Through gold investing, Midas Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income. Midas Fund owns securities of companies primarily involved, directly or indirectly, in the business of mining, processing, fabricating, distributing or otherwise dealing in gold, silver, platinum or other natural resources.
Successful gold investing depends on many factors. Chief factors considered by Midas Fund's investment manager in gold investing, among other things, are the ore quality of metals mined by a company, a company's mining, processing and fabricating costs and techniques, the quantity of a company's unmined reserves, quality of management, and marketability of a company's equity or debt securities. In gold investing, management emphasizes the potential for growth of the proposed investment, although it also may consider an investment's income generating capacity as well.
In seeking capital appreciation or income from gold investing, Midas Fund may sell an investment when the value or growth potential of the investment appears limited or exceeded by other investment opportunities, when an investment in the issuer no longer appears to meet the Fund's investment objective, or when the Fund must meet redemptions.
Unlike some gold mutual funds, Midas Fund may also invest in other natural resources companies, such as those involved in ferrous and non-ferrous metals (such as iron, aluminum and copper), strategic metals (such as uranium and titanium), hydrocarbons (such as coal, oil and natural gas), chemicals, forest products, real estate, food products and other basic commodities, if the investment manager deems them to have attractive investment characteristics.
When seeking to achieve its secondary objective of current income, Midas Fund normally invests in fixed income securities of issuers with investment grade ratings. The Fund may invest in certain derivatives such as options, futures and forward currency contracts. The Fund also may engage in leverage by borrowing money for investment purposes. The Fund also may lend portfolio securities to other parties and may engage in short selling. Additionally, the Fund may invest in special situations such as restricted securities, liquidations and reorganizations, which might or might not involve gold investing. The Fund may, from time to time, under an adverse gold investing market or other conditions, take temporary defensive positions and invest some or all of its assets in cash and cash equivalents, money market securities of U.S. and foreign issuers, short term bonds, repurchase agreements, and convertible bonds. When the Fund takes such a temporary defensive position, it may not achieve its investment objective. The Fund also may engage in leverage by borrowing money for investment purposes. The Fund also may lend portfolio securities to other parties and may engage in short selling.
To learn more about gold investing and Midas Fund we invite you to explore our web site or call 1-800-400-MIDAS (6432) to speak to a shareholder services representative. Thank you for investing with Midas!