The Elements Supporting Gold

Author: USGI
Date Posted: April 21, 2015 Read time: 2 min


Daniela Cambone of Kitco News welcomes Frank Holmes back this week for another edition of Gold Game Film. Frank starts the conversation by saying he is impressed that the gold price is where it is today, particularly because real rates of return in the United States are positive. He reminds investors that gold has an inverse relationship to the dollar, and real interest rates are key.

Frank adds that the economic prosperity out of China has contributed to gold demand as well. The Love Trade is still alive in the Asian nation, where consumers continue to purchase a substantial amount of the metal. Tune in below to see the full interview!

 

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Want more on gold? Don’t miss the latest blog post from Frank Holmes: Junior Mining Companies Have Taken a Senior Role

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 3/31/2015: Barrick Gold Corp.

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.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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.

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