usfunds.com
1.800.US.FUNDS July 2013 • 13-381
The World of Gold
Frank Holmes, CEO and Chief Investment Officer
usfunds.com
July 2013 13-381
usfunds.com
2
Performance and Results Oriented
Winner of 29 Lipper performance awards,
certif...
usfunds.com
July 2013 13-381
usfunds.com
Fund Recognition:
2 Funds in the Top 12 Percent for 10-Year Period
33
usfunds.com
July 2013 13-381
usfunds.com
4
Based on Risk-Adjusted Return
usfunds.com
July 2013 13-381
usfunds.com
Focus on Education
5
43 MFEA STAR Awards for Excellence in Education
usfunds.com
July 2013 13-381
usfunds.com
Branding – Education
6
 Investor Alert and Advisor
Alert are key communication
to...
usfunds.com
July 2013 13-381
usfunds.com
Are YOU Reading U.S. Global’s Investor Alert?
Jim Cramer Is.
7
Tweeted to his loy...
usfunds.com
July 2013 13-381
usfunds.com
Thailand Stock Market Up 42 Percent
Under New Prime Minister
8
usfunds.com
July 2013 13-381
usfunds.com
President Obama Meets with Prime Minister
Yingluck Shinawatra of Thailand
9
Prime...
usfunds.com
July 2013 13-381
usfunds.com
President Obama Meets with Prime Minister
Yingluck Shinawatra of Thailand
10
Prim...
usfunds.com
July 2013 13-381
usfunds.com
President Obama Meets with Prime Minister
Yingluck Shinawatra of Thailand
11
Prim...
usfunds.com
July 2013 13-381
usfunds.com
President Obama Meets with Prime Minister
Yingluck Shinawatra of Thailand
12
Prim...
usfunds.com
July 2013 13-381
usfunds.com
13
usfunds.com
July 2013 13-381
usfunds.com
Gold Does Not Look Like a Bubble
14
usfunds.com
July 2013 13-381
usfunds.com
In Percent Terms,
GLD Lost More, But
15
usfunds.com
July 2013 13-381
usfunds.com
Facebook and Apple Lost More
Money for Investors than Gold ETF
16
usfunds.com
July 2013 13-381
usfunds.com
Even After a 2 Year Gold Selloff, Investors Are Ahead
With 10 Percent Weighting i...
usfunds.com
July 2013 13-381
usfunds.com
Tipping Points, Melting Points
H2O is Like Money
18
Ice Turns to Water at 32º, bu...
usfunds.com
July 2013 13-381
usfunds.com
19
Government Policy Model —
Precursor for Change
President Barack ObamaBen Berna...
usfunds.com
July 2013 13-381
usfunds.com
20
It’s Not the Political Party,
It’s the Political Policies
usfunds.com
July 2013 13-381
usfunds.com
It’s Not the Political Party,
It’s the Political Policies
Declining Value of the ...
usfunds.com
July 2013 13-381
usfunds.com
Presidential Election Cycle
Follow the Money
22
Government Policy Is a
Precursor ...
usfunds.com
July 2013 13-381
usfunds.com
Follow the Money —
Equities and Gold Have Outperformed Bonds
23
usfunds.com
July 2013 13-381
usfunds.com
The Spotty Track Record of the Federal
Reserve’s Economic Projections
Alan Greens...
usfunds.com
July 2013 13-381
usfunds.com
Gold Demand Drivers
25
Elvis Presley
usfunds.com
July 2013 13-381
usfunds.com
Follow the Money – Gold Price Surged
With Increase of U.S. Monetary Base
26
usfunds.com
July 2013 13-381
usfunds.com
Follow the Money – Global Liquidity
Boom Good for Gold and Emerging Markets
27
usfunds.com
July 2013 13-381
usfunds.com
Follow the Money — Unprecedented
Cash Injections from Central Banks
28
usfunds.com
July 2013 13-381
usfunds.com
Great Roll Over or Rip Off Creates Opportunity
29
usfunds.com
July 2013 13-381
usfunds.com
Low Real Interest Rates Historically
Fuel Gold, Silver and Oil
30
Tipping Point f...
usfunds.com
July 2013 13-381
usfunds.com
Gold and U.S. Real Rates
31
usfunds.com
July 2013 13-381
usfunds.com
10-Year Rolling Average CPI
Since 1972 is 2.43%
32
usfunds.com
July 2013 13-381
usfunds.com
Manipulation of CPI Calculation?
