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Vanguard Precious Metals VGPMX
Old 08-03-2014, 12:15 PM   #1
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Vanguard Precious Metals VGPMX

Opinions on VGPMX?

Seems like a good way to get exposure to commodities.

Fund has recently started to turn up after several years of dismal returns.
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Old 08-03-2014, 12:36 PM   #2
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What are your expectations for the prices of the commodities that the fund owns?
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Old 08-03-2014, 12:46 PM   #3
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I expect them to fluctuate.


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Old 08-03-2014, 12:49 PM   #4
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why would you buy a precious metals fund?
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Old 08-03-2014, 01:01 PM   #5
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Originally Posted by jerome len View Post
why would you buy a precious metals fund?

http://www.cbsnews.com/news/the-case...tals-equities/

To diversify and reduce overall portfolio risk. Above article sites Wm Bernstein, saying PM funds often go opposite direction of traditional stock returns.


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Old 08-03-2014, 03:34 PM   #6
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Well, I was in this fund for around 5 years, partly because I wanted easy exposure to gold. It was more of a reflection of the ideas behind Ron Paul's (yes, the old prez candidate) investment portfolio which had significant gold exposure.

Then I got connected to an IVA advisor who convinced me that a good portfolio for me didn't need any exposure in this manner. I eventually changed my allocation based on this advice (although I didn't go with IVA, sticking with largely Vanguard index funds), and sold all of this position, which has so far turned out to be a good move. I think it's a fine fund for what it is, but for now it's not for me.
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Old 08-03-2014, 07:56 PM   #7
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I think some exposure to commodities is fine. I wouldn't go above 5% of AA.
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Old 08-04-2014, 07:20 AM   #8
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why would you buy a precious metals fund?
I think the belief at this time may be that owning metals miners provides a hedge against other investments. However, this did not work in the last recession. The fund went down something like 70%. It does look like it should continue to tick upward this time.
There's a thread on GDX, an etf that follows similar companies.
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Old 08-06-2014, 04:59 PM   #9
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Commodities? I'm still holding PCRIX. Vanguard has access to it for far less than than the $1MM sticker price.
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Old 08-06-2014, 05:16 PM   #10
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PCRIX-PIMCO? With El-Erian's departure, who knows what's going on. Plus, it's stated expense is 0.74%, almost triple Vanguard PM, and it owns other PIMCO funds, which I think adds another layer of expense.


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Old 08-06-2014, 07:23 PM   #11
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apples and oranges... If you want exposure to PM only - do that. If you want exposure to commodities including PM, then do that.
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Old 08-09-2014, 03:35 PM   #12
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Opinions on VGPMX?


.

Rather than a fund, why not exposure to physical gold and silver for some small part of your assets ?




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Old 08-09-2014, 05:53 PM   #13
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Rather than a fund, why not exposure to physical gold and silver for some small part of your assets ?
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My safe deposit box is already so heavy with gold I can barely lift it.
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Old 08-09-2014, 06:08 PM   #14
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I do not have any gold but if one has trouble lifting their gold wouldn't that be too much? 10 pounds of gold goes for over $200,000 right?
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Old 08-09-2014, 07:40 PM   #15
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Have to add this graphic, from Seekingalpha.
Commentary just after the graphic says, "This chart is the key to understanding why gold plummeted in 2013."
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Old 08-09-2014, 11:26 PM   #16
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Have to add this graphic, from Seekingalpha.
Commentary just after the graphic says, "This chart is the key to understanding why gold plummeted in 2013."
I haven't the foggyist clue what that graph is trying to show...
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Old 08-10-2014, 03:50 PM   #17
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I haven't the foggyist clue what that graph is trying to show...
Here's a different view, now isn't that better?

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Old 08-11-2014, 10:15 AM   #18
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Is gold the way to go to counter stock market cycles? Oil and energy shortages in the past have driven up prices and hurt stocks, but the energy sector soared. I'm sure enough that energy and commodity shortages will repeat that this is in my alternative allocation.
Gold soars as a safety haven for fearful times as in wars as I see it. Comments?
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Old 08-11-2014, 10:23 AM   #19
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Is gold the way to go to counter stock market cycles?
Whoever comes up with the correct answer to this question is worth their weight in gold.
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Old 08-11-2014, 12:07 PM   #20
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Whoever comes up with the correct answer to this question is worth their weight in gold.
IMO, the correct answer is no. It worked for Ron Paul (at least for a while).

Bill Fleckenstein (MSN money columnist), someone I normally read for his economic take, has been harping on gold for at quite a few years. But even he has cooled on it now a little.
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