Vanguard Precious Metals and Mining Fund Review


The Vanguard Precious Metals and Mining Fund is an investment vehicle that provides investors with exposure to the precious metals and mining sectors. Managed by Vanguard, a renowned investment management company, this fund aims to capitalize on the potential growth and diversification benefits offered by companies engaged in the exploration, production, and distribution of precious metals.

Overview of Vanguard Precious Metals and Mining Fund

Equity instruments issued by companies involved in the mining and precious metals industries make up the majority of the Vanguard Precious Metals and Mining Fund’s holdings. The fund concentrates its attention on a variety of sub-sectors, such as gold, silver, platinum, and palladium mining operations, as well as other metals that are mined. The goal of the fund is to mitigate risk and take advantage of future growth opportunities by diversifying its holdings across multiple industries and investing in a broad portfolio of these companies.

Key Features and Benefits

Exposure to the Precious Metals and Mining Sector

The fund offers investors exposure to a specialized sector that is known for its potential as a hedge against inflation and geopolitical uncertainties. Precious metals, such as gold and silver, have historically shown the ability to retain value and serve as a store of wealth during economic downturns. Investing in companies involved in the mining and production of these metals provides an opportunity to participate in their potential price appreciation.

Diversification Potential

The Vanguard Precious Metals and Mining Fund provides diversification benefits by investing in a broad range of companies involved in different aspects of the precious metals and mining industries. The fund includes companies engaged in exploration, development, production, and distribution, thereby spreading investments across various sub-sectors within the industry. This diversification can help reduce risk by mitigating the impact of any single company’s performance on the overall fund.

Professional Management by Vanguard

The Vanguard Precious Metals and Mining Fund is managed by Vanguard’s experienced team of investment professionals. Vanguard is known for its low-cost, passive investment approach, focusing on long-term value creation and minimizing expenses for investors. The fund’s management team conducts thorough research and analysis to identify companies with solid fundamentals, growth potential, and sustainable competitive advantages within the sector.

Performance and Past Returns

Commodity prices, the state of the economy, and sector-specific factors can all have an impact on how well the Vanguard Precious Metals and Mining Fund performs. Historical performance can provide insights into the fund’s ability to generate returns over different market cycles.

It’s important to note that the precious metals and mining sectors have exhibited periods of volatility and cyclicality. During periods of rising precious metals prices, the fund has the potential to generate strong returns while experiencing declines during periods of price weakness. Investors should review the fund’s historical performance, considering both short-term and long-term returns, and assess how it aligns with their investment goals and risk tolerance. It is important to remember that past performance is not indicative of future results.

Considerations and Risks

Commodity Price Volatility

Price fluctuations in commodities have a direct impact on the Vanguard Precious Metals and Mining Fund. Changes in supply and demand dynamics, geopolitical factors, and macroeconomic conditions can significantly influence the performance of the fund. Precious metals prices can be subject to substantial volatility, which may have a direct impact on the fund’s returns. Investors should be prepared for potential volatility in the value of their investments.

Sector Concentration Risk

As a specialized sector fund, the Vanguard Precious Metals and Mining Fund may have a higher sector concentration level than broader market funds. This concentration can increase the fund’s sensitivity to industry-specific risks, making it more susceptible to adverse events impacting the precious metals and mining sectors. Factors such as changes in government regulations, labor disputes, environmental concerns, or technological advancements can impact the performance of the fund.

Timing and Market Cycles

The state of the global economy and investor sentiment frequently have an impact on precious metals and mining investments, which are cyclical. Timing the market or attempting to predict short-term price movements can be challenging. Investors should have a long-term perspective and consider the fund as part of a well-diversified portfolio. The fund’s performance may not always align with short-term market trends and may require patience and a focus on long-term objectives.

Investor Suitability

The Vanguard Precious Metals and Mining Fund may be suitable for investors seeking exposure to the precious metals and mining sectors and who are willing to accept the potential risks associated with this specialized investment. It is important to consider one’s risk tolerance, investment goals, and time horizon before making an investment decision. Investors should carefully assess whether the fund aligns with their overall investment strategy and financial objectives.


Investors have the chance to acquire exposure to the potential growth and diversification benefits of the precious metals and mining industries with the Vanguard Precious Metals and Mining Fund. This fund focuses on investing in precious metals and mining companies. The fund, which primarily invests in equity securities issued by companies operating within the industry, has the objective of maximizing prospective returns while simultaneously minimizing risk through diversification.

Investors need to give serious consideration to the characteristics of the fund, as well as its track record and the dangers that are linked with it, before deciding whether or not it meets their investing goals. Additional assistance for decision-making can be gained by gaining additional insights, such as by consulting with a financial advisor or completing additional research. When considering the inclusion of the Vanguard Precious Metals and Mining Fund as part of a well-diversified investment portfolio, it is essential to have a clear understanding of the risks that are associated with the investment and to keep a focus on the long term.

So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

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Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

Silver Bullion

Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well