9.38% vs. 1.75% Debate
33
usfunds.com
July 2013 13-381
usfunds.com
Central Banks Remain
Net Buyers of Gold
34
usfunds.com
July 2013 13-381
usfunds.com
Global Money Supply Influencing Gold Price
35
usfunds.com
July 2013 13-381
usfunds.com
Frugal American – Household
Financial Obligations Ratio
36
usfunds.com
July 2013 13-381
usfunds.com
U.S. GDP
37
usfunds.com
July 2013 13-381
usfunds.com
Gold Would Need to Be Much Higher
to Cover U.S. Money Supply
38
usfunds.com
July 2013 13-381
usfunds.com
Fear Trade: Aligning Gold Price
to Bretton Woods II — $46,000/oz?
39
usfunds.com
July 2013 13-381
usfunds.com
Driver: The Love Trade
40
usfunds.com
July 2013 13-381
usfunds.com
Gold Love Trade
Strong Correlation Between Rising Incomes and Gold Price
41
usfunds.com
July 2013 13-381
usfunds.com
42
Emerging World Holds 50% of the
Global Population, Just 22% of GDP
usfunds.com
July 2013 13-381
usfunds.com
Compare E7 vs G7 Money Supply Growth
Emerging World s Money Supply is Robust
43
usfunds.com
July 2013 13-381
usfunds.com
44
Managing Expectations —
Gold Seasonality
Past performance is no guarantee of f...
usfunds.com
July 2013 13-381
usfunds.com
Holidays Drive Gold Demand
45
usfunds.com
July 2013 13-381
usfunds.com
China s Increasing Jewelry Demand
46
usfunds.com
July 2013 13-381
usfunds.com
“Follow the Money” (Gold) to China
China Consumes Almost 100% of World’s Gold Min...
usfunds.com
July 2013 13-381
usfunds.com
All Known ETF Holdings
of Financial Gold Bullion Falls
48
usfunds.com
July 2013 13-381
usfunds.com
Shorting Gold is a Crowded Trade
49
usfunds.com
July 2013 13-381
usfunds.com
Contrarian Tool
Gold – Net Commercial Position
50
usfunds.com
July 2013 13-381
usfunds.com
Contrarian Investing –
Market Vane Bullish Consensus
51
usfunds.com
July 2013 13-381
usfunds.com
Gold – Net Commercial Position –
Where is the Physical Gold?
5252
usfunds.com
July 2013 13-381
usfunds.com
China’s Rush to Buy
Gold on Lower Prices
53
May 3, 2013
usfunds.com
July 2013 13-381
usfunds.com
Gold Stocks/Gold Ratio Shows
Gold Stocks Undervalued
54
usfunds.com
July 2013 13-381
usfunds.com
CEOs Replaced as Growth
Promise Unfulfilled
Barrick Gold
$20 billion spent to gro...
usfunds.com
July 2013 13-381
usfunds.com
56
The Replacement Cost for an Ounce Of Gold is $1500
with $1700 as a Sustainable...
usfunds.com
July 2013 13-381
usfunds.com
+3 Million Ounce Discoveries
Becoming Scarce and Expensive
57
usfunds.com
July 2013 13-381
usfunds.com
Gold Exploration Spending Has
Skyrocketed Without True Success
58
At $9 billion/y...
