Investing in gold is often referred to as an investment insurance policy. When things are going bad with let's say the dollar, gold is most likely to climb in value, protecting you somewhat. Gold funds have been showing great gains for quite some time and with the current problematic world economic circumstances, gold funds aren't likely to be taking a downward slide any time soon. Investing in a gold mutual fund is a way to add some flexibility into your investment. Instead of storing the physical product yourself you can simply invest in a fund. A good fund will be able to trade your gold on a daily basis as opposed to if you hold gold yourself you will find the disposal process cumbersome.

A fund manager will ensure your investment is diversified and give you the qualified help you need to make the most of every dollar you put into the investment. You do need to do your homework though when it comes time to choosing your fund. Over the last several decades there have been many gold funds that for one reason or another just haven't survived.