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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 demand is largely driven by traditional gift giving during cultural festivals, weddings and holidays in many parts of the world, especially India and China.
  • Gold acts as a portfolio diversifier, often moving differently than other assets.

Gold mining stocks are a way for investors to gain exposure to gold.

 Learn More About What’s Driving Gold

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

There is no guarantee that factors described above will result in higher gold prices.

Total Annualized Returns as of 9/30/2016
One-Year
Five-Year
Ten-Year
Gross Expense Ratio
Gold and Precious Metals Fund (USERX)
99.27%
-6.57%
0.75%
2.20%
World Precious Minerals Fund (UNWPX)
151.98%
-6.49%
-0.75%
2.01%

Expense ratios as stated in the most recent prospectus.

The Adviser of the Gold and Precious Metals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of 0.07%, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.90%. With the voluntary expense waiver amount of 0.08%, total annual expenses after reimbursement were 2.05%.

The Adviser of the World Precious Minerals Fund has voluntarily limited total fund operating expenses (exclusive of acquired fund fees and expenses of 0.05%, extraordinary expenses, taxes, brokerage commissions and interest, and advisory fee performance adjustments) to not exceed 1.90%. With the voluntary expense waiver amount of 0.15%, total annual expenses after reimbursement were 1.81%.

U.S. Global Investors, Inc. can modify or terminate the voluntary limits 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.

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.

Diversification does not protect an investor from market risks and does not assure a profit.

The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

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.