usfunds.com
July 2013 13-381
usfunds.com
Gold Mining Dividends Grew
Faster than Price of Gold
59
usfunds.com
July 2013 13-381
usfunds.com
Gold Stocks at Historically
Low Cash Flow Multiples
60
usfunds.com
July 2013 13-381
usfunds.com
Gold Stocks Discounting
Plenty of Negative News
61
usfunds.com
July 2013 13-381
usfunds.com
Most Gold Stocks Are Yielding
More than 5-Year Government Note
62
usfunds.com
July 2013 13-381
usfunds.com
Reasons for Active Management —
Annual Rotation in Leadership 1-2-3
63
Past perfo...
usfunds.com
July 2013 13-381
usfunds.com
64
30 Year Gold Seasonality
Past performance is no guarantee of future results.
usfunds.com
July 2013 13-381
usfunds.com
Gold and Precious Metals Fund (USERX)
65
Average Dividend Yield of the Dividend-P...
usfunds.com
July 2013 13-381
usfunds.com
66
Come Visit Us at
Facebook: www.facebook.com/usfunds
Linkedin: www.linkedin.com...
usfunds.com
July 2013 13-381
usfunds.com
Fund Performance
67
usfunds.com
July 2013 13-381
usfunds.com
Disclosure
Please consider carefully a fund’s investment objectives, risks, charg...
usfunds.com
July 2013 13-381
usfunds.com
Disclosure
Morningstar Ratings are based on risk-adjusted return. The Morningstar...
usfunds.com
July 2013 13-381
usfunds.com
Disclosure
Holdings in the U.S. Global Investors Funds mentioned as a percentage ...
usfunds.com
July 2013 13-381
usfunds.com
Disclosures
Investment Objective: The Gold and Precious Metals Fund is an activel...
Upcoming SlideShare
Loading in …5
×

The World of Gold

408 views
328 views

Published on

Frank Holmes' General Session presentation given at the Agora Financial Investment Symposium, July 2013.

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
408
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The World of Gold

  1. 1. usfunds.com 1.800.US.FUNDS July 2013 • 13-381 The World of Gold Frank Holmes, CEO and Chief Investment Officer
  2. 2. usfunds.com July 2013 13-381 usfunds.com 2 Performance and Results Oriented Winner of 29 Lipper performance awards, certificates and top rankings since 2000 (Four out of 13 U.S. Global Investors Funds received Lipper performance awards from 2005 to 2008, six out of 13 received certificates from 2000 to 2007, and two out of 13 received top rankings from 2009 to 2010.) Investment leadership results in performance
  3. 3. usfunds.com July 2013 13-381 usfunds.com Fund Recognition: 2 Funds in the Top 12 Percent for 10-Year Period 33
  4. 4. usfunds.com July 2013 13-381 usfunds.com 4 Based on Risk-Adjusted Return
  5. 5. usfunds.com July 2013 13-381 usfunds.com Focus on Education 5 43 MFEA STAR Awards for Excellence in Education
  6. 6. usfunds.com July 2013 13-381 usfunds.com Branding – Education 6  Investor Alert and Advisor Alert are key communication tools  Our original, award-winning educational content is in high demand from investors via email, website, social media platforms, apps
  7. 7. usfunds.com July 2013 13-381 usfunds.com Are YOU Reading U.S. Global’s Investor Alert? Jim Cramer Is. 7 Tweeted to his loyal 600,000 readers
  8. 8. usfunds.com July 2013 13-381 usfunds.com Thailand Stock Market Up 42 Percent Under New Prime Minister 8
  9. 9. usfunds.com July 2013 13-381 usfunds.com President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand 9 Prime Minister Shinawatra is Thailand’s first female Prime Minister, and the youngest Thai Prime Minister in over 60 years.
  10. 10. usfunds.com July 2013 13-381 usfunds.com President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand 10 Prime Minister Shinawatra is Thailand’s first female Prime Minister, and the youngest Thai Prime Minister in over 60 years.
