NEW YORK (TheStreet) -- Investors who hold gold to shield their portfolios from accelerating inflation now wish they were alchemists. Seven of the 10 worst-performing equity mutual funds in January track mining shares.
The Rydex Series -- Precious Metals Fund (RYPMX) tumbled 13% last month, bringing its 12-month gain to 29%. Top holdings include Freeport McMoRan Copper & Gold (FCX), Newmont Mining (NEM) and Barrick Gold (ABX).
Last Friday's jobs report showing unemployment fell to 9.7% in January from 10% in December has the gold bugs in a tizzy. Turning the corner on jobs -- and the economy -- has reduced the fear-based premium that was supporting the price of gold. After hitting a high of $1,217 an ounce in December, the spot price of gold has plunged to around $1,060.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV