Www.usfunds.com 1.800.US.FUNDS U.S. Global Investors Searching for Opportunities, Managing Risk July 2009 09-471 What’s Driving Gold? Frank Holmes, CEO.

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Presentation transcript:

US.FUNDS U.S. Global Investors Searching for Opportunities, Managing Risk July What’s Driving Gold? Frank Holmes, CEO and Chief Investment Officer

July Fund Recognition Winner of 26 Lipper Fund Awards and certificates since 2000 Investment leadership results in performance

July Government Policy Model — Precursor for Change

July E7 Countries

July G7 Countries

July Holding T-bills Or Cash No Longer Generates Much Interest and, Unlike Gold, Still Bears Credit, Inflation, FX and Political Risk

July U.S. M2 Money Supply Biggest Economy in the World Source: U.S. Global Research

July China M2 Money Supply Most Populated Country In The World Source: U.S. Global Research

July High Correlation of Oil and Money Supply Government will continue to print money, like the recent bailout of Fannie Mae and Freddie Mac, to support the economy

July Narrow Money Supply Growth EXPLOSION Source: Weldononline.com

July Swiss Money Supply EXPLOSION Source: Weldononline.com

July Even Japanese Money Supply Growth is Accelerating Source: Weldononline.com

July Bank of England has Cut Rates to RECORD LOW, Shifting the Focus Towards Quantitative Easing. Bank of Canada Cut Rates to 0.50%, and Discusses Quantitative Easing Source: Weldononline.com

July Central Bank of China Cuts Rates to RECORD LOW Source: Weldononline.com

July Swiss Short Rates Back to Historic Lows at 0.50% Source: Weldononline.com

July Price Deflation Intensifying Beyond ‘Historic’ Levels Source: Weldononline.com

July Gold ‘Priced-in’ Rupee Flirting with 50,000 Rupee Per Ounce Source: Weldononline.com

July “Consumer Cocoon”… as Consumption Collapses Governments Panic to Reignite the Economy Source: Weldononline.com

July China — Massive Infrastructure Initiatives Take Hold Source: Weldononline.com

July China — Money Supply Accelerates Since November 2008 Source: Weldononline.com

July China — Money Supply Grows to New Levels Source: Weldononline.com

July Technical Spotlight: Gold Source: Weldononline.com

July Technical Spotlight: Gold Source: Weldononline.com

July Technical Spotlight: Silver Source: Weldononline.com

July Special Focus: U.S. Dollar Source: Weldononline.com

July Special Focus: U.S. Dollar Source: Weldononline.com

July Is Gold ‘Signaling’ That Commodities Provide ‘Value’ … or … Is Gold ‘Overvalued’ ??? Source: Weldononline.com What’s Driving Gold Webcast 03/05/09

July In Gold They ‘Trust’ … Versus ALL Paper Source: Weldononline.com

July Gold seasonality

July Gold 60-Day % Change (March 21, 1994 through March 19, 2009) Sources: Bloomberg, U.S. Global Research Volatility Rolling 60 Days Raise cash Invest cash Raise cash Invest cash

July Gold vs. Dollar 60-day % Change Oscillator (March 19, 1999 through March 19, 2009) Sources: Bloomberg, U.S. Global Research Oscillator Rolling 60 Days

July Gold/S&P 500 ratio Gold appears undervalued to the S&P 500.

July Right Time for Gold Mining Stocks? What’s Driving Gold Webcast 03/05/09

July Right Time for Gold Mining Stocks? Investor Alert Special Report 06/05/09

July Value Drivers for Superior Performance

July Higher Interest Rates Would Pose Risk to Gold Source: Weldononline.com

July The critical drivers for gold are pointing in the same direction. What’s Driving Gold?

July Come visit us at… Facebook: Search for U.S. Global Investors Twitter: Frank Talk: Investor Alert:

July Disclosures All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Toronto Stock Exchange Gold and Precious Minerals Index is a capitalization-weighted index designed to measure the performance of the gold and precious minerals sector of the TSX 300 Index. The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar. The Reuters/Jefferies CRB Index is an unweighted geometric average of commodity price levels relative to the base year average price. The Goldman Sachs Commodity Index is a composite index of commodity sector returns, representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities. None of U.S. Global Investors clients held any of the securities mentioned as of 3/31/09. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.