Montreal, Canada

Though I’d wait before going whole-hog at these levels, gold mining stocks are heading much higher before this historical bull market is over.

If you’re contemplating a mining portfolio then look no further than to the best-managed gold mutual funds. I like these funds better than indexing. Yeah, they’re more expensive but so what? Check-out the performance.

You don’t have to be the Hunt Brothers to make a killing in the precious metals. All you need is a list of the world’s top-performing money-managers in the mining sector. From there, dissect the top ten holdings in each portfolio and voila – an instant gold stock portfolio with incredible potential. Or, alternatively, simply buy one of the managers listed below after the next gold stock correction.

I’ve got three countries where some of the world’s best are based.

In Canada, we’ve got the venerable veteran, John Embry, at Sprott Gold & Precious Minerals Fund. Prior to working at Sprott, Embry ran the Royal Trust Precious Metals Fund – a superb performer. I’ve followed Embry’s career since 1990 and I don’t think anyone knows gold better. Embry has been heavily over-weighted in juniors and mid-cap miners in this bull market.

In the United States, it’s hard to put your finger on just one manager. Several come to mind as solid gold-bugs, including John Hathaway at the Tocqueville Gold Fund (TGLDX), Mark Johnson at USAA Precious Metals & Minerals (USAGX), Joe Foster at Van Eck International Gold Investors (INIVX) and Steve Land at Franklin Gold and Precious Metals (FKRCX). These guys always show up in long-term performance charts, according to Morningstar.

Offshore, you’ve got one of the best based in Luxembourg. Previously under the Merrill Lynch banker, Blackrock World Gold Fund (ISIN code: LU0055631609) is a world leader since 1994. Evy Hambro has been a master at the helm, achieving a 650% total return over the last sixteen years. Luxembourg, however, is the world’s largest offshore fund center and U.S. investors are not permitted to buy these products.

Indexing also does the job. But indexing also means doing what the averages are doing. That’s not good enough in a tough market since 2000 and, like it or not, actively-managed funds still belong in a diversified portfolio. Active product can play an important role in a bull market. That’s why I like these managers.