  11. 11. usfunds.com July 2013 13-381 usfunds.com President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand 11 Prime Minister Shinawatra is Thailand’s first female Prime Minister, and the youngest Thai Prime Minister in over 60 years.
  12. 12. usfunds.com July 2013 13-381 usfunds.com President Obama Meets with Prime Minister Yingluck Shinawatra of Thailand 12 Prime Minister Shinawatra is Thailand’s first female Prime Minister, and the youngest Thai Prime Minister in over 60 years.
  13. 13. usfunds.com July 2013 13-381 usfunds.com 13
  14. 14. usfunds.com July 2013 13-381 usfunds.com Gold Does Not Look Like a Bubble 14
  15. 15. usfunds.com July 2013 13-381 usfunds.com In Percent Terms, GLD Lost More, But 15
  16. 16. usfunds.com July 2013 13-381 usfunds.com Facebook and Apple Lost More Money for Investors than Gold ETF 16
  17. 17. usfunds.com July 2013 13-381 usfunds.com Even After a 2 Year Gold Selloff, Investors Are Ahead With 10 Percent Weighting in Our Gold Funds 17 The chart illustrates the performance of a hypothetical $10,000 investment made in the funds and strategy during the depicted time frame. Figures include reinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the fund’s prospectus (e.g., short-term trading fees) which, if applicable, would lower your total returns. This hypothetical portfolio is presented for educational and illustrative purposes only and is not a recommendation to engage in any particular investment strategy. Past performance does not guarantee future results.
  18. 18. usfunds.com July 2013 13-381 usfunds.com Tipping Points, Melting Points H2O is Like Money 18 Ice Turns to Water at 32º, but Still H2O
  19. 19. usfunds.com July 2013 13-381 usfunds.com 19 Government Policy Model — Precursor for Change President Barack ObamaBen Bernanke, Chairman of the Federal Reserve
  20. 20. usfunds.com July 2013 13-381 usfunds.com 20 It’s Not the Political Party, It’s the Political Policies
  21. 21. usfunds.com July 2013 13-381 usfunds.com It’s Not the Political Party, It’s the Political Policies Declining Value of the U.S. Dollar Since 1970 21 Alan Greenspan Ben BernankeRichard Nixon
  22. 22. usfunds.com July 2013 13-381 usfunds.com Presidential Election Cycle Follow the Money 22 Government Policy Is a Precursor to Change March 2009
  23. 23. usfunds.com July 2013 13-381 usfunds.com Follow the Money — Equities and Gold Have Outperformed Bonds 23
  24. 24. usfunds.com July 2013 13-381 usfunds.com The Spotty Track Record of the Federal Reserve’s Economic Projections Alan Greenspan Ben Bernanke 24
  25. 25. usfunds.com July 2013 13-381 usfunds.com Gold Demand Drivers 25 Elvis Presley
  26. 26. usfunds.com July 2013 13-381 usfunds.com Follow the Money – Gold Price Surged With Increase of U.S. Monetary Base 26
  27. 27. usfunds.com July 2013 13-381 usfunds.com Follow the Money – Global Liquidity Boom Good for Gold and Emerging Markets 27
  28. 28. usfunds.com July 2013 13-381 usfunds.com Follow the Money — Unprecedented Cash Injections from Central Banks 28
  29. 29. usfunds.com July 2013 13-381 usfunds.com Great Roll Over or Rip Off Creates Opportunity 29
  30. 30. usfunds.com July 2013 13-381 usfunds.com Low Real Interest Rates Historically Fuel Gold, Silver and Oil 30 Tipping Point for Gold 2% Gold & silver perform well in low or negative real interest rate environments +2%
  31. 31. usfunds.com July 2013 13-381 usfunds.com Gold and U.S. Real Rates 31
