What Investors Should Look for in Gold Company Management

Jim Puplava welcomes Frank Holmes back to Financial Sense Newshour to discuss all things oil and gold. Citing Royal Dutch Shell’s $70 billion acquisition of the BG Group, Frank believes oil prices might have bottomed—though that doesn’t mean the bottom won’t get tested again.

Moving on to gold, Frank points out that the yellow metal, along with many Canadian junior gold producers such as Klondex Mines and Claude Resources, are currently above their 50-day moving averages. Among other characteristics Frank likes to see in a gold company are attractive profit margins, regular dividend payments and dependable management. It’s important that top executives be knowledgeable in geology, know how to tell their company’s story well and be on a first-name basis with brokers, fund managers and others in the capital markets.

Listen to the entire interview by clicking here.

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: Klondex Mines Ltd., Claude Resources Inc., Royal Dutch Shell PLC.

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.

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