The Biggest Forces Moving Gold

Author: USGI
Date Posted: January 15, 2015 Read time: 4 min

Hannah Bernard of Viral Network News talks with Frank Holmes to get his take on the gold market as we move into the new year. Frank says that even though there was so much negative sentiment for the precious metal in 2014, many investors failed to realize that when looking at gold in currency terms, it was the second-best performing currency worldwide for the year.

Hannah also asks Frank what he thinks the biggest force for gold is in 2015, and Frank says it all comes back to currency performance. Depending on the country, and how that country’s currency is performing, certain gold names can react positively or negatively. He mentions the weakening of the South African rand as an example. Because the rand weakened in comparison to the strong U.S. dollar, South African gold names surged; one in particular, Gold Fields, jumped 40 percent recently.

For more on gold from Frank Holmes, watch the entire replay below.

 

 

 

Did you know each Monday Frank Holmes teams up with Kitco News to provide weekly analysis on the gold market? Don’t miss the next Gold Game Film! All replays are located on our website.

 

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.

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.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.

Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer. These risks could cause the fund’s share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes.

The Dallas Fed Manufacturing Index is based on the Federal Reserve Bank of Dallas monthly surveys of over 300 Texas businesses in the manufacturing and service sectors. The information collected is a valuable component of regional economic analysis and serves as input for monetary policy deliberations on the Federal Open Market Committee.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Emerging Europe Fund and Near-Term Tax Free Fund as a percentage of net assets as of 09/30/2014: Archer-Daniels-Midland Co 0.00%, Baker Hughes Inc. 0.00%, Facebook Inc. 0.00%, Mercedes Benz 0.00%, Repsol 0.00%, Talisman Energy Inc. 0.00%, Twitter 0.00%.

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.