  32. 32. usfunds.com July 2013 13-381 usfunds.com 10-Year Rolling Average CPI Since 1972 is 2.43% 32
  33. 33. usfunds.com July 2013 13-381 usfunds.com Manipulation of CPI Calculation? 9.38% vs. 1.75% Debate 33
  34. 34. usfunds.com July 2013 13-381 usfunds.com Central Banks Remain Net Buyers of Gold 34
  35. 35. usfunds.com July 2013 13-381 usfunds.com Global Money Supply Influencing Gold Price 35
  36. 36. usfunds.com July 2013 13-381 usfunds.com Frugal American – Household Financial Obligations Ratio 36
  37. 37. usfunds.com July 2013 13-381 usfunds.com U.S. GDP 37
  38. 38. usfunds.com July 2013 13-381 usfunds.com Gold Would Need to Be Much Higher to Cover U.S. Money Supply 38
  39. 39. usfunds.com July 2013 13-381 usfunds.com Fear Trade: Aligning Gold Price to Bretton Woods II — $46,000/oz? 39
  40. 40. usfunds.com July 2013 13-381 usfunds.com Driver: The Love Trade 40
  41. 41. usfunds.com July 2013 13-381 usfunds.com Gold Love Trade Strong Correlation Between Rising Incomes and Gold Price 41
  42. 42. usfunds.com July 2013 13-381 usfunds.com 42 Emerging World Holds 50% of the Global Population, Just 22% of GDP
  43. 43. usfunds.com July 2013 13-381 usfunds.com Compare E7 vs G7 Money Supply Growth Emerging World s Money Supply is Robust 43
  44. 44. usfunds.com July 2013 13-381 usfunds.com 44 Managing Expectations — Gold Seasonality Past performance is no guarantee of future results.
  45. 45. usfunds.com July 2013 13-381 usfunds.com Holidays Drive Gold Demand 45
  46. 46. usfunds.com July 2013 13-381 usfunds.com China s Increasing Jewelry Demand 46
  47. 47. usfunds.com July 2013 13-381 usfunds.com “Follow the Money” (Gold) to China China Consumes Almost 100% of World’s Gold Mine Production 47
  48. 48. usfunds.com July 2013 13-381 usfunds.com All Known ETF Holdings of Financial Gold Bullion Falls 48
  49. 49. usfunds.com July 2013 13-381 usfunds.com Shorting Gold is a Crowded Trade 49
  50. 50. usfunds.com July 2013 13-381 usfunds.com Contrarian Tool Gold – Net Commercial Position 50
  51. 51. usfunds.com July 2013 13-381 usfunds.com Contrarian Investing – Market Vane Bullish Consensus 51
  52. 52. usfunds.com July 2013 13-381 usfunds.com Gold – Net Commercial Position – Where is the Physical Gold? 5252
  53. 53. usfunds.com July 2013 13-381 usfunds.com China’s Rush to Buy Gold on Lower Prices 53 May 3, 2013
  54. 54. usfunds.com July 2013 13-381 usfunds.com Gold Stocks/Gold Ratio Shows Gold Stocks Undervalued 54
  55. 55. usfunds.com July 2013 13-381 usfunds.com CEOs Replaced as Growth Promise Unfulfilled Barrick Gold $20 billion spent to grow Production down 15% Market Capitalization $20 billion Newmont Mining $16 billion spent to grow Production down 34% Market Capitalization $16 billion Kinross Gold $6.5 billion in writedowns last two years Market Capitalization $6 billion 55 Last 10 Years At least 20 mining CEOs have stepped down in the last year.
  56. 56. usfunds.com July 2013 13-381 usfunds.com 56 The Replacement Cost for an Ounce Of Gold is $1500 with $1700 as a Sustainable Number (2012) — So Under $1500 Many Projects Will Not Come on Stream
  57. 57. usfunds.com July 2013 13-381 usfunds.com +3 Million Ounce Discoveries Becoming Scarce and Expensive 57
  58. 58. usfunds.com July 2013 13-381 usfunds.com Gold Exploration Spending Has Skyrocketed Without True Success 58 At $9 billion/year plus replacement requirements of 90 Million oz/year a discovery cost of $100/oz is needed. This is low.
