Market Movements and Gold’s Reaction

Alex Letourneau of Kitco News welcomes Frank Holmes for this week’s episode of Gold Game Film.  Last week investors saw negative movements in the global equity market, and in turn witnessed gold react positively.

Frank discusses the volatility, specifically noting the massive swing in 10-year government bonds as well as silver stocks. Did you know that for every 1-percent move in bullion, historically we’ve seen a 3-percent move in gold stocks and 4-percent move in silver stocks?

Catch the entire episode to see what opportunities Frank sees for the precious metal, and why he says the Love Trade is in full force right now in India.

For more on how gold reacts to changes in the market, check out the latest Frank Talk!

Past performance does not guarantee future results. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

The HSBC Flash China Manufacturing PMI is published a week ahead of the final HSBC China PMI every month. It analyzes 85-90 percent of the responses to the Final PMI from purchasing executives in more than 400 small, medium and large manufacturers, both state-owned and private enterprises. The Market Vectors Junior Gold Miners Index is a market-capitalization-weighted index. It covers the largest and most liquid companies that derive at least 50 percent from gold or silver mining or have properties to do so.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more of U.S. Global Investors Funds as of 9/30/2014:  Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ).