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What Is Gold's Love Trade and Fear Trade?

Please note: The articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

July 3, 2018

There are two main drivers of gold demand across the word: the Love Trade and the Fear Trade. The Love Trade has driven the obsession of gold for thousands of years and continues today in countries where it’s customary to gift gold to friends and relatives for birthdays, weddings and holidays – largely in China and India. The Fear Trade, on the other hand, is triggered when people turn to gold as a hedge against poor government or central bank policies that might result in currency devaluation, inflation, deficit spending and negative real interest rates. Frank Holmes developed these concepts to help explain the yellow metal’s seasonal trading patterns.

To hear Frank’s full recap, watch the video below!

Want to learn more about the Love Trade and Fear Trade? Download our free whitepaper, Gold’s Love Trade, today! clicking here.

 

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Net Asset Value
as of 12/14/2018

Global Resources Fund PSPFX $4.53 -0.09 Gold and Precious Metals Fund USERX $6.37 -0.07 World Precious Minerals Fund UNWPX $3.01 -0.01 China Region Fund USCOX $7.94 -0.13 Emerging Europe Fund EUROX $6.14 -0.08 All American Equity Fund GBTFX $23.78 -0.31 Holmes Macro Trends Fund MEGAX $17.96 -0.19 Near-Term Tax Free Fund NEARX $2.19 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change