  59. 59. usfunds.com July 2013 13-381 usfunds.com Gold Mining Dividends Grew Faster than Price of Gold 59
  60. 60. usfunds.com July 2013 13-381 usfunds.com Gold Stocks at Historically Low Cash Flow Multiples 60
  61. 61. usfunds.com July 2013 13-381 usfunds.com Gold Stocks Discounting Plenty of Negative News 61
  62. 62. usfunds.com July 2013 13-381 usfunds.com Most Gold Stocks Are Yielding More than 5-Year Government Note 62
  63. 63. usfunds.com July 2013 13-381 usfunds.com Reasons for Active Management — Annual Rotation in Leadership 1-2-3 63 Past performance is no guarantee of future results.
  64. 64. usfunds.com July 2013 13-381 usfunds.com 64 30 Year Gold Seasonality Past performance is no guarantee of future results.
  65. 65. usfunds.com July 2013 13-381 usfunds.com Gold and Precious Metals Fund (USERX) 65 Average Dividend Yield of the Dividend-Paying Stocks and Bonds in the Fund as of 6/30/2013 Gold and Precious Metals Fund 4.01%
  66. 66. usfunds.com July 2013 13-381 usfunds.com 66 Come Visit Us at Facebook: www.facebook.com/usfunds Linkedin: www.linkedin.com/company/u.s.-global-investors Twitter: www.twitter.com/usfunds Frank Talk: www.usfunds.com/franktalk Investor Alert: www.usfunds.com/alert
  67. 67. usfunds.com July 2013 13-381 usfunds.com Fund Performance 67
  68. 68. usfunds.com July 2013 13-381 usfunds.com Disclosure Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Each tax free fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. Bond funds are subject to interest-rate risk; their value declines as interest rates rise. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer. 68
  69. 69. usfunds.com July 2013 13-381 usfunds.com Disclosure Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Bangkok SET Index is a capitalization-weighted index of all the stocks traded on the Stock Exchange of Thailand. The Nasdaq Composite Index is a capitalization-weighted index of all Nasdaq National Market and SmallCap stocks. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The COMEX is a commodity exchange in New York City formed by the merger of four past exchanges. The exchange trades futures in sugar, coffee, petroleum, metals and financial instruments. The Market Vane Bullish Consensus® measures the futures market sentiment each day by following the trading recommendations of leading commodity trading advisors. The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver. The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The index benchmark value was 500.0 at the close of trading on December 20, 2002. The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. M1 Money Supply includes funds that are readily accessible for spending. M2 Money Supply is a broad measure of money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds. M3 money supply is the broadest monetary aggregate, including physical currency, demand accounts, savings and money market accounts, certificates of deposit, deposits of eurodollars and repurchase agreements. 69
  70. 70. usfunds.com July 2013 13-381 usfunds.com Disclosure Holdings in the U.S. Global Investors Funds mentioned as a percentage of net assets as of 6/30/2013: Agnico Eagle Mines (Gold and Precious Metals Fund 2.10%, World Precious Minerals Fund 2.49%); Alamos Gold (Global Resources Fund 0.20%, Gold and Precious Metals Fund 1.55%, World Precious Minerals Fund 1.62%); Anglogold Ashanti (Gold and Precious Metals Fund 0.01%, World Precious Minerals Fund 0.01%); Apple 0.00%; Aurico Gold (Gold and Precious Metals Fund 0.95%, World Precious Minerals Fund 0.46%); Barrick Gold (Gold and Precious Metals Fund 2.18%, World Precious Minerals Fund 0.12%); Cia De Minas Buenaventura (Gold and Precious Metals