A number of collective investment vehicles specialise in investing in the shares of gold mining companies. The term "collective investment vehicles" as used here should be taken to include mutual funds, open-ended investment companies (OEICs), closed-end funds, unit trusts, and any similar structures. A wide range of such funds exists and they are domiciled in a number of different countries. These funds are regulated financial products and as such it is not possible here to provide details on any specific funds.

Funds are likely to differ in their structure - some may invest simply in the shares of gold mining companies, some may invest in companies that mine minerals other than gold, some may invest in futures as well as mining equities and some may invest partly in mining equities and partly in the underlying metal (s).

It would be misleading to equate investment in a gold mining equity with direct investment in gold bullion as there are some significant differences.The appreciation potential of a gold mining company share depends on market expectations of the future price of gold, the costs of mining it, the likelihood of additional gold discoveries and several other factors. To a degree, therefore, the success of the investment depends on the future earnings and growth potential of the company.

Most gold mining equities tend to be more volatile than the gold price. While they are subject to the same risk factors that influence the prices of most other equities there are additional risks linked to the mining industry in general and to individual mining companies specifically.

Please ask your financial adviser or stockbroker for advice on this sector.