A relatively diversified precious metals industry fund like VGPMX is starting to look like an attractive investment. The fund NAV has now fallen to within 4% of its March 2009 low of $10.04, trading at $10.47 last night. As a stock fund, however, I would expect this fund to take a further beating in a real stock market correction, which we have not experienced in quite a long time. Overall we are today only 5% off the current highs by broad market measures. One should keep in mind that this fund had once fallen to nearly $5 back in 1998 just before the long gold bull began. So you could get sliced and diced by the falling knives to the tune of 50% in a coming correction if you invest in this fund at current prices. That said, revisiting the March 2009 low certainly would make this fund very tempting from the long term perspective, seeing that between March 2009 and the highs in 2011 the NAV increased over 180%. The fund has the potential to make you a lot of money (NAV+685% 1998-2007), or hand you your hat when it's done with you (NAV-75% 2007-2009). The NAV is down 63% since April 2011.