Fund 0.34%); Eldorado Gold (Gold and Precious Metals Fund 0.19%, World Precious Minerals Fund 0.12%); Facebook 0.00%; Franco-Nevada (Gold and Precious Metals Fund 2.30%, World Precious Minerals Fund 0.89%); Gold Fields (Gold and Precious Metals Fund 0.01%, World Precious Minerals Fund 0.01%); Goldcorp (Global Resources Fund 1.89%, Gold and Precious Metals Fund 0.21%, World Precious Minerals Fund 0.12%); Harmony Gold (Gold and Precious Metals Fund 1.95%, World Precious Minerals Fund 1.55%); Hecla Mining 0.00%; Iamgold (Gold and Precious Metals Fund 0.07%, World Precious Minerals Fund 0.02%); Impala Platinum 0.00%; iShares Core Total US Bond 0.00%; Kinross Gold (Gold and Precious Metals Fund 1.00%, World Precious Minerals Fund 0.14%); Newcrest Mining (Gold and Precious Metals Fund 1.56%); Newmont Mining (Gold and Precious Metals Fund 2.25%, World Precious Minerals Fund 0.06%); Pan American Silver Corp (Gold and Precious Metals Fund 2.00%, World Precious Minerals Fund 0.25%); Randgold Resources (Global Resources Fund 1.47%, Gold and Precious Metals Fund 0.06%, World Precious Minerals Fund 0.06%); Royal Gold (Gold and Precious Metals Fund 0.65%); Semafo (Gold and Precious Metals Fund 0.17%, World Precious Minerals Fund 0.15%); Silver Wheaton (Gold and Precious Metals Fund 0.35%, World Precious Minerals Fund 0.28%); SPDR Gold Trust (GLD) (Gold and Precious Metals Fund 4.45%, World Precious Minerals Fund 2.59%); SPDR S&P 500 ETF (All American Equity Fund 0.34%); Yamana Gold (Gold and Precious Metals Fund 2.37%, World Precious Minerals Fund 1.54%) 70
  71. 71. usfunds.com July 2013 13-381 usfunds.com Disclosures Investment Objective: The Gold and Precious Metals Fund is an actively managed mutual fund that focuses on gold and precious metals producing companies. The World Precious Minerals Fund is an actively managed fund that focuses on junior and intermediate precious metals exploration companies around the world. The SPDR S&P 500 ETF Trust (SPY) is a passively managed fund that, before expenses, seeks to correspond generally to the price and yield performance of the S&P 500 Index. Liquidity: The Gold and Precious Metals Fund and World Precious Minerals Fund can be purchased or sold at a net asset value (NAV) determined at the end of each trading day. The SPDR S&P 500 ETF can be purchased or sold intraday. These purchases and redemptions may generate brokerage commissions and other charges not reflected in the ETF’s published expense ratio. Safety/Fluctuations of principal/return: Loss of money is a risk of investing in the Gold and Precious Metals Fund, the World Precious Minerals Fund and the SPDR S&P 500 ETF. Shares of the three securities are subject to sudden fluctuations in value. The SPDR S&P 500 ETF may also be subject to bid-ask premiums or discounts to net asset value (NAV) that could adversely affect a shareholder’s actual returns. Tax features: The Gold and Precious Metals Fund and World Precious Minerals Fund intend to make distributions that may be taxed as ordinary income or capital gains. Under current federal law, long-term capital gains for individual investors in the fund are taxed at a maximum rate of 15%. For the SPDR S&P 500 ETF, long-term capital gain distributions will result from gains on the sale or exchange of capital assets held by the fund for more than one year. Any long-term capital gains distributions you receive from a fund are taxable as long-term capital gain regardless of how long you have owned your shares. Long-term capital gains are currently taxed at a maximum of 15%. Information provided here is neither tax nor legal advice and is general in nature. Federal and state laws and regulations are subject to change. 71

×