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Please note: The Frank Talk 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.

What’s Really Driving Gold?

November 15, 2011

Today I’m in New York to participate on a panel at Terrapin’s Commodities Week 2011 Conference. This is one of the most important gatherings of commodities investors and traders in the world.

Yesterday, I had the opportunity to stop by the InvestmentNews offices to speak with Mark Bruno regarding higher gold prices. One of several key factors influencing gold’s recent price action is negative real interest rates.

Whenever a country has negative real rates, meaning the inflationary rate (CPI) is greater than the current interest rate, gold tends to rise in that country’s currency. Right now, investors are losing money on Treasury bills and money market accounts because interest rates are near zero and inflation sits just under 4 percent.

I also discuss what I think could derail higher bullion prices and discuss how emerging economies are enjoying a rising GDP per capita and how this could influence gold.

Also, read about how gold is currently in season.

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Diversification does not protect an investor from market risks and does not assure a profit. 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.


3 Drivers, 2 Months, 1 Gold Rally?
November 7, 2011

Net Asset Value
as of 09/27/2021

Global Resources Fund PSPFX $6.31 0.10 Gold and Precious Metals Fund USERX $11.22 0.03 World Precious Minerals Fund UNWPX $4.33 0.01 China Region Fund USCOX $8.33 -0.03 Emerging Europe Fund EUROX $6.96 0.08 Global Luxury Goods Fund USLUX $23.90 -0.01 Near-Term Tax Free Fund NEARX $2.24 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $1.99 No Change