Devoted to understanding the basics and fundamentals of investing

I was looking today at the returns on mutual funds for the month of April.  You know I have some interest in momentum strategies so I look for the best returns each month.  I have two observations.

First, of the 30 best performing mutual funds 9 were gold funds and 6 were precious metal funds.  The top performer was US Glbl:World Precious Minerals Fund (UNWPX) with a monthly return of 8.96%, year-to-date returns of 50.15% and 12 month returns of 127.86%.  Number two was also a US Global Investors fund, the Gold Shares Fund (USERX).  It had monthly returns of 11.22%, year-to-date returns of 50.09% and 12 month returns of 140.31%.

Second, I wonder if this amazing performance is an indication of coming inflation or a reflection of the uncertainty in the world.  If you had invested in gold funds over the last 10 years, you probably would have lost money in the 7 of those years when the price of gold fell.  To have it zoom up now may be sending investors a message.  I think this is just one more piece of evidence that inflation is lurking and will come home to roost.