With the presidential election, political events around the world, and the rise of complex algorithms influencing our daily lives, gold remains attractive for investors worldwide. How has the landscape changed and why does gold still glitter? Watch this webcast replay to learn more. Webcast dated: December 2, 2016.
Nicola Mining Inc. Corporate Presentation May 2024
What's Driving Gold? Invasion of the Quants
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Be Sure to Participate in Our Polls
You Could Be a Winner!
24 Carat Gold Plated Horseshoe
2
Three opportunities to win:
We’ll select one person at
random from each poll
question.
12. The Periodic Table of Commodity ReturnsThe Periodic Table of Commodity Returns
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13. The Periodic Table of Commodity ReturnsThe Periodic Table of Commodity Returns
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Each Asset Class Has Its Own DNA of Volatility
Daily Rolling 1
Year
Gold Bullion ±1% ±19%
NYSE Arca Exchange Gold BUGS Index ±3% ±39%
WTI Crude Oil ±3% ±38%
S&P 500 Index (SPX) ±1% ±18%
Euro ±1% ±10%
Canadian Dollar ±1% ±10%
U.S. Dollar Index ±1% ±9%
Source: Bloomberg, U.S. Global Investors
Standard deviation based on 10-year daily data as of 9/30/2016
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Standard deviation is a measure of the dispersion of a set of data from its mean. The more
spread apart the data, the higher the deviation. Standard deviation is also known as
historical volatility. Past performance is no guarantee of future results.
19. Nominal Interest Rates
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Real Interest Rates
Investors Focus on Tip of Interest Rates
INVESTORS NEED TO FOCUS
ON REAL INTEREST RATES
(Nominal Rates – CPI = Real Rates)
Historically, when CPI inflation has been greater than
nominal rates, real interest rates became negative,
and gold rose in value.
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Fear Trade: The Inverse Relation Between Real Interest Rates
and the Price of Gold
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Aug 2015
vs
Aug 2016
Compare
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Fear Trade: The Inverse Relation Between Real Interest Rates
and the Price of Gold
22
Nov 2015
vs
Nov 2016
Compare
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Understanding Various Market Cycles
Managing Expectations — Cycles
DAY MONTH ANNUAL
SEASONAL
PRESIDENTIAL
4-YEAR
LIFE CYCLE
OF MINE
8-YEAR
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26. 26
The seasonal pattern shows historical
tendency of when the highest and
lowest prices occurred, based on analysis
of daily prices collected over the last 5,
15 and 30 years by Moore Research
Center, Inc.
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India’s Spot Gold Premium/Discount
Through U.S. Election Day
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This index calculates the Premium/Discount of the Gold Spot price in India to Gold Spot in the
U.S. dollar (USD/troy oz). The index uses a 10% import duty which came into effect in 2013.
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India’s Spot Gold Premium/Discount
After U.S. Election Day
36
This index calculates the Premium/Discount of the Gold Spot price in India to Gold Spot in the
U.S. dollar (USD/troy oz). The index uses a 10% import duty which came into effect in 2013.
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The Great Tectonic Shift of Physical
Gold From West to East
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February 8, 2016
In December 2015, China imported 180 tonnes of
gold from Switzerland alone.
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Near-Record Gold ETF Inflows
in First Quarter
The price of gold is subject to substantial price fluctuations over short periods of time and
may be affected by unpredicted international monetary and political policies.
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Visit usfunds.com
to watch a replay
of our webcast,
All Eyes on Gold:
What’s Attracting
Investors to the
Yellow Metal
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Gold Cycle 2001 to 2007: Gold Stocks
Outperformed Bullion
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Past performance does not guarantee future results.
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Gold Cycle 2009 to 2016: Bullion
Outperformed Gold Stocks
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Past performance does not guarantee future results.
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Gold Cycle Year-to-Date: Bullion
Outperformed Gold Stocks
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Past performance does not guarantee future results.
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Royalty Companies Have Had a Greater
Revenue Per Employee Model than Producers
Royalty companies serve as
specialized financiers that help fund
miners’ exploration and production
projects. In return, they receive either
royalties on whatever the mine
produces or a “stream,” which is a
commitment to an agreed-upon
number of ounces of gold or other
precious metal per year.
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As of 11/4/2016
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Recognition As an Industry Leader
in Investor Education — 80 Awards
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80 Mutual Fund Education Alliance STAR Awards
2007 - 2016
MFEA
The Mutual Fund Education Alliance (MFEA) is a national industry association committed to investor education, and its
STAR Awards program recognizes marketing communications efforts in the mutual fund industry. The awards competition is
judged by industry professionals, and based on criteria including educational value, content, design and functionality.
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Total Annualized Returns as of 9/30/2016
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Expense ratios as stated in the most recent prospectus. The expense cap is a voluntary limit on total fund operating
expenses (exclusive of any acquired fund fees and expenses, performance fees, extraordinary expenses, taxes,
brokerage commissions and interest) that U.S. Global Investors, Inc. can modify or terminate at any time, which may
lower a fund’s yield or return. Performance data quoted above is historical. Past performance is no guarantee of future
results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense
limitations, without which returns would have been lower. Current performance may be higher or lower than the
performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct
fees described in the fund’s prospectus (e.g., short-term trading fees of 0.05%) which, if applicable, would lower your total
returns. Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data
current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS. High double-digit returns are
attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the
future.
One-Year Five-Year Ten-Year
Gross
Expense
Ratio
Expense
Cap
World Precious Minerals
Fund (UNWPX)
151.98% -6.49% -0.75% 2.01% 1.90%
NYSE Arca Gold Miners
Index
95.49% -12.44% -1.75% N/A N/A
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Disclosures
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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. Foreside Fund
Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
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.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not
be appropriate to every investor.
Past performance does not guarantee future results.
The Caixin China Manufacturing PMI is a composite indicator designed to provide an overall view of activity in
the manufacturing sector and acts as a leading indicator for the whole economy.
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Disclosures
85
The J.P. Morgan Global Purchasing Manager’s Index is an indicator of the economic health of the global manufacturing sector. The
PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment
environment.
The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies
involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by
including companies that do not hedge their gold production beyond 1.5 years.
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 S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the
deviation. Standard deviation is also known as historical volatility.
The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar.
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Disclosures
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Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end.
Companies not held in a U.S. Global Investors fund at quarter end may have previously been held in a fund and may be held in a
fund in the future.
Holdings in the World Precious Minerals Fund (UNWPX) as a percentage of net assets as of 09/30/2016: Anglo American Platinum
0.00%, Aquarius Platinum 0.00%, Evolution Mining 0.00%, Facebook 0.00%, Franco Nevada 0.00%, Harmony Gold Mining 0.00%,
Impala Platinum Holdings 0.00%, Newcrest Mining 0.00%, Newmont 0.00%, Northern Star Resources 0.33%, Pan African
Resources 0.00%, Pan American Silver 0.00%, Ramelius Resources 0.00%, Regis Resources 0.00%, Resolute Mining 0.00%,
Royal Gold Inc. 0.00%, Saracen Minerals 0.00%, Sibanye Gold 0.00%, Silver Wheaton 0.00%, St. Barbara 1.67%