Real Negative Interest Rates, Real Positive Influence on Gold
Following his presentation at the 20th Anniversary Vancouver Resource Investment Conference, Frank joins Teresa Matich of Resource Investing News to discuss a time-tested investing strategy: diversification in gold bullion and gold stocks. Negative and near-negative real interest rates are driving investors to seek safety in the precious metal, as the drop in fuel costs and depreciation of local currencies have helped many foreign gold producers expand profit margins.
There’s plenty of bad news in the headlines today, Frank says, but if investors fail to consider which industries and companies benefit in such a climate, they risk missing out on “golden” opportunities. He ends the segment by describing what he thinks Canadian gold miners in particular excel at.
Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility. Diversification does not protect an investor from market risks and does not assure a profit. There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time.
Note that stocks and Treasury bonds differ in investment objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features.
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 12/31/2014: Goldcorp, Inc.; Gold Fields Ltd.
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