Frank Holmes and Brian Hicks Talk Junior Miners with The Gold Report

Author: USGI
Date Posted: June 12, 2013 Read time: 4 min

In an interview with The Gold Report, Frank Holmes and Brian Hicks talk about the recent volatility in gold as well as how it is affecting the mining sector and U.S. Global’s gold funds.

Frank believes three trends will hurt the junior resource cycle for the next few years:
1) A lack of discoveries, 2) geologists having no relationship with money managers or capital markets, and 3) excessive government regulations. But there are mining companies that are adapting to these challenges by focusing on a return-on-capital model or increasing their dividends.

Read the interview now to see which gold miners we prefer

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World Precious Minerals Fund Average Annual Total Returns as of 3/31/13

One-Year

Five-Year

Ten-Year

Gross Expense Ratio

-28.36%

-9.04%

12.29%

1.45%

 

Expense ratios as stated in the most recent prospectus. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings.  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.

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. Distributed by U.S. Global Brokerage, Inc.

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.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. 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.

Holdings in the Global Resources, Gold and Precious Metals and World Precious Minerals Funds as a percentage of net assets as of 3/31/13: Alamos Gold Inc (Global Resources Fund 0.96%, Gold and Precious Metals Fund 1.90%, World Precious Minerals Fund 1.95%), B2Gold Corp (Gold and Precious Metals Fund 3.15%, World Precious Minerals Fund 1.23%), Franco-Nevada Corp. (Global Resources Fund 0.06%, Gold and Precious Metals Fund 3.17%, World Precious Minerals Fund 1.33%), Lundin Mining Corp (Global Resources Fund 0.86%), Market Vectors Gold Miners ETF  (Gold and Precious Metals Fund 0.17%, World Precious Minerals Fund 0.17%), Market Vectors Junior Gold Miners ETF  (Gold and Precious Metals Fund 0.07%, World Precious Minerals Fund 0.08%), Newmont Mining Corp. (Global Resources Fund 2.12%, Gold and Precious Metals Fund 1.76%, World Precious Minerals Fund 0.19%), Pan American Silver Corp.  (Gold and Precious Metals Fund 2.85%, World Precious Minerals Fund 0.36%), Romarco Minerals Inc. (World Precious Minerals Fund 0.29%), SEMAFO Inc (Gold and Precious Metals Fund 0.17%, World Precious Minerals Fund 0.15%), SPDR Gold Trust (Gold and Precious Metals Fund 3.20%, World Precious Minerals Fund 1.72%)