What Drives Performance of Gold Stocks
Source: http://www.usfunds.com/investor-resources/frank-talk/?i=1033Posted on Wednesday, September 2nd, 2009 | In Investing Lessons
I appeared on CNBCrsquo;s ldquo;Street Signsrdquo; with Erin Burnett this afternoon to discuss the research we did on the September performance for gold. Burnett asked what particularly drives performance of certain gold stocks over others.
ldquo;What research has shown is that the leverage is in unhedged gold stocks. Thatrsquo;s where you get a bigger move. And historically a 1 percent move in the price of bullion translates into a 3 percent move for unhedged gold stocks. So thatrsquo;s what we focus on and we like those companies that protect the shareholdersrsquo; value on a per share basis. And what wersquo;ve seen is those companies that have the highest production-per-share growth and reserve-per-share growth end up having the best performance.rdquo;
The following securities mentioned in the interview were held by one or more of U.S. Global Investors family of funds as of 6/30/09: nbsp;Jaguar Mining, Randgold Resources, Royal Gold, Teck Resources Ltd. 09-594
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Erin Burnett, Frank Holmes;, Frank Talk, Investing Lessons, Randgold Resources;, Teck Resources Ltd.
 About Frank Holmes (http://www.usfunds.com/franktalk)
Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold and Precious Metals Fund (USERX). |
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