Fool's Gold? Precious Metal Funds Are Up, But Prospects Aren't

If this week's stock market jitters have made you think about investing in something "solid" like gold, think again. Although precious metals funds were up about 2.4% on the year as of Wednesday while the stock market plummeted -- as is often the case with precious metal mutual funds -- all that glitters is not gold.

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The category has been looking up of late, but analysts say much of the move is due to technical market factors and that investors should not mistake what could be a momentary blip for a comeback. Furthermore, a look at the long-term track record of precious metal funds is about as dismal as it gets. Even some of the better-performing funds have long-term returns in the red, making this area one of the worst performing in the mutual fund world. ...