(FORTUNE Magazine) – What we said

In "Not All That Glitters" (Feb. 17, 2003--see fortune.com) we cautiously suggested that a rebounding economy, a still-jittery stock market, and a weakening dollar would bode well for gold investors. The yellow metal had recently climbed to a six-year high of $366 an ounce, and some gold bugs were predicting that $450 was near. Noted investor Jean-Marie Eveillard went so far as to predict that "we may be in the early stages of a bull market for gold." To safely play the opportunity, we recommended checking out two no-load mutual funds with solid track records.

What happened

We struck gold. The price of the metal surged over the past year, hitting a 14-year high of $430.50 an ounce on Jan. 6, and our mutual fund picks have soared as well. Vanguard Precious Metals (VGPMX) gave investors a total return of 59% for 2003, and it's up 58% since the article was published. Meanwhile, Tocqueville Gold (TGLDX) returned 54% for 2003 and has gained 53% since our story ran. That run might be cause to voice more caution, but some analysts say that continued global economic growth, the first hints of inflation, and a dollar that is at all-time lows vs. the euro (and expected to remain weak) will push gold even higher. --David Rynecki