Is it advisable to buy gold mutual fund rather than physical gold?

It depends on the reason for the investment.

If you want to earn money based on the price of golds going up, Buy a mutual fund that buys shares in producing companies, this gives you the best leverage on increasing gold price.

But if you think the monetary system is in crises and is going to end ( not too likely right now) buy physical gold in the form of 99.99% pure one ounce coins, Like Canada Maple leaf, or others that are internationally recognized.

They will not go up as much as stock, but in a monetary meltdown, you have real wealth.

Gold ETF,s are mutual funds based on holding bullion, they will go up, unleveraged minus, holding costs, if there is a run on the fund, you mighht not be able to access your money

NEVER BUY GOLD THAT IS NOT INTERNATIONALY Recognized, Gold bars or coins that are not accepted as to purity, are junk.

I buy Gold mutual Funds, I own $600,000 worth right now, But I do Have 1 (one) 1 ounce Canadian Maple Leaf Coin, Because I like the Romance of owning a peice of the EARTH'S SOUL.

It is smarter to invest in a mutual fund that invests in gold rather than gold itself because mutual funds also invest in other type funds. Also, it is easier to store a piece of paper than it is gold. Mutual funds also have track records that can be researched before being bought.

I would suggest in investing in both paper and actual gold. Try at least 1/2 & 1/2. then adjust from there.

I also believe in purchasing both mutual and phyisical.

Actually for people who are already convinced of gold and silver rather than paper investments. I think this is a no-brainer, but the answer may surprise you.

Go silver. Why? It's cheaper, more rare, and earns much more percentage-wise than gold.

However, gold mutual funds are better than plain mutual funds. And physical gold is better than any other type of gold no doubt. I'm just adding that any form of silver is better than gold too.