodities market.

  1. Bullion

    Bullion refers to gold and silver that is officially recognized ...
  2. Digital Gold Currency - DGC

    An electronic, private currency backed by gold bullion. Companies ...
  3. Bullion Market

    A bullion market is a market through which buyers and sellers ...
  4. Gold Bull

    A slang term for a market or investor who is bullish on gold. ...
  5. Gold Certificate

    A physical document resembling a paper bank note that entitles ...
  6. Gold Fix

    The twice-daily act of setting gold prices by the five members ...
Related Articles
  1. Investing

    The Midas Touch For Gold Investors

    Find some golden opportunities by investing in gold commodities or futures contracts.
  2. Investing

    GLD: iShares Gold Trust ETF

    Learn about the SPDR Gold Shares ETF, how it tracks the price of gold, and what type of investors may want to hold shares in their portfolios.
  3. Investing

    Which Gold ETF Should You Own?

    Now may be a good time to get into gold ETFs. Here's how to do so, and which ETFs should be considered the best bet.
  4. Investing

    4 Ways to Invest in Gold (GLD, FSAGX)

    Discover four different investment vehicles that investors can utilize to obtain exposure to the gold market in the precious metals sector.
  5. Investing

    Does it Still Pay to Invest in Gold?

    Gold's appeal dates back thousands of years. Find out whether gold can live up to the hype.
  6. Investing

    The Top 5 Gold Equity Mutual Funds for 2016

    Discover five gold equity mutual funds that specialize in investing in companies that are engaged in mining, processing, fabricating or distributing gold.
  7. Investing

    Investing in Gold: Direct Vs. Professional Management (ABX, GG)

    Find out how you can access the gold market through common stock, futures contracts, and actively managed or passively managed ETFs and mutual funds.
  8. Financial Advisor

    4 Ways You Can Invest In Gold Without Holding It

    Owning gold can be a store of value and a hedge against unexpected inflation. Holding physical gold, however, can be cumbersome and costly. Fortunately, there are several ways to own gold without ...
  9. Investing

    (GLD, DGL, IAU) 3 Bond ETFs in the Gold Sector

    Find out more about the top ETFs that track the gold sector, such as the SPDR Gold Shares ETF, the PowerShares DB Gold ETF and the iShares Gold Trust ETF.
  10. Investing

    A Gold Bug's ETF Plays (GLD, GDX)

    Gold has become a popular investment. These ETFs can help gain exposure to this precious metal.
  1. For investors, what are the alternatives to owning physical gold?

    Learn some of the primary alternate ways that someone can invest in the gold market besides simply purchasing physical gold ... Read Answer >>
  2. How can I track gold prices?

    Learn how to track gold prices. Gold is a commodity traded as a physical asset and a futures contract. The one you track ... Read Answer >>
  3. What are some of the most popular mutual funds for investing in the metals and mining ...

    Explore some of the many mutual fund options available to investors that focus on holdings in the metals and mining sector, ... Read Answer >>
  4. How can value investors benefit from investing in the metals and mining sector?

    Find out how to benefit when investing in precious metals sector, and understand how gold can help hedge against currency, ... Read Answer >>
Hot Definitions
  1. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  2. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  3. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  4. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  5. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  6. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
Trading Center