Who’s Who of Gold Investing
Last week I was honored and humbled to be included in American Bullion’s list of “11 powerful people and their insights on gold.” Among the investment giants and thought leaders who also appear on the list are publishing executive Steve Forbes, Mad Money’s Jim Cramer, former Texas Congressman Ron Paul and former Federal Reserve Chairman Alan Greenspan.
Good company, indeed.
All of my fellow gold investors offer scintillating insight into gold investing, much of which I’ve often shared myself—most notably Greenspan’s comment that “gold has special properties that no other currency, with the possible exception of silver, can claim.”
Gold’s value, after all, is not dependent on the credit guarantee of any world government and is universally accepted as a form of payment. If this were not the case, why else would global central banks bother to hold the precious metal? Why else would we be seeing them repatriating their gold reserves from foreign institutions?
Or consider hedge fund manager Kyle Bass’s keen observation that unlike paper money, “they can’t print any more [gold]. They can mine some more, but they can’t print it at the rate central banks are printing.”
Whereas there’s only a finite amount of the yellow metal available to be exhumed from the earth, global central banks are printing money at a furious rate as if it were imaginary Monopoly paper.
In my book The Goldwatcher: Demystifying Gold Investing—which American Bullion quotes from—I write that “bullion is for value investors and mining stocks are for growth investors.” At U.S. Global Investors, we’re growth investors.
But I’ve always advocated that you should own 10 percent gold in your portfolio: 5 percent in bullion or gold jewelry and 5 percent in mining stocks, then rebalance every year.
Although depressed gold prices have put a squeeze on miners lately, there are still quality, well-managed companies out there expanding their profit margins and paying dividends. Many of them we own in our Gold and Precious Metals Fund (USERX) and World Precious Minerals Fund (UNWPX), including Klondex Mines, Royal Gold, Goldcorp and Franco-Nevada.
On another note, be sure to register for today’s online video event hosted by Casey Research, Going Vertical: Deep-Value Stocks to Own in a Rising Gold Market. I’ll be joined by seven other top players in the precious metals market, including Chairman Doug Casey, Franco-Nevada chairman Pierre Lassonde, Pretium Resources president Bob Quartermain and Casey Research’s chief metals and mining strategist Louis James. The event starts at 2:00 p.m. EST, but if you can’t make it, the replay will be available soon afterward.
Also, stay current with the latest news and trends in the world of gold by watching my weekly web program, Gold Game Film, hosted by Kitco’s Daniela Cambone. This Monday we discussed the main drivers of the metal right now, including the strong U.S. jobs data and the start of the Indian wedding season, which begins in mid-April.
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.
Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.
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.
Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Gold and Precious Metals Fund and World Precious Minerals Fund as a percentage of net assets as of 12/31/2014: Franco-Nevada Corp. 6.97% in Gold and Precious Metals Fund, 1.32% in World Precious Minerals Fund; Goldcorp, Inc. 1.03% in Gold and Precious Metals Fund; Klondex Mines Ltd. 10.00% in Gold and Precious Metals Fund, 9.78% in World Precious Minerals Fund; Pretium Resources, Inc. 3.35% in World Precious Minerals Fund; Royal Gold, Inc. 5.99% in Gold and Precious Metals Fund, 1.51% in World Precious Minerals Fund.
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