Why Gold Mining Stocks Are Outpacing Bullion

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


Alex Letourneau of Kitco News welcomes Frank Holmes back for another edition of Gold Game Film, starting with strength seen for gold during the first quarter of the year. Gold stocks are strongly outperforming bullion, a potential turning point in the gold market since stock prices often anticipate moves in the underlying drivers. Frank says that more gold mining CEOs are starting to really focus on the return of capital to their shareholders, noting this as a major reason we’ve seen better performance and trading in these names.

Alex also asks Frank about the release of the Federal Reserve minutes this week, but Frank says he still believes no big news will come from the announcement. Instead, Frank has another important economic indicator for investors to keep their eyes on.

Watch the replay to find out this week’s touchdown pass!

 

None of U.S. Global Investors Funds held any of the securities mentioned in this interview as of 03/31/2015.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P/TSX Global Mining Index is a dynamic international benchmark tracking the world’s leading mining companies. It is composed of publicly-traded international mining companies.

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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