Portfolio manager Axel Merk discusses gold mining companies with Dow Jones Newswires.

"Axel Merk, portfolio manager of the Merk Hard Currency Fund, points out some of the hazards of investing in gold mining stocks. 'There has been a lot of consolidation in the sector. As a result, there aren't many large companies left,' he said. 'So it's difficult to have diversified exposure to large mining companies -- a problem not only for individual investors, but also for mutual funds.' "