Why consider investing in gold?

  • Since the beginning of recorded history, gold has been treasured for its scarcity and lasting value.
  • Investors look to gold as a store of value during times of economic uncertainty.
  • Gold acts as a portfolio diversifier, often moving differently than other assets.

The Golden Rule

At U.S. Global Investors we advocate for the Golden Rule of having a 10 percent portfolio weighting in gold. We believe this allocation should be divided with 5 percent in physical gold and gold jewelry and 5 percent in high quality gold equities, mutual funds and ETFs – while rebalancing annually.

Gold Demand
Is Largely Driven By China and India

The world’s two most populated countries also happen to be the two biggest consumers of gold, largely because it’s customary to give gold during birthdays, weddings and holidays in China and India. We call this the Love Trade. We invite you to learn more about seasonal gold patterns in this free whitepaper!

What Could Lead to Higher Gold Prices?

Cause
Effects
Possible Ramifications
Low or Negative Interest Rates
When real interest rates are low (or negative), investors turn away from paper assets with declining value and turn toward assets with real value, like gold.
More Demand for Gold
Higher Gold Prices
Central Bank Policy
For the past several years, central banks around the world have switched from being net sellers to net buyers of gold.
Gold Viewed as Currency
Higher Gold Prices
Growth in World Money Supply
Central banks around the world are focused on stimulative monetary policies to encourage growth.
Declining Confidence in Paper Money
Higher Gold Prices
Lack of New Discoveries in Gold Mines
Gold miners have experienced increased labor costs and taxes, resulting in a higher replacement cost per ounce of gold.
Stagnant Production and Reduced Supply
Higher Gold Prices
China and India “Chindia” Have Strong Cultural Affinity for Gold
Growing middle classes in the world’s most populous countries fuel gold buying for weddings and seasonal gifts.
Increased Spending Power Correlated with Gold Buying
Higher Gold Prices

U.S. Global Investors has over 50 years of experience investing in the gold space.

With a high level of expertise in this specialized sector of precious minerals, our portfolio management team includes professionals with experience in geology, mineral resources and mining finance.