Index investing takes out the risk that you — or a mutual fund manager — assumes when picking individual stocks. The index basically follows the industry as a whole. Therefore, your portfolio does as well as the industry minus expenses.
However, index funds are — or should be — much cheaper than actively traded funds. That's because they don't have to pay a manager to choose companies to buy and sell, and their transaction costs are a lot smaller because the fund should buy and sell only when the index changes, which should not happen often.
There are around 36 publicly listed top clean gold mining companies that are serving from the decades in this industry.
The first one was started by the American Stock Exchange (now it's listed by the NYSE Arca), and it's known as the Gold BUGS Index (HUI). It's made up of the fifteen largest gold producing companies that do not hedge the price they receive for their gold output more than one and a half years in advance.
It was started on March 15, 1996, and created by the acronym of Basket of Unhedged Gold Stocks.
A second closely watched precious metal index is the Philadelphia Gold and Silver Index (XAU). This is a list of eleven precious metals producers listed on the Philadelphia Stock Exchange.