Vanguard Precious Metals Fund

[ash]

Another question for you Vanguard experts.

I'm moving my company's 401K funds over to Vanguard. Apparently however, Vanguard closed the Precious Metals Fund to new investors in February of this year, and our Vanguard rep says their is no similar fund, and he's got no info about re-opening the fund.

Any ideas? I've got several employees that want to invest in this fund.

We can leave some of our funds at Oppenheimer, but I don't like the complexity of having two different fund managers.

 

[larry]

Is this a signal that it may be time to look at locking in gains on commodities investments? Although, I havent't heard my barber tell me that he's buying commodities yet.

 

[preben]

After the last week drop you might see enough panic selling for it to re-open. Would you have access to the Vanguard broker services? Then you can pick up some ETFs or closed end funds like GLD, ASA Etc. to cover that aset class until VGPMX re-opens.

Another (non-Vanguard...) fund with resonably low e/r and gold focus is BGEIX.

Cheers!

 

[cute fuzzy bunny]

For what its worth, I wouldnt touch Precious Metals right now with a ten foot pole. Chasing the highflier isnt a good idea. Trying to get into a closed fund is worse...they close it for a reason...everyones piling in. Usually a good indicator that a fund has already had its day, and if it hasnt, the money inflow will change the dynamics from buying their best ideas to having to invest all that inflow money in their 95th-200th best ideas.

Sold mine a few months ago. I think its all speculative from here.

More of the "run away when things are on sale, and charge forward cash in hand when things are selling at a premium"...

 

[HFWR]

Sold VGPMX when they closed, with an 85% gain in 7 months. Sold GLD too soon at $63, for a 54% gain. I'm happy...

Bought some PCRIX (5% of port), and intend to hold LT...

 

[cute fuzzy bunny]

Where will you hold it? Between your knees?

 

[HFWR]

Based on previous input, I been told I have gold between my legs...

 

[REWahoo]

Based on previous input, I been told I have gold between my legs...

Guess we now know what your family jewels are made from.

 

[HFWR]

Pyrite... :

 

[REWahoo]

Pyrite... :

You are such a fool... :

 

[ash]

While I appreciate the investment advice, I have employees who wish to invest in this fund (and I don't ever give specific investment advice to employees, way to much chance for bad blood down the road..."I lost money!", "I didn't make any money!"...) so I was merely wondering if anyone knew of an alternative fund choice.

 

[Craig]

When I put in our company's 401K, we used MetLife, and included self-directed brokerage accounts.  Those would allow employees to invest in whatever securities they please, including Vanguard's precious metals fund when it someday reopens.

Here is some interesting history ... especially in light of the premise above, and subsequent events in the precious metals markets:

http://news.morningstar.com/article/article.asp?id=77351&_QSBPA=Y

Vanguard Closes Precious-Metals Fund

Fund family concerned about hot money flooding into volatile sector fund.

by Dan Culloton | 06-28-02 | 04:46 PM

In the midst of the biggest rally for precious-metals funds in nearly a decade, the Vanguard Group has shut its Vanguard Precious Metals Fund VGPMX to new and existing investors, including those who own the fund through employer-sponsored retirement plans.

Vanguard took the severe steps to curb hot money pouring into the offering.

The fund has raked in new cash as investors have sought refuge in precious-metals funds amid a tumbling stock market and low interest rates ...

Also, go to a stock charting service such as www.bigcharts.com ... interesting to compare XAU (precious metals index) with VGPMX, as well as the S&P 500 ... the fund is quite successful.  Very interesting to see VGPMX beating the S&P over the last decade.

As far as alternatives, someone else will need to add that color ... one source list is www.fidelity.com ... select "Research"; then "Mutual Funds", then "Specialty-Precious Metals" in the Investment Category box (VGPMX not listed, since now closed).  Similar for ETF's, using "Materials".

Are you sure VGPMX is also closed for 401K's?  Institutional investors can sometimes get around the closed fund issue, no?  (and, 401K's are sometimes treated like institutional investors ... though, see history above ...).

 

[Nords]

Very interesting to see VGPMX beating the S&P over the last decade.

I'm forming the opinion that just about any dart-throwing chimp could outperform the S&P500 over the last decade.

Or the next decade.

And I'll even expand that definition to Playboy bunnies.

 

[cute fuzzy bunny]

Or those guys leading the cnbc contest.

Every time they trot one out and he tries to explain how he was brilliant by picking some stock that they inexplicably shot up 300% the next day...I always mutter... 'might as well just hook your arms up under your armpits, yell "oook oook oook" and then show us the dartboard.'