Medium term growth in gold mining funds?

[14k]

It has been recommended to me to put £5k into a Merril Lynch World Gold Fund a/c ($) which is based on gold mining companies.

 

I believe over the next 5 years the value of Gold will go up (probably plenty of ups and downs along the way), can the same be said of mining shares? I am also looking to hold some physical gold - probably through goldmoney.com amounting to £10k. In total this will make up about 18% of my savings.

 

I am in the process of tweaking a portfolio of investments which was suggested to me by an investment manager. It is for medium term growth of which I hope to buy a home for my family by the end of it. I am in my 20's so still believe I have time on my side. I have never done anything like this before with this amount of money so I'm quite frightened. In total I have about £85k to use.

 

£5k will also go into a (Schroder) Tokyo fund which I'm happy with, but the rest I'm unsure about; European/Eastern European funds, and UK commercial property. The later I especially dont' agree with. I'm hoping to stay 40% cash (£)

 

Could anyone advise further? I understand fees can be high with investment funds, but I have gone through all of this and am comfortable. I don't have time to pick shares myself everyday (although I will have a go with this on some of the cash left over) and certainly can't study trends in the multiple of overseas markets I hope to invest in.

 

Thanks in advance for any feedback. Can I also post this in the general thread?

[chas and dave]

Read, read as much as you can (sounds like you have) as there is loads of what seems excellent info around, you just won't find in the UK media.

Many of the subjects you mention have been covered on this site & HPC, and should be searchable.

 

I certainly feel very uncomfortable holding lots of ££££s, and that is my main driver to diversify.

Investigate BullionVault as well for physical gold holding - I've found it very good, very professional, but I am not that experienced.

Can't comment on MerrilLynch and relationship with gold price, but I am certainly considering the fund myself. Plus as a UK investor, Nufcor (uranium) possibly.

 

Timing must be so important - there is a feeling expressed in many places that there may be a late summer/autumn window around about now for moving into gold if you haven't already.

 

Prices of silver and gold have been falling a little today.

I have bought 800g of BullionVault gold and 100oz physical silver today. I have invested c£20k in gold but would like to invest a little more over the next week or so, but will wait see.

 

But don't listen to me.

Good luck.