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Fifty Shades of Gold
Frank Holmes, CEO and Chief Investment Officer
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Even After a 2 Year Gold Selloff, Investors Are AheadWith 10 Percent Weighting in Our Gold Funds
2
The chart illustrates the performance of a hypothetical $10,000 investment made in the funds and strategy during the depicted time frame. Figures includereinvestment of capital gains and dividends, but the performance does not include the effect of any direct fees described in the funds prospectus (e.g.,
short-term trading fees) which, if applicable, would lower your total returns. This hypothetical portfolio is presented for educational and illustrative purposes
only and is not a recommendation to engage in any particular investment strategy. Past performance does not guarantee future results.
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3
Government Policy Model Precursor for Change
President Barack ObamaBen Bernanke, Chairman
of the Federal Reserve
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Follow the MoneyPresidential Election Cycle
4
Government Policy Is a
Precursor to ChangeMarch 2009
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Follow the Money
Equities and Gold Have Outperformed Bonds
5
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6
Emerging World Holds 50% of theGlobal Population, Just 23% of GDP
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Compare E7 vs G7 Money Supply GrowthEmerging Worlds Money Supply is Robust
7
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8
Its Not the Political Party,Its the Political Policies
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Its Not the Political Party,
Its the Political PoliciesDeclining Value of the U.S. Dollar Since 1970
9
Alan Greenspan Ben BernankeRichard Nixon
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The Spotty Track Record of the FederalReserves Economic Projections
Alan Greenspan Ben Bernanke
10
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Gold Demand Drivers
11
Elvis Presley
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Follow the Money
UnprecedentedCash Injections from Central Banks
12
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Gold Does Not Look Like a Bubble
13
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Similar PatternsRising U.S. Deficit and Gold Prices
14
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Warren Buffett vs. Gold
15
Warren Buf fett
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Great Roll Over or Rip Off Creates Opportunity
16
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Massive Liquidation of Financial Gold
17
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Gold Net Commercial Position Where is the Physical Gold?
1818
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Indian Gold PremiumsSurge to All-Time Highs
19
October 25, 2013
Source: www.goldchartsrus.com, U.S. Global Investors
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Indian Premiums and Import Taxes BringEquivalent Gold Price to $1,632 Per Ounce
20
October 25, 2013
Source: www.goldchartsrus.com, U.S. Global Investors
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Chinas Rush to BuyGold on Lower Prices
21
August 9, 2013
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Follow the Money (Gold) to ChinaChina Consumes Almost 100% of Worlds Gold Mine Production
22
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China Gold Flows
23
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Unusual Gold Trading in Futures Market
24
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Gold ETF ObservationsSelling Declining with Lower Prices
25
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Silver ETF ObservationsBuying with Lower Prices
26
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Platinum ETF ObservationsBuying Rises with Lower Prices
27
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Contrarian
Gold Stocks Poised to Bounce
28
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Will Gold Follow Its SeasonalPattern This Year?
29
September 9, 2013
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10-Year Rolling Average CPISince 1972 is 2.43%
30
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Manipulation of CPI Calculation?9.38% vs. 1.75% Debate
31
f d
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Central Bank Gold Buyingat 50-Year High
32
f d
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Will Rising Inflation Rates Drive Gold Higher?
33
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Gold Would Need to Be Much Higherto Cover U.S. Money Supply
34
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Driver: The Love Trade
35
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Holidays Drive Gold Demand
37
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Gold Love Trade
Strong Correlation Between Rising Incomes and Gold Price
38
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Chinas PMI Continues to Expand
39
August 26, 2013August 2, 2013
March 5, 2013
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Backdrop of Rising Global PMIs
40
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Chinas Increasing Jewelry Demand
41
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Chinas Increasing Appetite for Gold
42
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Value Drivers for Superior Performance
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Exploration Spending HasSkyrocketed Without True Success
44
At $9 bi llion/year plus replacementrequirements of 90 Million oz/yeara discovery cost of $100/oz isneeded. This is low.
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+3 Million Ounce Discoveries
Becoming Scarce
45
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Gold Grades Fall
46
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Production Has Not Expanded,
Yet Growth of 6 Percent Per Year is Planned
47
Source: Gold Fields, U.S. Global Investors
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The Replacement Cost for an Ounce Of Gold is$1500 with $1700 as a Sustainable Numb
